Alaska Merchant Cash Advance Defense Lawyers: Protecting Your Business from Predatory Lending
Are you an Alaska small business owner struggling with a merchant cash advance (MCA)? You’re not alone. Many entrepreneurs turn to MCAs as a quick source of capital, only to find themselves trapped in a cycle of debt with sky-high interest rates and aggressive collection tactics. But there’s hope! Our team of experienced Alaska merchant cash advance defense lawyers can help you fight back against predatory lenders and get your business back on track.At Delancey Street, we understand the unique challenges faced by small businesses in Alaska. Our attorneys have years of experience defending clients against unscrupulous MCA providers and negotiating favorable settlements. We’re here to protect your rights and help you find a path forward.
What is a Merchant Cash Advance?
Before we dive into the legal defenses, let’s break down what exactly a merchant cash advance is:
- An MCA is NOT a traditional loan. It’s technically a purchase of your future credit card receivables.
- The MCA provider gives you a lump sum of cash upfront.
- In exchange, you agree to repay the advance plus fees through daily or weekly deductions from your credit card sales.
- Repayment is based on a percentage of your sales, not a fixed amount.
- MCAs often have extremely high effective interest rates, sometimes exceeding 300% APR!
Sounds simple enough, right? But here’s where things can go TERRIBLY WRONG:
- The daily/weekly repayments can cripple your cash flow
- If sales slow down, you’re still on the hook for payments
- Many MCAs use confusing language to obscure the true cost
- Some providers use predatory collection tactics if you fall behind
That’s where our Alaska merchant cash advance defense lawyers come in. We can help you understand your rights and fight back against unfair practices.
Common Legal Issues with Merchant Cash Advances in Alaska
MCAs operate in a legal gray area, which means there are several potential avenues for challenging them. Here are some of the most common issues we see:
1. Usury Laws
While MCAs claim to be “purchases” rather than loans, courts have sometimes ruled otherwise. Alaska’s usury laws cap interest rates at 10.5% for written contracts (Alaska Stat. § 45.45.010). If we can prove your MCA is actually a loan with an effective interest rate above this limit, we may be able to void the contract or reduce what you owe.
2. Unconscionable Contract Terms
Alaska courts have the power to void contracts that are “unconscionable” or grossly unfair. In Diagnostic Imaging Center Associates v. H & P, 815 P.2d 865 (Alaska 1991), the Alaska Supreme Court outlined factors for determining unconscionability, including:
- Unequal bargaining power
- Hidden or unclear terms
- Lack of meaningful choice
- Terms that are unreasonably favorable to one party
Many MCA contracts tick several of these boxes. We can argue that the terms are so one-sided that they should be unenforceable.
3. Fraud or Misrepresentation
Did the MCA provider misrepresent the terms of the agreement? Were important details buried in fine print? Alaska law protects consumers from deceptive business practices under the Alaska Unfair Trade Practices and Consumer Protection Act (AS 45.50.471). If we can prove the MCA company engaged in fraud or deception, we may be able to void the contract or seek damages.
4. Improper Collection Practices
Some MCA providers use aggressive or even illegal tactics to collect payments. The Alaska Unfair Trade Practices and Consumer Protection Act prohibits many of these practices. If you’ve experienced harassment, threats, or other abusive behavior from an MCA company, we can help you fight back.
How Our Alaska Merchant Cash Advance Defense Lawyers Can Help
Feeling overwhelmed? Don’t worry – that’s what we’re here for! Our experienced attorneys can:
- Review your MCA agreement for potential legal violations
- Negotiate with the MCA provider to reduce what you owe
- Defend against lawsuits or UCC liens filed by MCA companies
- File counterclaims for unfair or deceptive practices
- Explore options for debt relief or restructuring
- Represent you in court if necessary
We understand that every business is unique, which is why we take a personalized approach to each case. Our goal is to find a solution that works for YOU and your business.
Case Study: How We Helped an Anchorage Restaurant Owner
Let’s look at a real-world example of how we’ve helped Alaska business owners (with names changed for privacy):
Sarah owned a popular restaurant in Anchorage. When COVID hit, she took out an MCA to stay afloat. The daily repayments were killing her cash flow, and she fell behind. The MCA company filed a UCC lien and threatened to seize her assets.
Sarah came to us for help. We discovered that the MCA contract had an effective interest rate of over 200% APR and contained several unconscionable terms. We negotiated with the MCA provider, arguing that the contract was unenforceable under Alaska law.
The result? We got the amount owed reduced by 40% and worked out a manageable repayment plan. Sarah kept her restaurant open and is now thriving!
Don’t Wait – Get Help Now!
If you’re struggling with a merchant cash advance, time is of the essence. The longer you wait, the harder it can be to find a solution. Our Alaska merchant cash advance defense lawyers are ready to fight for you.CONTACT US TODAY for a free, no-obligation consultation. We’ll review your case and help you understand your options. Remember, you don’t have to face this alone!Call us at 1-800-DELANCEY or visit our website at https://www.delanceystreet.com to schedule your consultation.Let us be your advocate in the fight against predatory lending. Together, we can protect your business and secure your financial future!
FAQs About Merchant Cash Advance Defense in Alaska
Still have questions? Here are some common ones we hear from clients:
Q: Can I go to jail for not paying back a merchant cash advance?
A: No! MCAs are considered civil matters, not criminal. While the MCA company might sue you or try to seize assets, you can’t be arrested for non-payment.
Q: The MCA company is threatening to contact my customers. Is this legal?
A: In most cases, no. This could be considered harassment under Alaska law. If you’re experiencing this, contact us immediately.
Q: I signed a personal guarantee. Am I personally liable for the MCA?
A: Possibly, but there may be ways to challenge this. Personal guarantees can sometimes be voided if they’re unconscionable or if there was fraud involved.
Q: Can I just file for bankruptcy to get rid of the MCA?
A: Bankruptcy is an option, but it should be a last resort. There may be other ways to resolve your MCA issues without the long-term consequences of bankruptcy.
Q: How much does it cost to hire an Alaska merchant cash advance defense lawyer?
A: We offer flexible fee arrangements, including contingency fees in some cases. This means you may not have to pay anything upfront. We’ll discuss fees during your free consultation.Remember, every situation is unique. That’s why it’s crucial to speak with an experienced attorney who can evaluate your specific case.
The Delancey Street Difference
Why choose our Alaska merchant cash advance defense lawyers? Here’s what sets us apart:
- Experience: We’ve handled hundreds of MCA cases and know all the tricks lenders use.
- Personalized Attention: You’re not just a case number to us. We take the time to understand your business and goals.
- Aggressive Advocacy: We’re not afraid to stand up to big MCA companies and fight for your rights.
- Creative Solutions: We think outside the box to find solutions that work for your unique situation.
- Proven Results: We have a track record of successfully reducing debts and saving businesses.
Don’t let a predatory MCA destroy everything you’ve worked so hard to build. Let us help you take back control of your business and your future.
Take Action Now!
Are you ready to fight back against unfair merchant cash advances? Here’s what to do next:
- CALL US at 1-800-DELANCEY for a free consultation
- Gather all documents related to your MCA (contracts, bank statements, etc.)
- Be prepared to discuss your business’s financial situation
- Ask questions – we’re here to help you understand your options
- Take the first step towards financial freedom!
Remember, the sooner you act, the more options you’ll have. Don’t let fear or shame keep you from getting the help you need.