Unfair MCA Practices

Growing popularity of Merchant Cash Advances has also led to an increase in unfair MCA practices. The lack of regulation makes it very easy for lender to engage is such practices and get away with it. Our business debt relief lawyers at ZocLaw.com provide discuss a few ways through which you can identify such behavior.

Both on the state level as well as federal government enforce “UDAP” laws that unauthorizes  unfair or deceptive practices or actions. Although very broadly written UDAP laws are designed to give authority to the relevant attorney general or regulator to bring action against a company in violation of UDAP laws irrespective of whether consumers or businesses are hurt. This is evident by recent UDAP enforcements brought forward by several state regulators as well as the federal government against companies that have are illegally leasing credit card terminals to small businesses. Other violations of UDAP include:

  •  Marking advance for a discount rate contingent on conditions that borrowers cannot meet.
  • Providing misleading information in an attempt to trick borrowers.
  • Harassing borrowers in any way.
  • Breaching the MCA agreement.

If you are a victim of lenders that engage in unfair MCA practices, please get in touch with one of our experienced business debt relief lawyers.  MCA provides can be ruthless when borrowers default and will exhaust every avenue to obtain payment.  If you have signed a Confession of Judgment, a Personal Guarantee or an Acceleration clause. A combination of these can result in lenders attaching your personal property if your default on MCA.

During your free initial consultation, we will thoroughly analyze your situation and customize a debt relief strategy that is best suited for your situation. We will also address any questions or concerns you may have. Our lawyers have assisted many clients with: