Omaha Merchant Cash Advance Legal Help – Attorneys Provide Debt Settlement Advice
Merchant cash advances (MCAs) can seem like quick and easy money for small business owners, but they often come with predatory terms and interest rates over 100%. If your Omaha business took out an MCA and is now facing legal threats or aggressive collection tactics, don’t panic. You have rights and options. This guide will cover the basics of MCA laws in Nebraska, potential defenses business owners can raise, and how to find an attorney to help negotiate a settlement or defend you in court.
The Legal Landscape of Merchant Cash Advances in Nebraska
Merchant cash advances occupy a legal gray area in many states, with laws and regulations still catching up to this relatively new lending product. However, some basic legal principles still apply:
-- No usury cap – Unlike payday loans, MCAs are not subject to Nebraska’s usury laws capping interest rates at 16% APR for loans under $1,000 (Neb. Rev. Stat. § 45-101.03). However, excessively high rates can still be challenged as unfair or deceptive.
- No licensing requirements – MCA providers do not need a license to operate in Nebraska like short-term lenders do. However, they must still follow federal lending and debt collection laws.
- Protections for business owners – The FTC’s Cooling-Off Rule gives business owners 3 days to cancel contracts over $25 signed outside the office. The right of rescission under TILA may also apply.
So while the MCA industry remains largely unregulated in Nebraska, some consumer protections still apply. And state lawmakers have shown interest in reining in predatory lending practices through legislation like LB 237 in 2017.
Potential Defenses Against MCA Lawsuits
If an MCA provider sues your business for nonpayment, all hope is not lost. Here are some potential defenses Omaha companies can raise:
- Unconscionability – Argue the contract terms were unjustly one-sided or the interest rate outrageously high. This can invalidate the agreement.
- Deceptive conduct – Misrepresentations about costs or other key terms could make the contract voidable.
- Breach of contract – If the MCA company didn’t uphold its end of the bargain (failing to promptly provide the agreed-upon advance), you may not have to either.
- Improper debt collection practices – Threatening language or false statements to collect could violate federal and Nebraska debt collection laws, providing leverage in settlement talks.
The viability of these defenses depends a lot on the specific facts involved. An experienced business attorney can help you understand which arguments fit your situation best.
Finding Legal Help Defending Against Predatory MCAs
If you feel overwhelmed or unsure how to respond to an MCA provider’s aggressive collections or lawsuit, don’t go it alone. Consult an attorney who handles cases like yours. Look for lawyers with specific experience helping clients fight back against predatory lending practices.The Nebraska State Bar Association and sites like Avvo can help you find qualified local lawyers. Key specialty areas to look for include:
-- Commercial litigation
- Contract disputes & negotiations
- Consumer protection
- Debt settlement, creditors’ rights
- Bankruptcy (if considering this option)
Initial consultations are often free or low-cost. An attorney can review your case, explain your rights and options, negotiate with the MCA provider, and represent you in court if necessary. The right lawyer makes all the difference in achieving a fair settlement or judgment.
Don’t Face Predatory Lenders Alone – Consult a Lawyer Today
Merchant cash advances carry risks many small businesses don’t fully appreciate at first. But shady lending practices shouldn’t go unchallenged. If an MCA provider has treated your Omaha company unfairly or is aggressively pursuing collection, fight back. An experienced legal advocate can help level the playing field.Hopefully this overview gave you a better understanding of your rights and defenses when dealing with predatory MCA tactics. The lawyers at Avvo, FindLaw, and other sites stand ready to advise and represent business owners facing these issues. Don’t hesitate to schedule a consultation and discuss your situation confidentially. With an attorney’s help, you can negotiate a fair settlement or build a strong case in court.