Merchant Cash Advances (MCA) are high-risk financial products. If your business falls behind on payments, it is not uncommon for the MCA to target your spouse to force a settlement. Here is what you should know to stop them.
What actions cross the legal line?
While merchant cash advances are generally treated differently from consumer debts, MCA companies and their representatives are not necessarily free from all legal restrictions. New York state and federal laws still regulate collection practices. Accordingly, certain actions may raise legal concerns, including:
- Using profane or abusive language
- Calling repeatedly to disrupt daily operations
- Contacting your spouse via automated robocalls without prior consent
- Imposing fabricated service charges or processing penalties.
- Threatening with violence
Such conduct may expose the lender or collector to potential legal claims or regulatory scrutiny.
What should you do now?
If you intend to take the matter to court, documenting concrete proof is important. Consequently, rather than engaging in verbal arguments over the phone, you should focus on establishing a paper trail by taking the following steps:
- Save text messages, emails or other digital communications they sent to your spouse.
- Maintain a detailed call log that records the date, time and frequency of calls made to your spouse.
- Preserve voicemail recordings as abusive audio recordings are invaluable in legal fights.
Gathering this evidence may shift the power dynamic back into your hands.
Why legal guidance may help?
You may be able to bring this situation under control by hiring an MCA defense attorney. They can help you evaluate the communications, advise you regarding your rights and take steps to address improper collection conduct. Further, they may also help go on the offensive by filing a lawsuit against the MCA lender for harassment.