Chicago, IL Merchant Cash Advance Defense Lawyers
Introduction
Facing a Merchant Cash Advance (MCA) dispute in Chicago? You’re not alone. Many business owners find themselves entangled in the complexities of MCAs, often feeling overwhelmed and uncertain about their legal standing. At Delancey Street, we understand the stress and confusion that comes with these financial agreements. Our experienced team is here to guide you through every step, ensuring your rights are protected and your business can thrive.
Understanding Merchant Cash Advances
Merchant Cash Advances are not traditional loans. Instead, they are financial transactions where a business sells a portion of its future receivables at a discount in exchange for immediate cash. While this might sound straightforward, the reality is often more complicated. MCAs come with high fees and interest rates, and the repayment terms can be aggressive and inflexible. This can lead to significant financial strain on your business, especially if your revenue fluctuates.
Did you know? The average annual percentage rate (APR) for MCAs can range from 40% to 350%. This staggering rate can quickly turn a short-term solution into a long-term financial burden.
Common Legal Issues with MCAs
Many business owners in Chicago have found themselves in legal disputes over MCAs. Common issues include:
- Confusing Contract Terms: MCA agreements are often filled with complex legal jargon that can be difficult to understand.
- Aggressive Collection Practices: Some MCA providers resort to aggressive tactics to collect payments, which can include daily withdrawals from your business account.
- Excessive Fees and Penalties: Hidden fees and penalties can quickly add up, making it nearly impossible to repay the advance.
Hypothetical Scenario: Imagine you own a small restaurant in Chicago. You took out an MCA to cover some unexpected expenses, but now the daily withdrawals are draining your account, and you’re struggling to keep up with payroll. The MCA provider is threatening legal action, and you’re unsure of your options.
Legal Protections and Defenses
At Delancey Street, we specialize in defending businesses against unfair MCA practices. Our experienced attorneys can help you navigate the legal landscape and develop a robust defense strategy. Here are some common defenses we employ:
- Usury Laws: In some cases, the effective interest rate of an MCA may violate state usury laws, which cap the amount of interest that can be charged.
- Breach of Contract: If the MCA provider has not adhered to the terms of the agreement, you may have grounds for a breach of contract claim.
- Fraud and Misrepresentation: If the MCA provider misrepresented the terms of the agreement or engaged in deceptive practices, you could have a valid defense.
Case Law and Legal Citations
Understanding the legal precedents in MCA cases can be crucial in building a strong defense. Here are some relevant cases and legal citations:
- People v. JAG NY, LLC, 18 N.Y.S.3d 812 (N.Y. Sup. Ct. 2015): This case highlighted the aggressive and deceptive practices of some MCA providers, leading to a crackdown on such activities.
- In re: Platinum Rapid Funding Group, Ltd., 2018 WL 3207119 (E.D.N.Y. 2018): This case involved allegations of usurious lending practices disguised as MCAs.
Why Choose Delancey Street?
At Delancey Street, we pride ourselves on our personalized approach and deep understanding of MCA disputes. Our team is dedicated to protecting your business and ensuring you receive fair treatment. Here’s what sets us apart:
- Expertise: Our attorneys have extensive experience handling MCA cases and are well-versed in the nuances of these agreements.
- Empathy: We understand the stress and anxiety that comes with financial disputes, and we’re here to support you every step of the way.
- Results: We have a proven track record of successfully defending businesses against unfair MCA practices.
Call to Action: If you’re facing an MCA dispute, don’t wait. Contact us today for a free consultation and let us help you protect your business.
Conclusion
Merchant Cash Advances can be a double-edged sword for many businesses in Chicago. While they offer quick access to cash, the long-term consequences can be devastating. At Delancey Street, we are committed to defending your rights and helping you navigate these challenging waters. Reach out to us today and take the first step towards securing your business’s future.
References:
Example Source: “The average annual percentage rate (APR) for MCAs can range from 40% to 350%.”
