Struggling with debt?

Delancey Street Offers a MONEY BACK GUARANTEE for DEBT RELIEF

We’re DelanceyStreet.com, a TOP-TIER business debt relief company. We know what it’s like to be overwhelmed by merchant cash advance (MCA) daily payments, which can crush your cash flow and leave you feeling trapped. But guess what? It’s possible to fight back (yes, it’s possible… but it isn’t easy). You need help from a debt relief company like Delancey Street to help you.

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Regardless of your situation… Regardless of the type of debt you have… Regardless of whether you’re worried about going out of business… we can help you. Our team is EXPERIENCED, DEDICATED, and ready to protect your interests. We have handled all types of debt. Delancey Street helps a small business owner avoid default after halting MCA payments.

Understanding the Big Question

What is an MCA Automated Payment—and Can It Be Stopped Without Defaulting?

Let’s get real: Merchant cash advance lenders rarely like it when a business attempts to pause or stop the daily (or weekly) ACH deductions. From their point of view, halting payments signals you are defaulting. (In many MCA agreements, simply disrupting the automated payment schedule is considered a default!)

Still, there are strategies that can help you stop MCA automated payments without pushing your relationship into meltdown—if you’re armed with the right team and knowledge of the law.

Keep in Mind: Delancey Street offers a money back guarantee for debt relief services because we believe you should see results. We know that if we can’t help, you deserve your money back. We work as hard as possible.

The Legal Framework

Potential Penalties

1. Default Interest and Penalties

   • Most MCA contracts outline immediate penalty fees if you disrupt automated debits.
   • Some lenders stack on additional fees, leading to a higher balance. They also have punitive fees added.

2. Breach of Contract

   • Stopping payments can be deemed a breach, which might trigger legal action.
   • Confession of Judgment (COJ) clauses allow MCA lenders to get a judgment without a full trial (yes, it’s as scary as it sounds).

3. Threat of Lawsuits

   • Under certain state laws, an MCA lender can quickly file a lawsuit if your payments halt.
   • If there’s a personal guarantee, your personal assets might be targeted by the lender, and their attorneys, and it could even be sent to collection agencies.

Relevant Laws

• The Federal Trade Commission (FTC) has a lot resources on unfair lending practices (visit ftc.gov).
• The Consumer Financial Protection Bureau (CFPB) enforces federal consumer financial laws and sometimes helps small business owners (visit consumerfinance.gov).
• The U.S. Small Business Administration (SBA) also offers general guidance on small business financing (visit sba.gov).

Implications in Every Situation

Situation #1: Your Business Still Has Positive Cash Flow
Stopping MCA automated payments if you’re still profitable can be perceived as an attempt to avoid your financial obligations. MCA lenders tend to get ultra-aggressive, because they see you as able to pay and just trying to play games. If you try doing this, and don’t have legal help – from Delancey Street – you could be in for a load of trouble.

Situation #2: You’re Running Out of Money
If your business debt is going out of control, you might want to preserve cash for vital expenses—like payroll or rent. The MCA lender might interpret your payment pause as immediate default, which can lead to legal trouble, lawsuit threats, or leveraging a COJ to freeze your bank account.

Situation #3: You’re Restructuring
Sometimes you want to renegotiate or settle your MCA debt. If you just pause payments without a plan, lenders could file suit, garnish accounts, or sue your personal guarantee.

Situation #4: You’re About to Go Out of Business
Stopping automated payments on your way out can be catastrophic if you haven’t followed legal channels. Lawsuits might continue even after you close the business.

Situation #5: Lenders Already Sent a Default Notice
In this scenario, halting payments can accelerate the default process. Lenders might immediately attempt to collect via COJ or legal means.

Delancey Street saves a business owner over $400,000!

Defense Strategy For MCA Default

We can help you.

Yes, DelanceyStreet.com uses a two-pronged approach which involves attorneys and negotiators. Here’s how we’d defend you:

1. Immediate Lender Outreach

   • We open lines of communication quickly. We send out letters of representation ASAP.
   • We show evidence of your financial position, proactively explaining why you need temporary relief, and why a restructuring of the debt is the only way to make sure the business survives and the lender gets paid.

2. Legal Negotiations

   • We examine your MCA contract for any ambiguous language or loopholes (including factoring in local laws like the Uniform Commercial Code).
   • We explore whether the MCA is truly an “advance” or effectively a business loan disguised as one. (Sometimes, MCAs skirt certain lending regulations—our attorneys know how to challenge that.)

3. Court Defense

   • If a COJ has been invoked or if you’re sued, our sister-law firm can respond rapidly in court, and to the lenders lawyers.
   • We fight to vacate or limit the COJ’s effect, fending off potential lawsuits with thorough documentation.

4. Restructuring or Settlement

   • We can attempt a business debt settlement or merchant cash advance consolidation if you still have a viable operation.
   • We leverage our relationships with MCA lenders (we often know negotiators on a first-name basis) to secure extended terms or reduced balances.

5. Money Back Guarantee

   • Delancey Street stands by our process. If we can’t deliver results, we offer a money back guarantee for our debt relief services.

Some experts argue MCA agreements avoid traditional consumer protection laws, which means they can be attacked on regulatory grounds. With enough complaints and government scrutiny, there could be new legislation or oversight that cripples the MCA industry’s ability to enforce daily draws.

Imagine a scenario where:

• Consumer Financial Protection Bureau imposes strict APR disclosure requirements on MCA lenders.
• Courts reinterpret MCA “advances” as “loans,” making them subject to usury laws.
• Class action lawsuits weaken the more predatory MCA lenders’ contracts, effectively rewriting the legal landscape.

That dismantling might take time. Until then, the daily (or weekly) ACH pull remains a formidable reality for many business owners—hence the need for STRATEGIES OF HOW WE’D DEFEND YOU.

The Bottom Line: We believe open communication, a data-driven approach using your P/L statements, and a willingness to stand up for your rights can create a path out—even if the MCA lenders cling to every last cent.

Practical Strategies for Halting Automated Payments Legally

1. Renegotiate Terms Before You Stop the ACH

   • Call the MCA lender and ask for a reduced repayment schedule.
   • Show them your current cash flow statements to prove your position.
   • Lenders WANT you to make payments. If you speak to them, they will be reasonable—most of the time.

2. Set Up a Formal Forbearance Agreement

   • Sometimes, we can craft a short-term pause in payments.
   • You avoid an outright default by signing an addendum that modifies your repayment plan.

3. Consolidate or Refinance

   • For example, get a business debt consolidation or a line of credit to pay off the MCA.
   • Lower your daily or weekly obligations by consolidating them into one monthly payment.

4. Hire a Business Debt Settlement Team

   • We act on your behalf, approaching the MCA lender with a game plan (maybe a lump sum payoff for less).
   • We have the ability to fend off potential lawsuits—and we know how to negotiate settlement agreements.

5. Check for Potential Violations

   • If the MCA contract is misleading or if the lender engaged in predatory practices, we may argue the entire arrangement is unenforceable.
   • Check the lender’s licensing or compliance with local laws. Some states are cracking down on shady MCA tactics.

Regardless of whether you have multiple MCAs or a single large one, we can help you.

What Should You Do If You’re Trying to Stop MCA Automated Payments?

• Step 1: Gather All Documents (including the merchant cash advance agreement, your bank statements, plus any default notices).
• Step 2: Consult a Debt Relief Attorney or a reputable debt relief team like Delancey Street.
• Step 3: Negotiate or restructure before unilaterally halting the automated debits.
• Step 4: Maintain Open Communication with lenders, so they see you’re acting in good faith.

We Fight. We Protect. We Win.

Disclaimers and Next Steps

This content is for informational purposes only and does not constitute legal advice. Every case is unique. For personalized guidance, reach out to our team or speak to an experienced attorney.

At DelanceyStreet.com, we understand how complicated it can be when you can’t handle the MCA daily payments. We can help you explore different strategies for business debt relief, which may include debt negotiation, formal restructuring, or a settlement that protects your assets.

Money Back Guarantee for Debt Relief

We’re so confident in our approach that we offer a money back guarantee for debt relief services. (How many companies stand by their results like that?). We’re probably the only business debt relief company that offers a money back guarantee for the work we do.

Contact Us Today
Stop drowning in daily ACH pulls. Let us help you find a real solution.
We’re DelanceyStreet.com… available to guide you out of the MCA maze.