Have you signed a merchant cash advance agreement that was filled with hidden fees, scary confession of judgment clauses, and unfair interest rates? That kind of document can trap you in toxic obligations. The toxic obligations can lead to notices of default and even lawsuits. Our goal is to help you keep your business alive, and show you how using the court system might give you a chance to invalidate an MCA agreement that was predatory. We are DelanceyStreet.com, a top tier business debt relief company, and we help clients nationwide.

WHAT MAKES AN MCA AGREEMENT “ABUSIVE”? An agreement that was written to take advantage of you can cause enormous stress. The stress can create serious cash flow issues for your business, and result in daily repayment schedules that never end. A lender who was engaged in abusive tactics might include extremely high factor rates, confusing language, or demands for personal guarantees. Those tactics can subject you to overwhelming debt, and it can cause your business to fail. If your MCA includes these types of unfair provisions, you might have legal grounds to challenge it in court.

LEGAL CONSEQUENCES FOR PREDATORY MCA PROVIDERS Some MCA providers who are predatory can face civil or even criminal penalties. Those penalties can include hefty fines, restitution orders, or restrictions on future lending activities. In certain states, usurious interest rates can be classified as criminal offenses, and that can lead to prosecution by local authorities. If the MCA provider committed fraud, that wrongdoing can result in even harsher punishments, including possible jail time for those who orchestrated it.

For more information on predatory lending and consumer protection, visit the Federal Trade Commission at https://www.ftc.gov or the Consumer Financial Protection Bureau at https://www.consumerfinance.gov.

STRATEGIES FOR USING THE COURT SYSTEM When you decide to go to court, a judge who is presented with evidence of unfair practices may invalidate or reform your MCA agreement. If the judge invalidates the agreement, you might not owe the remaining balance. That outcome can save your business from default, and it can preserve your cash flow. Below are a few strategies we use:

• Arguing Usury: A contract that was found to have illegal interest rates can be declared void. That ruling can stop the lender from enforcing the debt against you.
• Proving Fraud or Coercion: A contract that was signed under deception may be struck down. That decision can free you from harmful repayment terms.
• Challenging Confession of Judgment Clauses: A COJ that was filed unfairly might be overturned. That relief can protect your bank accounts from random garnishments.

CRIMES AND PUNISHMENTS RELATED TO ABUSIVE MCAS A lender who was charging sky-high rates without proper disclosures may violate both state and federal laws. That violation can lead to charges of fraud or deceptive business practices. If the MCA provider threatened physical harm, extorted you, or lied about court filings, those actions can rise to the level of criminal activity. Once charged, the individuals involved can face trial, fines, and even imprisonment.

HOW WE DEFEND YOU We have a team of attorneys who are experienced in business debt settlement and litigation. Our attorneys can do the following steps to defend you:

1. Review Your Agreement
   We look for hidden fees and abusive terms that were buried in the fine print. That discovery can help us craft strong legal arguments.

2. File Lawsuits and Motions
   We file legal actions that were designed to challenge predatory lenders in court. Those actions can stop aggressive collection attempts and can invalidate harmful contracts.

3. Negotiate With Creditors
   We have negotiators who are skilled at reducing principle balances and lowering interest rates. That settlement can allow your business to regain its cash flow.

POTENTIAL OUTCOMES AND CONSEQUENCES A judge who was shown proper evidence may throw out a large portion of your debt. If that debt is thrown out, it means you can immediately regain financial stability. If your MCA agreement is deemed unenforceable, that finding can protect your business from default judgments or bank account freezes. If the lender is found guilty of wrongdoing, that ruling can empower you to seek damages or restitution.

WHY DELANCEYSTREET.COM IS DIFFERENT We are DelanceyStreet.com, a top tier business debt relief company. We believe in open communication and data-driven strategies. We have a sister-law firm that was founded by an attorney named Steven Raiser, which means you benefit from a two-pronged approach: legal strength and business negotiation experience. We pride ourselves on personalizing each case, because we know your business is unique.

KEY GOVERNMENT RESOURCES

• Federal Trade Commission (FTC): https://www.ftc.gov
• Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov
• Small Business Administration (SBA): https://www.sba.gov