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Utah MCA Defense Lawyers Offer Business Debt Relief
Do you own a small business in Utah that is struggling with merchant cash advance (MCA) debt? MCA loans, also sometimes called business cash advances, can seem like an easy solution when you need fast funding but they often come with predatory terms and outrageous interest rates that leave business owners trapped in debt.The good news is that Utah business owners have legal defenses against MCA lenders. There are experienced Utah MCA defense lawyers who understand these complex loans and can help you negotiate a settlement or fight back against an MCA lawsuit.
How MCA Loans Work
Merchant cash advance loans provide quick funding to small businesses by purchasing a percentage of future credit card sales. Instead of getting a lump sum, the MCA company takes a fixed amount from your credit card receipts each day until the balance has been repaid – plus very high fees and interest charges.
- Rates often exceed 100% APR
- Loans are repaid daily from credit card receipts
- If sales drop, repayment amounts can increase quickly
- Loans don’t have a fixed end date
This structure allows MCA companies to skirt state laws on interest rate caps. But federal regulators and courts in states like New York have started recognizing these loans for what they really are – ultra high-interest debt traps.
Utah MCA Defense Law Firms
If you‘re struggling to keep up with MCA payments or have been sued by your lender, a Utah MCA defense lawyer can review your loan documents for violations of state and federal law. Possible defenses include:
- Usury – interest rates over legal limits
- Unfair/deceptive practices
- Breach of contract
- Statute of limitations
Retaining legal counsel levels the playing field against MCA lenders, who often have aggressive collections tactics and in-house counsel. Your lawyer can also negotiate a settlement to reduce or restructure your outstanding balance into affordable payments.
What Utah MCA Defense Lawyers Can Do
Utah attorneys with experience fighting MCA lenders can:
- Review your loan docs – Identify violations of state/federal lending laws
- Answer a lawsuit – Meet deadlines to avoid default judgment
- Assert legal defenses – Usury, deception, breach of contract etc.
- Negotiate settlements – Reduce balances and create affordable payment plans
- Defend against collections – Stop harassment from MCA lenders
Having an attorney levels the playing field when you are sued by a predatory MCA company. Don’t let them intimidate you into accepting an unfair judgment.
Top Utah MCA Defense Firms
MCA Defense FAQs
Do you still have questions about legal defenses against predatory merchant cash advances? Here are answers to some frequently asked questions:What violations should I look for in my MCA contract?
- Interest rates above state usury limits
- Misrepresenting legal options if you default
- Falsely advertising fixed payoff dates or amounts
**What happens if I just stop making daily payments?**MCA lenders often sue for breach of contract if you stop payments. Having an attorney can help negotiate a settlement and defend you in litigation.**Are MCA settlements usually better than judgments?**Yes, most MCA companies will negotiate discounts on outstanding balances and create affordable payment plans to avoid drawn-out litigation.Can my personal assets be at risk in an MCA lawsuit?If you personally guaranteed the MCA loan, the lender can pursue legal action against you individually. An attorney can help protect both your business and personal assets.
Delancey Street – Business Debt Relief
If you are struggling with business debt from an MCA loan or other sources, Delancey Street provides financial consulting and debt relief services to small business owners across the country.While we are not attorneys ourselves, we partner with experienced lawyers to help our clients understand their legal options and defenses. Our dedicated financial experts can also negotiate with creditors to settle debts and create manageable payment plans tailored to your budget.To learn more about Delancey Street’s small business debt relief services, call 212-210-1851 or contact us online today. Our team is ready to help you regain financial stability.
