MCA Defense Lawyers Can Help With Business Debt Settlement

As a business owner facing legal action from an MCA (merchant cash advance) lender, you may feel overwhelmed and unsure of where to turn. MCA loans can carry predatory terms, and disputes often end up in court. The good news is that experienced attorneys can help defend your business and negotiate a fair settlement.

How MCA Loans Work

Merchant cash advances provide quick access to capital by purchasing a percentage of a business’s future credit card sales. The business then repays the MCA by allowing a fixed percentage to be withdrawn daily from credit card receipts.Unlike traditional small business loans, MCAs don’t carry set repayment periods or fixed interest rates. Instead, the total amount due depends on variables like:

• The length of time until repayment
• The percentage taken from daily credit card sales
• Additional fees charged by the MCA company

This open-ended structure allows predatory MCA companies to charge excessively high equivalent interest rates, often exceeding 100% APR.

Common Legal Issues With MCA Loans

The unregulated nature of the MCA industry has led many companies to engage in unlawful collection practices, including:

• Deceptive marketing – Falsely advertising MCAs as “loans” or misrepresenting repayment terms
• Breach of contract – Violating agreed-upon payment percentages or withdrawal amounts
• Unjust enrichment – Charging unreasonable fees not outlined in original contract
• Harassment and intimidation – Aggressive threats to ruin the client’s credit or business reputation

In many cases, MCA companies rely on small business owners lacking the resources to fight back against such predatory tactics. But specialist attorneys can help level the playing field.

How Defense Lawyers Approach MCA Cases

Experienced MCA defense lawyers typically utilize a few key strategies, including:

• Careful contract review – Identifying unlawful terms or deceptive language that may invalidate part or all of the agreement.
• Challenging improper conduct – Building a case around breaches of contract, harassment, unjust enrichment or other unlawful collection practices.
• Alternative dispute resolution – Negotiating with the MCA company through settlement talks, arbitration or mediation to avoid an expensive trial.
• Litigation – If out-of-court resolution fails, seasoned trial lawyers can argue before a judge and jury.

The goal is reaching the most favorable outcome for the client’s situation, whether that involves a cancelled contract, reduced repayment or structured settlement.

Business Debt Settlement Services

If you’ve already defaulted on an MCA loan and are facing threats of legal action, debt settlement may be a wise route. Specialist law firms offer customized business debt settlement services, typically involving:

1. Free Consultation

We will conduct an in-depth review of your business finances to gain clarity on the full scope of debts owed. This allows us to provide specific advice tailored to your unique situation.

2. Case Assessment

Next we thoroughly analyze your case to identify potential defenses, such as breach of contract or unlawful conduct by the MCA company. We also research state laws that could aid settlement negotiations.

3. Settlement Negotiation

Leveraging our findings from steps one and two, we contact the MCA company to initiate settlement talks. The goal is agreeing to close-out the debt for less than the balance demanded.

4. Resolution Finalization

Once a settlement is reached, we ensure proper finalization. This involves formal agreements protecting you from future legal action or collection efforts on the settled debt.Throughout the process our defense lawyers use their litigation experience to aggressively negotiate on your behalf while preparing for trial if talks stall. Contact us today to discuss your situation in a free consultation.

Frequently Asked Questions

Can an MCA company sue my business?

Yes. If a business defaults on an MCA loan, the lender may file a lawsuit demanding repayment of the full balance plus interest and fees. MCA companies typically have aggressive attorneys poised to take legal action at the first sign of delinquency.

What defenses can be raised in an MCA lawsuit?

Common defenses in MCA cases include unconscionability, arguing the contract terms were unjustly one-sided or deceptive… breach of contract by the MCA company failing to uphold agreed-upon terms… usury violations related to excessively high interest rates… and more.

Should I try negotiating an MCA settlement myself?

It’s very risky for business owners to negotiate MCA settlements without experienced legal counsel. The MCA companies and their lawyers are well-versed in getting maximum repayments, while most small business owners lack the expertise to effectively counter their demands.

How much do MCA defense attorneys charge?

Our MCA defense lawyers work on a contingency fee basis – only collecting if we secure a favorable settlement or court victory. Contact us for a free consultation to discuss fee structures.

What Makes a Strong MCA Defense?

Fighting an MCA lender in court requires in-depth case preparation and aggressive negotiation tactics. Our attorneys leave no stone unturned while building robust defenses focused on the unique circumstances of your situation.

Investigating Contract Terms

We thoroughly analyze the original MCA agreement searching for exploitative or unlawful provisions. Some common areas of concern include:

• Deceptively High Rates – Equivalent APRs above state usury caps.
• Onerous Repayment Terms – Excessively high/open-ended daily repayment percentages.
• Hidden Fees – Additional costs not outlined in the initial contract.

Evidence of predatory terms can support unconscionability arguments and contract cancellation.

Uncovering Unlawful Conduct

Even if the original MCA agreement appears lawful on its face, the lender’s subsequent conduct may still provide actionable defenses.Our lawyers thoroughly investigate the full history of repayments, communication records, and collection activity searching for breaches of contract or unlawful practices like:

• Withdrawing incorrect daily repayment amounts
• Charging unauthorized fees not contractually agreed upon
• Threatening damage to the client’s credit rating or business
• Misrepresenting legal rights or potential consequences

Documenting such misconduct strengthens our leverage in settlement talks or at trial.

State Regulatory Landscapes

Navigating the patchwork of state laws related to MCA loans and debt collection is complex. An impactful element of our cases involves analyzing individual state statutes and court rulings that may apply, such as:

• Usury caps on allowable interest rates
• Licensing requirements for lenders or collection agencies
• Consumer protection laws regarding unfair/deceptive practices

Pinpointing violations of state regulations bolsters claims of unlawful conduct. Our familiarity with these nuanced legal landscapes significantly benefits our negotiation stance.

Alternative Dispute Resolution

Ideally, an experienced MCA defense lawyer can resolve matters through settlement negotiations before reaching trial. We prepare thoroughly as if going to court, using that leverage to demonstrate our willingness to litigate if talks stall.Alternative processes like arbitration, mediation or structured settlements allow both parties to avoid risky and costly court battles. The right legal counsel artfully employs compromise and understanding of each side’s limitations to reach agreements.

Litigation Capabilities

However, sometimes cases do end up in the courtroom – especially when confronting unreasonably aggressive MCA firms. Our seasoned trial lawyers have the courtroom skills, strategic thinking and composure under fire needed to argue before judges and juries.We feature extensive experience handling matters like:

• Contract disputes
• Commercial litigation
• Lender liability claims
• Unfair debt collection

If your case does go to trial, rest assured we will tenaciously argue the evidence to maximize your chances of a favorable verdict.

Why Choose Us?

When facing legal action from an MCA lender, turning to specialists with proven experience defending similar cases is crucial. Here is what sets our MCA defense firm apart:

1. In-Depth Understanding of the MCA Industry

Given the rapid rise of MCA loans over the past decade, few practice areas feature more opaque inner-workings than the merchant cash advance industry. Over our history battling exploitative lenders, we’ve cultivated immense first-hand knowledge of:

• The leading companies dominating the MCA space
• Their common contract terms, rates, and fees
• Typical repayment, communication, and collection practices
• And how to exploit loopholes in their model

This unparalleled insider’s perspective informs our ability to build strong cases rooted in the MCA industry’s realities.

2. Nuanced Handling of State Laws & Courts

As noted earlier, individual state statutes and rulings have an outsized impact on the defenses available in MCA disputes. We maintain an in-depth understanding of MCA-related laws and interpretations across multiple states and jurisdictions critical for:

• Pinpointing violations of licensing, usury caps or consumer protection laws
• Identifying relevant rulings from previous state/federal MCA cases
• Crafting arguments tailored to precedents within the presiding court

Our firm includes lawyers admitted to practice in over 15 states, allowing us to argue cases locally or pro hac vice if necessary. This nuanced handling of state-specific laws and courts provides an invaluable asset.

3. Proven Settlement Results

At the end of the day, our ability to consistently negotiate reduced repayments and cancelled contracts speaks for itself. Over many years of confronting predatory MCA firms, we’ve successfully secured settlements including:

• 40-60% reductions in claimed repayment balances
• Waived additional fees and interest charges
• Favorable repayment restructuring
• Complete contract terminations

Contact us to learn more about the results we’ve achieved for small businesses facing MCA legal action. Our track record of delivers gives us unmatched confidence taking on your case.

Contact Our Defense Lawyers Today!

Don’t go it alone against intimidating MCA lenders. Partner with experienced attorneys fully prepared to stand up for your rights. We offer business owners facing MCA lawsuits or collection harassment:

• Free case evaluations – Let’s discuss your situation and options
• Contingency fee structures – No upfront payments required
• Start-to-finish legal guidance – From raising defenses to negotiating reduced settlements to taking your case to trial if necessary

Our passion lies in leveling the playing field against predatory lenders exploiting small business owners. We don’t back down from aggressive MCA firms relying on hollow legal threats. Get in touch today to learn how our lawyers can help protect your livelihood.