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Columbus MCA Defense Lawyers Business Debt Relief

If you run a small business in Columbus, Ohio, chances are you may have heard about merchant cash advances (MCAs) as a way to access capital quickly. While MCAs can provide a fast influx of cash, they also come with high costs and strict repayment terms that can put business owners into difficult debt situations. This is where working with an experienced Columbus MCA defense lawyer can help.Our law firm helps business owners who have gotten into trouble with their MCA agreements and are now facing aggressive collection attempts from funders. We provide practical legal advice and can help negotiate settlements or defend you if legal action is taken. With extensive experience dealing with MCA funders, we understand their tactics and know how to counter them effectively.

How We Can Help With Your MCA Debt

As Columbus MCA defense attorneys, we assist clients by:

• Negotiating settlements – We contact your MCA funder and negotiate reduced payoff amounts. Many agree once they realize we won’t back down easily.
• Defending against lawsuits – If sued over breach of MCA contract, we build strong legal defenses customized to your situation.
• Stopping harassing calls and threats – When MCA funders cross lines with overly aggressive collection attempts, we send cease and desist letters warning them to stop. This usually makes them back off quickly.
• Unwinding or voiding agreements – In some cases, we may identify grounds to legally void or rescind the MCA agreement altogether due to improper actions by the funder.
• Advising on bankruptcy options – Filing business or personal bankruptcy may be an option if debts are untenable. We counsel clients on pros/cons of this approach in relation to MCA debts.

Our firm takes an aggressive posture when advocating for small business clients wronged by unscrupulous MCA lending practices. We know the funders anticipate easy victories over small business owners without legal guidance. We leverage our extensive experience to flip the tables and put you back in control.

Why MCA Funders Can Be So Aggressive

Merchant cash advance loans seem straightforward on the surface – a business gets an upfront lump sum of capital quickly in exchange for agreeing to pay back the funder gradually as a percentage of daily credit card sales over 6-18 months. Easy money, right?Not exactly. Behind the simple premise lies a multi-billion dollar industry fraught with conflicts of interest and incentives that fuel overly aggressive collection attempts against business owners. Here are some of the key reasons why:

Securitizing Loans

• Securitizing MCA loans provides capital for lending but incentives maximizing volume over loan quality
• Bundles of MCA loans get packaged and sold to investors hungry for high returns
• This motivates approvals for riskier loans likely to default

Overreliance on Limited Data

• Approval decisions rely too heavily on a few superficial data points
• Common red flags around total debt burden get ignored
• Shortcuts in due diligence result in loans made that should have been denied

Rushing Due Diligence

• Pressure to approve loans quickly leaves little time for proper vetting
• Loan decision makers compensated based on volume, so speed imperative
• Accelerated process contributes to funding businesses doomed to fail

With so much emphasis put on speedy approvals and ever-increasing lending volumes, red flags around risk get overlooked and soon defaults start piling up. That’s when the aggressive collections machine shifts into high gear with extreme measures taken to squeeze struggling business owners for rapid maximum repayment.

Beware Aggressive Collections Tactics

When defaults occur, MCA funders have extra motivation to collect debts swiftly because of how their underlying financing arrangements are structured. And they often resort to aggressive, legally questionable tactics to accomplish this:

• Empty threats of criminal charges or jail time
• Harassing phone calls day and night
• False claims of ability to seize assets or freeze bank accounts
• Misrepresenting protections under state laws
• Attempts to collect more than legally owed

These high-pressure tactics are deliberately employed to catch struggling business owners off guard and extract payments immediately out of fear. But experienced attorneys well-versed in countering these collection abuses can intervene on your behalf and quickly put an end to harassment while asserting your rights.

How We Fight Back Against MCA Lender Abuses

The attorneys in our firm have negotiated hundreds of MCA agreements and handled countless disputes with MCA funders across the country. We‘ve seen every trick in the book when it comes to collections harassment and legal maneuvering to intimidate business owners. Leveraging this extensive experience, here is how we fight back effectively against MCA lender abuses:

Negotiating Favorable Settlements

The first step is contacting the MCA funder directly and making it clear we represent the business owner regarding the debt and all communications moving forward should flow through our office. The tone of discussions often change quickly once funders realize we are seasoned attorneys prepared to legally defend our client’s interests rather than an isolated small business owner they can easily strong-arm.In many cases, we are able to negotiate reasonable discounted settlements on the outstanding payoff balance once funders understand pushing too aggressively may garner no payments at all. Having attorneys argue these cases makes a big difference compared to when business owners try handling them alone.

Freezing Collections Activities

When funders persist with harassing communications, threats of legal action, or other extreme collection attempts despite being informed of our legal representation, we swiftly counter by sending formal cease and desist letters.These letters advise that further collection activities may violate federal and state consumer protection laws. Unless communications are conducted strictly through legal counsel only, additional efforts to contact our client directly may spur formal legal complaints seeking damages.Freezing collections in this manner shifts leverage in our favor while any potential settlement negotiations commence. And should talks break down, evidence of continued collections interference strengthens legal defenses if a lawsuit is ultimately filed.

Asserting Affirmative Legal Defenses

If settlement discussions reach an impasse and the funder proceeds with filing a lawsuit over alleged breach of contract, our attorneys quickly get to work identifying potential affirmative defenses that may defeat some or all of the claims.Common defenses we frequently invoke against aggressive MCA funders include:

• Unconscionability – Argue one-sided contract terms so unjust no reasonable person would agree absent deception or coercion.

• Fraudulent Inducement – Allege funder misrepresented terms or approval qualifications that induced signing.

• Breach of Covenant of Good Faith – Contend funder did not act reasonably or ethically when enforcing repayment.
• Usury Violations – Interest rates and fees exceeded legal maximums allowed under state laws.

The viability of affirmative defenses depends on the particular state’s laws and judicial precedents regarding MCA loans. Our firm researches case law developments nationwide to identify jurisdictions where courts have issued rulings favoring business owners. We then incorporate these legal arguments into defense strategies that best align with our client’s situation.

Don’t Face MCA Lenders Alone

Standing up to aggressive MCA funders armed with teams of ruthless collections attorneys can be an intimidating and difficult road to travel alone. But by partnering with experienced legal counsel, the balance of power shifts in your favor.Our firm levels the playing field and handles the heavy lifting so you can focus on operating your business. We won’t be intimidated by abusive collection tactics or legal bullying. And with hundreds of cases successfully countering MCA lender harassment and reaching favorable settlements, you can feel confident with us in your corner.If facing aggressive collections pressure from an MCA funder, contact our Columbus office today to schedule a free case review with an attorney. We’ll discuss your situation, offer guidance on best next steps, and outline how we can protect your interests. Don’t endure threats and harassment for another day – legal help is just a call away.