Merchant cash advance (MCA) settlement scams target small and medium sized-business owners who are already struggling to make ends meet. These scams can be devastating, causing financial ruin. Are you a business owner who is being pressured by an MCA lender and wondering how to protect yourself from a settlement scam?
Common warning signs to watch out for
Unfair settlement practices apply not just to traditional loans but also to secured transactions like MCAs. To avoid scams, you need to know what to look out for during settlement negotiations:
- Upfront fees: The lender may demand upfront fees in exchange for settlement services that are not necessary.
- Guaranteed results: The lender may also promise guaranteed results or a specific settlement amount that is not actually achievable.
- Lack of transparency: The lender may refuse to provide clear information about the settlement process or the terms of the agreement.
- Pressure to act quickly: The lender may pressure you into deciding without giving you enough time to think or seek advice.
Therefore, it is essential to be cautious when dealing with an MCA lender, as they can force you to agree to unfair settlement terms. Knowing the common red flags can help protect yourself from falling victim to an MCA settlement scam.
Seeking an attorney to negotiate on your behalf
An MCA settlement scam can have serious consequences for you and your business. If you are facing pressure from a lender, seeking legal counsel may help safeguard your rights and interests. In addition, an attorney may help you understand your options and negotiate with the MCA lender on your behalf.