Chat with us, powered by LiveChat

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.
See also  How Medical Debt Can Impact Your Job Search and Employment

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)
See also  How Medical Debt Can Lead to Social Isolation and Family Conflict

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 AvvoFindLaw, 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.

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
$350,000 MCA Restructured Over 2 Years

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
How to Lower Your Monthly Auto Loan Payment

How to Lower Your Monthly Auto Loan Payment A high…

Boston Merchant Cash Advance Attorney

Boston Merchant Cash Advance Attorney Getting a merchant cash advance…

How To Get Out Of A Merchant Cash Advance – MCA Debt Relief

How to Get Out of a Merchant Cash Advance So…

Getting Free Help with Your Student Loans is Incredibly Easy

Getting Free Help with Your Student Loans is Incredibly Easy…

6 Signs Your Future Spouse Is Bad With Money

  6 Signs Your Future Spouse Is Bad With Money…

Delancey Street simply gets it. You're talking to experts.
Steven Norris
Get Help Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Schedule Consultation