We are DelanceyStreet.com, a top tier business debt relief company that was founded in NYC, who helps clients nationwide. We understand that many small businesses in Charlotte, and throughout North Carolina, use Merchant Cash Advances (MCAs) to stay afloat. These MCA agreements that were designed for quick funding can sometimes lead to legal problems if lenders claim fraud or if the interest rates are found to be unlawful. Our mission is to help you defend your rights, protect your livelihood, and keep your business running.

What is a Merchant Cash Advance (MCA)?
A Merchant Cash Advance is money that was advanced to business owners, who were then obligated to pay a certain percentage of their daily credit card sales to the lender. This funding method, that was meant for fast access to cash, may carry hidden fees and aggressive repayment terms. That can lead to overwhelming debt, which may cause you to miss payments and face potential lawsuits.

Could an MCA Lead to Criminal Charges?
Many MCA disputes are civil, but there are times when allegations become serious. A business owner who was accused of lying about their income or forging documents might end up facing fraud charges under certain circumstances. Allegations like fraud might bring you into contact with law enforcement, who could push for prosecution if they believe you intentionally misled or deceived the lender.

Penalties That Arise if Fraud is Alleged
Fraud charges that stem from merchant cash advance disputes can include fines, restitution, or even jail time in the most serious cases. This means you could be facing state-level or federal-level consequences, including potential charges under North Carolina law or federal statutes like 18 U.S.C. § 1343 (wire fraud). If you want to review federal laws on fraud, you can visit the United States Department of Justice website, which explains how federal prosecutors approach fraud cases.

Potential Usury Violations
MCAs often have factor rates that are extremely high. If a court decides that an MCA is really a disguised loan, you might encounter claims of usury, meaning the interest rate that was charged is above what North Carolina law permits. Under N.C. Gen. Stat. § 24-1, lenders who charge unlawful interest may be committing a violation that leads to civil or even criminal penalties. When an MCA crosses the line into usury, the outcome could involve the court voiding certain provisions of the contract.

Consequences: If a judge rules that the interest rate was unlawfully high, you could have part of your debt reduced. This means your lender would be forced to accept a lower payoff, potentially giving you financial relief. However, if authorities allege criminal usury, the lender might be at fault, and you, as the borrower, may have defenses that challenge the enforceability of the MCA.

Crimes That May Arise During MCA Investigations

1. Fraudulent Misrepresentation
   Fraudulent misrepresentation that was documented in loan applications can lead to charges if a lender or prosecutor believes you intentionally gave false statements. This is serious because fraud that was proven can involve monetary penalties or jail time.

   Consequences: If prosecutors charge you with fraud, you may face stressful court appearances, possible criminal fines, or even prison if convicted. This means you should act fast to get legal help, so your defense is as strong as possible.

2. Check Kiting or Check Fraud
   Some business owners, who were trying to keep up with MCA payments, may bounce checks or engage in questionable banking practices. Check fraud that was brought to the attention of law enforcement can result in prosecution if the conduct is deemed intentional.

   Consequences: When a court finds you guilty of check fraud, you might be subject to restitution, fines, or probation, and in severe cases, incarceration. This outcome means your personal finances can be badly hurt, and your business may suffer permanent damage.

3. Wire Fraud
   Wire fraud that was charged under federal law occurs if the government believes you used electronic communications to defraud the lender. The law, 18 U.S.C. § 1343, is often used when businesses are accused of sending false information via email or digital payment networks.

   Consequences: Wire fraud convictions might include federal prison time, hefty financial penalties, and a criminal record that damages your professional reputation. This can mean the loss of future business opportunities and an inability to obtain new lines of credit.

How We Defend You
Our team at DelanceyStreet.com relies on strategies that were designed to protect you against MCA-related claims. We’ve helped many small businesses, and we understand how to engage with lenders, negotiate better terms, and defend against possible criminal allegations.

Here are key defenses that we often use:

1. Challenging the Evidence That Was Gathered Illegally
   Evidence that was illegally obtained may be inadmissible, and the consequence is that the prosecution’s case becomes weaker. For example, if law enforcement searched your records without a proper warrant, we will argue the evidence is tainted, which might force the government to dismiss charges or reduce them drastically.

2. Arguing the MCA Is Void Due to Usury
   We may demonstrate that the so-called Merchant Cash Advance is actually a traditional loan with an illegal interest rate. That might lead a court to declare the MCA invalid, which means you could owe far less than you were initially told.

3. Showing a Lack of Intent to Commit Fraud
   Fraud requires intent. A business owner who was confused by complicated terms, or who was forced into a desperate financial decision, may not have intended to deceive anyone. Proving there was no criminal intent means the prosecution’s case could collapse, which might result in charges being dropped.

4. Highlighting Violations by the Lender
   Some lenders, who were known to create unfair contracts, might themselves be violating state or federal consumer protection rules. If we can expose a lender’s deceptive practices, this might persuade a court or prosecutor to treat your case more favorably.

Penalties That You Might Face
In North Carolina, you could face misdemeanor or felony charges for certain financial crimes, depending on the amount of money at issue and other factors. You can learn more by visiting the North Carolina Department of Justice website, which explains how state authorities address financial crimes.

Consequences: A criminal record can mean you have trouble finding new work opportunities, renting property, or even qualifying for professional licenses. This type of difficulty could persist for years, which means it may affect your personal life in a serious way.

Why DelanceyStreet.com?

1. Experience That Was Built Over Years
   We have worked with many businesses, who were in tough financial spots, to renegotiate or settle their MCA debt. Our familiarity with lenders and with local legal procedures helps us find efficient strategies.

2. Proven Negotiation Skills
   Our goal is to protect you from aggressive collection tactics and potential legal trouble. We know how to talk to creditors, who might try to intimidate you. This means we focus on solutions that are in your best interest.

3. Nationwide Reach
   Although we are based in NYC, our network is vast, and we can help clients in Charlotte or anywhere else in the country. We understand the local regulations that were put in place to protect consumers, and we also stay on top of federal laws that can impact your situation.

4. Focus on Quick Resolutions
   We want to keep your case from dragging on and on. A speedy resolution that was reached through strategic negotiation can save you from legal headaches and high costs, which may help you get back on track faster.

Case Results and Real-World Outcomes
Often, business owners come to us when they feel cornered by high payments. We negotiate with lenders and point out potential legal violations in their MCA documents. This can lead to drastically reduced balances, meaning you free up more money for day-to-day operations.

If a lender accuses you of fraud, we investigate their claims and the evidence thoroughly. We have found that many lenders who were pressing charges lacked the documentation to prove wrongdoing. That can mean the charges are dropped or never even get filed.

What If You Already Received a Court Summons?
Time is critical. If you do nothing, a lender might move for a default judgment, which can put you at risk of wage garnishments or property liens. This outcome means you lose even more control over your business finances.

Reach out to us as soon as you get served. We will file the appropriate responses, challenge the lender’s claims, and gather proof that was needed to protect your interests. This means you have a chance to fight back on strong legal grounds instead of ignoring the problem.

Tips for Avoiding Further Trouble

1. Communicate Promptly with Lenders
   A lender that was left in the dark might assume you plan to walk away. Stay in communication, and let them know if you’re struggling. That can lead to alternative payment plans instead of lawsuits.

2. Review Every Document Before Signing
   Before you sign any new financing agreement, read it thoroughly. This means you understand the repayment terms and the penalties for default. For more guidance on consumer protection and fair lending, you can visit the Federal Trade Commission (FTC) website, which provides insights on deceptive financial practices.

3. Avoid Fraudulent Actions
   Lying about revenue, forging bank statements, or hiding important information could expose you to criminal charges. Transparency that was practiced from the start can help prevent claims of deception.

We’re Ready to Defend Your Future
At DelanceyStreet.com, we care about small businesses, who are the backbone of communities like Charlotte. We believe you deserve a fair chance to fix your debts, and we are prepared to go head-to-head with lenders who attempt to bully you. If criminal charges arise, we work side by side with experienced attorneys who know local North Carolina laws, as well as federal statutes, inside and out.