Are you worried about a merchant cash advance lawsuit that was filed against you in Ohio? Do you feel like your business is falling behind on daily, or weekly, MCA payments? We can help you.

At DelanceyStreet.com, we’re a top tier business debt relief company that helps clients across the nation, including in Ohio. Today, we’re here to talk about Ohio MCA Defense Lawyers and how they can protect you, your business, and your assets from the penalties that often follow missed or defaulted merchant cash advances.

<u>Who Are We?</u>
We are DelanceyStreet.com, a premier, and award winning, firm that focuses on helping business owners who are dealing with potential lawsuits due to merchant cash advance defaults. Our team of advisors and attorneys is familiar with the Ohio legal framework, and we know how to create a strong strategy that can help you settle or defend your MCA obligations.

UNDERSTANDING MERCHANT CASH ADVANCES IN OHIO

A merchant cash advance, that was created for businesses needing quick funds, is not a traditional loan. It’s technically a purchase of your future receivables. Because of this difference, some MCA providers may claim that certain state laws and lending regulations don’t apply. Regardless, if you’re in Ohio, you still need to follow relevant laws that were passed to protect consumers and businesses alike.

Visit the Ohio Attorney General’s official website (https://www.ohioattorneygeneral.gov/) if you want more information on consumer protection, and see the Ohio Revised Code (https://codes.ohio.gov/) for legal statutes that relate to contracts, deceptive trade practices, and more.

WHY MERCHANT CASH ADVANCES CAN BECOME A PROBLEM

A merchant cash advance may feel like a quick fix. But that quick fix can become toxic debt if business slows down. If you can’t make your scheduled payments, the MCA provider might sue you. One lawsuit that was filed can lead to:

• Enforced Judgments: A judgment that was obtained by the creditor can result in wage garnishments or bank account levies.
• Higher Fees and Default Rates: If you’re late, there could be additional costs that make your debt even bigger.

When judgments are enforced, the result might be shutting down your business. This can mean you lose everything you worked so hard to build, and that’s a consequence that can have a lasting effect on your personal financial health.

<u>FLOW CHART OF COMMON SCENARIOS</u>

Example Scenario -> Unexpected Default -> COJ or Lawsuit Filed -> Creditor Seeks Judgment -> Potential Bank Levies / Business Seizure

Step 1: Example Scenario
A merchant cash advance that was meant to cover extra inventory for the holiday season.

Step 2: Unexpected Default
Sales slow down, and you fall behind on the MCA’s daily deduction.

Step 3: COJ (Confession of Judgment) or Lawsuit Filed
Because you missed payments, the MCA provider may file legal documents swiftly, or try to enforce a confession of judgment in states that allow it. Ohio usually requires an actual lawsuit, but some MCA companies still attempt to use COJs.

Step 4: Creditor Seeks Judgment
The creditor that was providing the MCA wants a default judgment. This means the court finds in their favor if you don’t respond properly.

Step 5: Potential Bank Levies / Business Seizure
A judgment that was granted might allow the MCA provider to freeze bank accounts, garnish business revenue, or seize assets.

When these steps happen, the consequence can be catastrophic: You might lose your business.

PENALTIES, CRIMES, AND PUNISHMENT

Ohio courts often treat MCA defaults as a breach of contract, which is usually a civil matter. However, there are times when criminal allegations might come up—especially if there is suspicion of fraud. Fraud that was committed by falsifying financial documents could lead to criminal charges in Ohio. According to the Ohio Revised Code, penalties for fraud-related offenses can include hefty fines and, in severe instances, possible prison time.

If you’re found responsible for civil breach of contract, the consequence can be money damages that include the entire unpaid amount, plus legal fees, plus interest. If the court believes you engaged in willful deceit, you can face additional fines or punitive damages.

Below is how potential crimes and punishments may be structured:

• Misrepresentation that was intentional: Could be seen as fraud, leading to possible criminal charges (under the Ohio Revised Code Section 2913, which addresses theft and fraud). The result might be fines or jail time, depending on the severity and the amount of money.
• Writing bad checks that were used to secure the MCA: May be prosecuted under separate Ohio statutes about bounced checks. The result might involve restitution, fines, or criminal penalties, if proven intentional.
• Avoiding court orders: Refusing to pay a lawfully issued judgment that was handed down can lead to contempt of court. The result might be additional fines or even incarceration in serious cases.

STRATEGIES OF HOW WE’D DEFEND YOU

When it comes to MCA lawsuits in Ohio, we have several strategies:

1. Reviewing the Agreement
   We look for potential violations that were made by the MCA provider. If the contract has hidden fees, unconscionable terms, or deceptive language, we might argue the agreement should be unenforceable. The consequence of an unenforceable contract can be a full dismissal of the lawsuit.

2. Challenging the Interest or Factor Rate
   If the MCA is charging a rate that was far beyond Ohio’s usury limits (in cases where a court sees an MCA as a “loan”), we can argue that the rate is illegal. The result can be a significant reduction in what you owe, or even a voided contract.

3. Arguing Lack of Personal Guarantee
   Some MCA agreements contain personal guarantees. If we can show that the guarantee was signed under pressure, or that it’s overly broad, we might get the court to invalidate it. The result of invalidating a personal guarantee can keep your personal bank account safe if the business cannot pay.

4. Negotiating an Amicable Resolution
   Sometimes, a settlement that was negotiated before trial is in your best interest. We can try to reduce the overall balance or spread out payments. The consequence is that you might stay in business, keep personal assets, and get rid of the lawsuit quickly.

5. Proving Fraudulent Tactics by the MCA Provider
   If the MCA provider used misleading advertising or harassing collection strategies, we’ll gather evidence that was obtained to prove their wrongdoing. The result might be the court awarding damages to you, or invalidating the entire agreement.

WHY DELANCEYSTREET.COM IS DIFFERENT

We bring a two-pronged approach to merchant cash advance lawsuits. On one hand, we have experienced negotiators, who understand how MCAs work and how to find leverage that was created by your situation. On the other hand, we have attorneys, including leadership who was admitted to practice law in multiple states, ready to defend you in court.

Here’s what we do for our clients in Ohio:

• Immediate Assessment: We review your financials and the contract that was signed. We’re searching for hidden traps.
• Communication with Creditors: We open lines of communication and show them your situation. Often, they’d rather get something than force your business to close.
• Aggressive Legal Defense: If a lawsuit was filed, we respond fast. This can prevent a default judgment.
• Ongoing Support: We keep you updated on everything. If a new suit arises, or if a settlement that was proposed isn’t fair, we pivot quickly.

We always say the bottom line is that you need a plan, and that plan must protect both your business and your personal assets.

HOW PENALTIES AND CONSEQUENCES IMPACT YOU LONG-TERM

If you wind up with a judgment that was filed against you, the result can follow you for years. Collections, garnished revenue, or even liens on your property can block you from getting new financing. Further, your business reputation might suffer, and potential partners could see you as a risky investment.

FAQ: FREQUENTLY ASKED QUESTIONS

1. Can I Go to Jail for Not Paying an MCA?
   Typically, failing to pay a debt is civil, not criminal. But if you commit fraud, or bounce checks intentionally, you might face criminal charges that were brought under Ohio law.

2. What if I Ignore the Lawsuit?
   Ignoring a lawsuit that was served can cause the court to issue a default judgment against you. The result might be garnishments, seizures, or forced collections.

3. How Long Does the Process Take?
   It depends. Sometimes, we can reach a settlement that was amicably agreed upon in a few weeks. Other times, lawsuits drag on for months or longer.

4. Where Can I Learn More about Ohio Laws?
   You can go to https://codes.ohio.gov/ for official references. If you suspect fraud or deceptive practices, the Ohio Attorney General’s website has resources as well.

TAKING THE NEXT STEP

If you’re facing an MCA lawsuit in Ohio, or if you sense that one is about to be filed, don’t wait. The problem can get bigger if you delay. Call us, at DelanceyStreet.com, so we can help you. We want to review the agreement, figure out which defenses might apply, and explore any possible settlement. If a settlement is impossible, we’re ready to defend you in court.