Ohio Merchant Cash Advance Legal Help and Business Debt Settlement
Delancey Street helps business owners struggling with business debt. If you’re struggling, visit our website and learn more.
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visit our website and learn more.
Ohio Merchant Cash Advance Legal Help and Business Debt Settlement
Hey there! I wanted to provide some helpful info for Ohio business owners who might be struggling with merchant cash advances (MCAs). I know these types of loans can really put the squeeze on a small business.First off — are MCAs even legal in Ohio? Good question. The answer is kinda complicated. Basically, they occupy a grey area in the law. They aren’t officially classified as loans in Ohio, so they’ve mostly avoided regulations that protect borrowers. However, some recent lawsuits have argued that MCAs should be regulated as loans based on how predatory and damaging they can be. No definitive legal precedent has been set yet in Ohio though.If you’ve already taken out an MCA and are having trouble making the (often very high) payments, there are a few options to explore:
Debt Settlement
This involves trying to negotiate with the MCA lender to settle for less than the full amount owed. Specialist attorneys can help with this. Here’s a good overview of the process.The key is getting experienced legal help on your side. MCA companies often use aggressive, intimidating tactics to get paid — it helps to have lawyers ready to stand up to them.
Legal Defenses
There are various legal arguments attorneys can make to fight unfair MCA contracts. Two big ones are:
- Usury laws — Claiming MCA rates are illegally high interest under state laws. Needs to prove it’s a “loan”.
- RICO claims — Arguing the MCA operates an illegal predatory scheme. Can nullify the agreement.
Check out this example case where MCA lenders got smacked with RICO claims and banned from the industry.
So in summary — MCAs occupy a grey area legally but may still be beatable with the right legal tactics. Connect with experienced attorneys ASAP if you’re struggling to pay one back. Act fast before the MCA goes nuclear with threats, harassment and lawsuits.Hope this gives a helpful starting point! Let me know if any other questions.
