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North Dakota Merchant Cash Advance Lawyers Can Provide Debt Relief

Running a small business is tough. You have to worry about paying employees, keeping customers happy, managing inventory, and a million other things. With all those plates spinning, it can be easy to lose track of finances and end up in debt. If you took out a merchant cash advance loan and are struggling with high payments, there may be help available. Read on to learn more about merchant cash advances, your rights in North Dakota, and how an experienced business debt relief lawyer can potentially negotiate a settlement.

What is a Merchant Cash Advance?

A merchant cash advance (MCA) is a form of business financing where a company gives you an upfront lump sum of cash in exchange for a percentage of your future credit card and debit card sales. It’s not technically a loan under North Dakota law, but it functions similarly.Here’s a quick example of how an MCA works:

  • Your bakery needs $20,000 to buy some new commercial ovens
  • You agree to pay back $28,000 via an MCA company
  • They give you $20,000 upfront
  • You pay them back by sending 10% of your daily credit/debit card sales every day until you reach $28,000

The appeal is getting quick cash without having to qualify for a bank loan. The risk is that the payments can really add up if sales decline. Some MCA companies charge exorbitant interest rates equivalent to 60-200% APR or more!

Know Your Rights Under North Dakota Law

Merchant cash advance companies aren’t regulated like banks in ND. But that doesn’t mean you don’t have rights or options if you’re struggling with high payments. A few key things to know:

1. No Interest Rate Caps

North Dakota doesn’t cap interest rates on MCAs like they do on payday loans or other lending products. Still, an experienced attorney may be able to argue that outrageous rates constitute unfair and deceptive trade practices under NDCC 51-15.

2. Protections Against Unfair Collection Practices

While MCAs themselves are unregulated in ND, collection activities are not. MCA companies and debt collectors must follow state and federal collection laws. This includes things like:

  • No harassment or threats
  • Limited number of calls per week
  • Required debt validation if disputed

Violations may entitle you to statutory damages per the Fair Debt Collection Practices Act and North Dakota’s debt collection laws like NDCC 13-05.

3. Ability to Dispute & Negotiate

You have every right to dispute the validity of an MCA debt if you believe the company misled you, changed terms without consent, etc. And even if the debt is technically valid, a good lawyer can still try to negotiate a settlement. The MCA company has incentive to take less money upfront rather than get zero if you file bankruptcy.

How Can a North Dakota Business Debt Relief Lawyer Help?

The legal strategies available depend on your specific situation. But a skilled ND debt relief attorney can help in a number of ways, such as:

  • Reviewing your MCA agreement to spot unlawful terms
  • Sending requests to validate the debt
  • Negotiating with the MCA company
  • Helping restructure unsustainable payments
  • Drafting settlement agreements
  • Defending against lawsuits if necessary
  • Advising if bankruptcy could discharge the debt

The right lawyer understands both contract law and the realistic options when a small business gets in financial trouble. Don’t struggle alone when experienced legal help may be available.

Beware MCA Debt Relief Companies

You may also see ads for MCA debt relief companies claiming they can make your payments disappear. Be very wary. Many use dubious tactics that could leave you in even worse shape. A licensed attorney is best positioned to help negotiate debts in a legal, ethical way.





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