We are Delancey Street.

We’re a premier, and award winning, business debt relief company based out of NYC, that helps clients nationwide. We have immense experience working with business owners who are facing legal issues related to merchant cash advances (MCAs). If you’re worried about a lawsuit or feel like you’re drowning in MCA debt, then keep reading, because we can help you.

What is a Merchant Cash Advance?
A merchant cash advance is not a typical loan. It’s an advance that was originally designed to help businesses who were dealing with urgent cash flow problems. In many cases, the MCA provider gives you a lump sum, and you repay that provider by letting them take a portion of your daily or weekly credit card sales. This can seem easy at first, but it might lead to huge debt if your cash flow drops.

Why is This Important to Understand?
Because an MCA that was set up poorly can cripple your finances. When you default, the MCA provider might sue you. That lawsuit can lead to judgments, wage garnishments, or even aggressive collection practices. If you have a confession of judgment in the agreement (often called a “COJ”), the provider might enforce it the moment you miss a payment. This means you might face garnished business income, frozen accounts, or a damaged reputation.

Penalties and Potential Crimes
Many business owners who were struggling with MCA debt ask: “Could I be facing criminal punishment?” Typically, an MCA involves civil debt. But if there is alleged fraud—like providing false statements, misrepresenting revenue, or hiding assets—there might be criminal charges under certain circumstances. Penalties that were imposed by Oklahoma courts can include large fines or restitution. If prosecutors believe there was deliberate fraud, they can also file charges that lead to jail time.

You can learn more about how Oklahoma handles commercial disputes by visiting the official Oklahoma State Courts Network. If fraud is suspected, the Oklahoma Attorney General’s Office might investigate (see https://www.oag.ok.gov for reference). When we say the word “fraud,” we’re talking about lying, deceiving, or intentionally providing false statements in order to get an MCA that was never going to be repaid as promised.

Evidence that was illegally obtained will be thrown out. As a result, the plaintiff (the MCA provider) might have to rely on less evidence, which can weaken their case against you. If evidence that was illegally obtained is thrown out, it might also force the MCA provider to consider settling under better terms, since they can’t use that piece of evidence to prove a breach.

Crimes and Punishment
Sometimes, business owners ask, “Is it a crime to miss an MCA payment?” Usually, it’s not a crime. It’s a civil matter if you just can’t pay. But if you intentionally took out an MCA by forging financial statements, the District Attorney might charge you with fraud. A conviction that was based on fraud can lead to criminal records, large fines, and possible jail time. This can create lifelong problems, such as trouble finding future financing or new business partners.

CONSEQUENCE OF A FRAUD CONVICTION: You might be forced to pay restitution. You might lose your professional licenses. You might even face probation that disrupts your ability to run your company.

Common Strategies: How We Defend You
We at Delancey Street have attorneys who were carefully selected for their ability to navigate MCA cases. Our approach typically involves:

1. Contract Review: We review any contracts that were signed. We look for illegal clauses, hidden fees, and potential breaches of lending laws. If there’s a clause that was unfair, we will use it as leverage in negotiations.
2. Evidence Analysis: We check whether the MCA provider has evidence that was legally obtained. If they got information from shady collection tactics, we push to have it thrown out.
3. Negotiations with Creditors: We have immense experience talking to creditors. Many creditors want to resolve issues without lengthy lawsuits. Negotiations can result in new payment plans, reduced totals, or extended deadlines. We get it—sometimes you need more time to focus on your business.
4. Litigation Defense: If the case goes to court, we’ll argue that the MCA terms were unconscionable or that the provider violated Oklahoma’s business statutes. We’ll bring up every legal defense possible, including lack of proper notice, errors in the contract, or questionable interest rates.

We Fight, We Protect, We Win.

Oklahoma City Merchant Cash Advance Lawsuits:

Example Flowchart:
Example -> Missed MCA Payment -> Lawsuit from MCA Provider
Situation -> Accusation of Fraud -> Possible Criminal Charges
Cause -> Damaging Reputation -> Higher Difficulty Getting Future Financing

This flowchart shows how a single missed payment can snowball into multiple legal consequences. The final line, Higher Difficulty Getting Future Financing, can follow you for years.

Why You Need MCA Defense Attorneys
Many business owners assume they can handle MCA providers alone. Sometimes, that can lead to big mistakes. For example, if you accidentally admit liability in writing, the lender can use that as proof you owe the full amount. If you miss a filing deadline in court, you might lose the chance to argue your defenses.

A skilled MCA defense attorney who was trained in debt negotiations can protect your rights. This attorney can:

• File counterclaims if the MCA provider engaged in predatory lending
• Argue that the factor rates were disguised as illegal interest rates
• Present evidence that your business never agreed to certain clauses

Creditor Harassment
Some MCA providers call incessantly or threaten to contact your customers. This can hurt your reputation in the local community. If a creditor that was overstepping breaks federal or state law, we can push back. The Federal Trade Commission (FTC) has guidelines about fair collection practices (see https://www.ftc.gov/). In Oklahoma, a court might order the MCA provider to stop if they violate harassment rules.

Statement + Consequence Example

• Statement: Creditors that were found guilty of harassment can face fines.
• Consequence: If the court rules in your favor, you might be awarded damages.

Penalties for Violating MCA Agreements
In civil court, a judge who was reviewing your contract can decide you owe the MCA provider the entire balance plus fees and interest. If you lose, the MCA provider could get a judgment that allows them to garnish your business bank account. In some cases, they might even target personal assets, depending on whether you signed a personal guarantee.

If there’s any claim of wrongdoing or criminal intent, the punishments that were authorized by Oklahoma law can include probation, financial penalties, and (in extreme cases) incarceration. This is why having an experienced legal team can be the difference between keeping your business afloat or shutting down.

We Use Data and Strategies
We rely on up-to-date financial statements that show your business cannot afford the original payment terms. By demonstrating your hardship, we can sometimes persuade creditors to accept a partial payment. This means you pay less than the full amount, and the creditor agrees to mark the debt as settled. If you don’t show them proof, they might not believe how serious your financial issues are.

Self-Representation vs. Professional Assistance
Some people try to defend themselves. They approach the court or the MCA provider alone. As a result, they might lose out on beneficial settlement options, because they don’t know how to present their case. Attorneys who were working in MCA defense have seen all kinds of tactics used by creditors, from filing lawsuits in faraway jurisdictions to including aggressive contract terms. Without legal help, you might sign a disadvantageous agreement.

We at Delancey Street have a sister-law firm that can handle every aspect of your defense. The advantage is you get a two-pronged approach: we use practical negotiation strategies to lower your debt, and our attorneys handle potential legal fallout if the MCA provider sues.

Crucial Reminders

1. Early Action Helps: If you see trouble brewing, contact us before a lawsuit is filed. This can save you from more severe penalties, like default judgments.
2. Check for a COJ: A confession of judgment that was signed by you can speed up the creditor’s ability to garnish your accounts. We can argue to vacate a COJ if there was fraud or misrepresentation in the contract.
3. Maintain Good Records: Keep copies of every email, payment, or letter from the MCA provider. These records might help prove that you tried to act in good faith.

FAQ: Is This a Real Crime?
Many business owners wonder if missing MCA payments is a real crime. Usually, it’s just a contractual default. But if the lender accuses you of forging documents or lying about your revenue, that can lead to criminal investigations. The best way to avoid trouble is to talk to attorneys who can defend you early on.

We Stand Ready to Help
We get it: you’d rather spend time running your business instead of dealing with endless calls from creditors. MCA debt can be fixed if you have the right team. We excel in negotiating with MCA providers, because we have attorneys who were directly involved in similar lawsuits. When we fight for you, we focus on keeping your business operational, and we aim to reduce or restructure what you owe.

Official References for More Information

• Oklahoma State Courts Network – for info on court cases and dockets.
• Oklahoma Attorney General – for updates on state enforcement actions.
• Federal Trade Commission – for guidelines on fair collection practices.

Consequences of Ignoring Your MCA Debt
If you do nothing, you might face a lawsuit that results in a judgment. Once the court issues a judgment, the MCA provider can garnish bank accounts, seize assets, or place liens on your business property. If you’re a sole proprietor, they might even reach personal items. This means you could lose crucial equipment, or your personal credit score might drop.

Oklahoma City MCA Defense Lawyers: Our Philosophy
We believe in open communication. We call creditors immediately to explain your situation and show how a large payment might drive you out of business. We push for negotiated terms that allow you to stay afloat. Our job is to protect your rights, reduce your stress, and help you keep your company alive.

If You’re Facing MCA Trouble, We Can Help You
Whether it’s a civil lawsuit or a threat of criminal charges, Delancey Street is here. We have attorneys who were trained in business debt relief and who can stand by you from start to finish. We put your interests first, and we use data-driven arguments to show creditors and courts that the debt must be restructured.

At the end of the day, we want to empower you and your business to thrive.