D. Giacomo Vilella P.C. MCA Debt Defense
  • (646) 825-3850

Free Quote2020-06-08T20:26:42-04:00

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How Can I Stop a Commercial MCA Debt Collector From Harassing Me?2025-02-19T10:22:40-05:00

If an MCA debt collector is calling excessively, making threats, or pressuring you unfairly, you have legal options to stop them. While MCA debt isn’t covered under consumer protection laws, debt collectors cannot engage in fraud, misrepresentation, or unfair practices. Our firm can:

  • Demand that collectors cease harassment.
  • Challenge unfair debt collection tactics in court.
  • Negotiate settlements or debt restructuring to reduce what you owe.

If you’re being harassed by an MCA collector, contact D. Giacomo Vilella PC for a free consultation and legal assistance.

How can an attorney help with MCA debt collection issues?2025-02-19T10:23:11-05:00

A Merchant Cash Advance debt attorney can help by:

If you are struggling with MCA debt, legal intervention can protect your business and personal assets.

         

Can I sue an MCA lender for predatory lending?2025-02-19T10:23:11-05:00

Yes, if an MCA lender misrepresented terms, charged exorbitant fees, or engaged in fraud, you may have grounds to sue for predatory lending. Courts have ruled against MCA lenders for:

  • Deceptive loan terms
  • Usurious interest rates disguised as purchases
  • Unfair contract enforcement

A legal review of your MCA agreement can determine if you have a case.

Are Merchant Cash Advances considered loans?2025-02-19T10:23:11-05:00

No, MCAs are not loans; they are structured as a sale of future receivables to bypass lending laws. However, they function like high-interest loans, often with repayment rates exceeding 300% APR. This makes them extremely risky for business owners.

Can MCA debt be settled for less than I owe?2025-02-19T10:23:11-05:00

Yes, many MCA lenders are open to settlements, especially if your business is struggling. A skilled debt attorney can negotiate a lump-sum settlement or a revised repayment plan, often reducing the total debt owed. Settlements can prevent lawsuits and help businesses regain financial stability.

What should I do if I get sued by an MCA lender?2025-02-19T10:23:11-05:00

If you receive an MCA lawsuit, do not ignore it. You may have defenses based on:

  • Predatory lending practices
  • Fraud or contract violations
  • Misrepresentation of loan terms

An experienced MCA lawsuit defense attorney can help fight the lawsuit, negotiate a settlement, or dispute unfair collection tactics.

         

How do I stop MCA debt collectors from withdrawing funds from my account?2025-02-19T10:23:11-05:00

You can stop automatic ACH withdrawals by:

  • Revoking ACH authorization with both your bank and the MCA lender.
  • Moving your business funds to a new account.
  • Working with an attorney to legally challenge the agreement.

However, stopping payments without a legal strategy may lead to lawsuits or account freezes. Speak with an MCA debt relief attorney before taking action.

         

Can an MCA lender sue me personally for unpaid debt?2025-02-19T10:23:11-05:00

Yes, many MCA agreements include a personal guarantee, allowing lenders to sue you personally if your business defaults. This means your personal assets, such as your home or savings, could be at risk. If you’re facing an MCA lawsuit, legal assistance is critical to protecting your financial future.

How can I stop MCA debt collectors from harassing me?2025-02-19T10:23:11-05:00

If an MCA debt collector is harassing you with excessive calls, threats, or misleading claims, you may have legal grounds to dispute their actions. While MCA agreements are commercial, not consumer loans, debt collectors must still comply with laws against fraud and deceptive practices. A legal professional can help stop harassment and negotiate better repayment terms.

Can MCA debt collectors freeze my bank account?2025-02-19T10:23:11-05:00

Yes, MCA debt collectors can freeze your business or personal bank accounts, but only if they secure a court judgment against you. If your account is frozen, you may need legal assistance to challenge the judgment, negotiate a settlement, or release the funds.

What is a Merchant Cash Advance (MCA) debt collector?2025-02-19T10:23:11-05:00

A Merchant Cash Advance (MCA) debt collector is an agency or third-party firm hired by MCA lenders to recover unpaid balances from businesses. They may use aggressive tactics, such as frequent calls, lawsuits, or bank account levies, to collect payments. If you’re facing MCA debt collection, legal assistance can help protect your rights.

What does an MCA Debt Strategy Session cover?2025-02-19T10:23:11-05:00

During your complimentary consultation, we review five to six potential strategies for addressing your merchant cash advance debt. We begin by understanding your unique situation and then explain how each option may affect your financial health, both now and in the future. Our goal is to empower you to make an informed decision that benefits your company, family, and personal well-being. If needed, our attorney will provide expert guidance to help you choose the best course of action.

         

 

Is there a free consultation available?2025-02-19T10:23:11-05:00

Yes, we offer a free initial consultation to assess your MCA debt and discuss the best strategy for settlement. This allows you to understand your options with no upfront financial commitment.

         

 

Are there any drawbacks to hiring a debt settlement company for MCA debt?2025-02-19T10:23:12-05:00

Some MCA companies now file lawsuits immediately when approached by a debt settlement company. Additionally, while many companies claim to have in-house attorneys, clients often rarely get direct access or even know who they are. At [Law Firm], you work directly with your dedicated attorney from the start, ensuring personalized and transparent legal representation throughout the process.

What actions can an MCA company do to collect money?2025-02-19T10:23:12-05:00

Before filing a lawsuit, an MCA company may try to use a UCC-1 to go after your clients to take money owed to you. An MCA company may file a lawsuit to obtain a judgment against you. If they prevail, they might take steps such as:

  • Freezing your bank accounts
  • Placing liens on your business or personal assets
  • Securing a court order for repayment
  • Garnishing your wages in most states, particularly if a personal guarantee is involved
How long does the settlement process take?2025-02-19T10:23:12-05:00

The timeline varies based on the complexity of your case, but we work diligently to reach a resolution as quickly as possible. During your free consultation, we’ll provide an estimated timeline tailored to your situation.

What states do you serve?2025-02-19T10:23:12-05:00

We represent clients in the majority of U.S. states. If you’re unsure whether we operate in your area, please contact us for more information.

Do you charge a success fee or take a percentage of the savings?2025-02-19T10:23:12-05:00

No. Unlike some merchant cash advance debt settlement companies, we use a transparent, flat-rate fee structure with no hidden success fees or percentage-based charges, ensuring you receive maximum benefit from our services.

How can your law firm help with MCA debt settlement?2025-02-19T10:23:12-05:00

We specialize in negotiating with MCA creditors to secure more manageable repayment terms that our clients can actually afford. Our experienced team reviews your situation with your creditors, provides transparent upfront pricing, and works to protect your financial interests.

Choose [Law Firm] because:

Experience: We’ve helped clients in similar situations, leveraging up-to-date data to achieve optimal outcomes.

Dedicated Representation: We focus solely on your business interests, offering tailored legal solutions to resolve your MCA debt.

Transparent Pricing: Enjoy clear, upfront flat fees with convenient payment plans for a predictable and manageable process. We do not charge “success” fees or a percentage of what is “saved.”

         

What happens if I lose an MCA lawsuit?2025-02-19T10:23:12-05:00

If the court rules in favor of the MCA funder, they may be able to:

  • Enforce bank account levies
  • Seize business assets
  • Garnish wages (if a personal guarantee exists)
  • File liens on property
What should I do if I receive a court summons from my MCA funder?2025-02-19T10:23:36-05:00
  • Do not ignore it – this can result in an automatic judgment against you.
  • Consult an attorney who specializes in MCA lawsuits.
  • Gather evidence related to your agreement and payments.
  • Consider negotiating a settlement before the case goes to court.
Can I settle my MCA lawsuit out of court?2025-02-19T10:23:36-05:00

Yes, many MCA funders are open to settlement discussions to avoid a prolonged legal battle. You may be able to negotiate a lump-sum payment, reduced balance, or extended repayment terms. A MCA debt settlement attorney can help facilitate negotiations.

How do I respond to an MCA lawsuit?2025-02-19T10:23:36-05:00

You should respond to the lawsuit by filing an answer with the court before the deadline (typically 20-30 days). Failing to respond could result in a default judgment against you. Consulting a lawyer experienced in MCA cases is highly recommended.

Do I Have to Hire an Attorney to Represent My Company in an MCA Lawsuit?2025-02-19T10:23:36-05:00

It depends on the legal structure of your business and the complexity of the case.

  • If you are a sole proprietor, you can represent yourself in court because there is no legal distinction between you and your business. However, it is still advisable to consult an attorney since MCA lawsuits can be complex and involve significant financial risks.
  • If your business is an LLC or corporation, most courts require a licensed attorney to represent the business in a lawsuit. This is because corporations and LLCs are considered separate legal entities from their owners, and courts typically do not allow non-lawyers to represent a business in court.
  • If the lawsuit includes a personal guarantee, meaning you personally guaranteed the MCA, you may need legal representation for both your business and yourself.
Does the MCA lawsuit have to be filed where I live?2025-02-19T10:23:36-05:00

It depends on the contract signed. Most merchant cash advance (MCA) contracts state a choice of venue (Venue Clause) in their contracts. We find most MCA companies choose New York, New Jersey, Connecticut, or Utah as their choice of venue. So if you live in Texas, they will still file a lawsuit in New York if that was in the contract.

What legal actions can an MCA company take against me?2025-02-19T10:23:36-05:00

The funder can file a lawsuit seeking a judgment against you. If successful, they may be able to:

  • Freeze your bank accounts
  • Place liens on business or personal assets
  • Obtain a court order for repayment
  • Garnish your wages in most states (if a personal guarantee applies)
Can an MCA funder sue me personally?2025-02-19T10:23:36-05:00

It depends on your contract. If you signed a personal guarantee, the funder can sue you personally, putting your personal assets at risk. Otherwise, they can only sue your business unless they claim fraud or misrepresentation.

Why am I being sued by my Merchant Cash Advance provider?2025-02-19T10:23:36-05:00

If you’ve defaulted on your MCA agreement, the funder may file a lawsuit to recover the remaining balance. This is often due to missed payments, insufficient funds in your bank account, or an attempt to close your account to prevent withdrawals.

Is the MCA industry regulated?2025-02-19T10:23:36-05:00

Currently, most states have limited regulations for MCAs, leaving business owners vulnerable to predatory practices.

What should businesses consider before signing an MCA agreement?2025-02-19T10:23:36-05:00

Businesses should carefully review the terms, calculate the effective APR, and consult with a financial advisor to assess whether the MCA aligns with their financial goals.

Are there alternatives to MCAs?2025-02-19T10:23:36-05:00

Yes, businesses can explore options such as traditional loans, invoice financing, crowdfunding, and lines of credit, which often have lower costs and more manageable terms. A business loan broker may be able to give you more options.

Why are MCAs considered high-risk?2025-02-19T10:23:36-05:00

MCAs carry high fees, aggressive repayment structures, and a lack of regulatory oversight, making them a costly and potentially dangerous financing option for businesses.

How is an MCA different from a traditional loan?2025-02-19T10:23:36-05:00

Unlike traditional loans, MCAs do not require collateral or a fixed repayment schedule. Instead, repayments are tied to daily or weekly sales revenue.

What is a merchant cash advance (MCA)?2025-02-19T10:23:36-05:00

A merchant cash advance (MCA) is a type of financing where a business receives a lump sum in exchange for a percentage of future credit card sales or future receivables.

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