NH MCA Defense Lawyers

Introduction and Basics

Are you struggling with a Merchant Cash Advance (MCA) in New Hampshire? You’re not alone. Let’s talk about how MCA defense lawyers can help you fight back! First things first: What’s an MCA? It’s not a loan, but a purchase of future receivables. This distinction is crucial for legal defenses. MCA companies often use aggressive tactics to collect. But guess what? You have rights! NH lawyers can help protect you.

Consumer Protection Laws

One key law in NH is the Consumer Protection Act (RSA 358-A). It prohibits unfair or deceptive business practices. MCA lawyers can use this to your advantage! For example, in Ellis v. Fidelity Capital Holdings (2019), the court found that certain MCA practices violated RSA 358-A. This precedent can help your case! NH has strong small business protections. The NH Small Business Development Center offers resources that MCA lawyers can use to support your case. Did you know? NH law (RSA 358-A:2) lists specific unfair practices. MCA lawyers can check if your case fits any of these. It’s like a legal scavenger hunt! The NH case Becksted v. Nadeau (2005) clarified what counts as “unfair” under RSA 358-A:2. MCA lawyers can use this to strengthen your case.

Usury Laws and Loan Regulations

Did you know? NH has usury laws (RSA 336:1) capping interest at 10%. If your MCA looks like a loan with higher rates, lawyers can challenge it! “But wait,” you say, “MCAs aren’t loans!” True, but if it walks like a duck and quacks like a duck… NH courts might see it differently. In 2008, NH passed the Small Loan Lender License law (RSA 399-A). It regulates small loans. Smart lawyers can argue MCAs should fall under this. Fun fact: The NH Banking Department issued a warning about predatory lending practices in 2020. This shows the state is aware of the issue!

Unconscionability and Good Faith

MCA defense lawyers can use the doctrine of unconscionability. It’s a legal principle that protects against unfair contracts. In NH, unconscionability is recognized in common law. The landmark case Pittsfield Weaving Co. v. Grove Textiles (1984) established this. MCA lawyers can argue that the terms of your agreement are so one-sided that they’re unconscionable. Courts can then modify or void the contract! Another tool in the MCA lawyer’s toolkit? The doctrine of good faith and fair dealing. It’s implied in every NH contract. The NH Supreme Court case Centronics Corp. v. Genicom Corp. (1989) emphasized the importance of good faith in contracts. MCA lawyers can use this! If the MCA company’s actions seem unfair or in bad faith, your lawyer can argue they’ve breached this implied covenant.

Confessions of Judgment and Fraud

Let’s talk about confessions of judgment (COJs). Many MCAs include these. But in NH, they’re not enforceable in consumer transactions! NH law (RSA 361-A:7-a) prohibits COJs in certain contracts. MCA lawyers can use this to challenge any judgment based on a COJ. Did the MCA company misrepresent terms? That’s fraud! NH law (RSA 638:1) defines fraud, and MCA lawyers can use this to build a strong defense. In the case State v. Guglielmo (2014), NH courts clarified elements of fraud. This precedent helps MCA lawyers prove misrepresentation.

UCC Liens and Debt Collection Practices

MCA companies often file UCC liens. But did you know? In NH, you can terminate a wrongfully filed lien (RSA 382-A:9-513). Lawyers can help with this! NH also has laws against unfair debt collection practices (RSA 358-C). If MCA companies cross the line, your lawyer can call them out! The federal Fair Debt Collection Practices Act also applies in NH. It provides additional protections against harassment.

True Sale Doctrine and Bankruptcy

MCA lawyers can use the “true sale” doctrine. If the MCA looks more like a loan than a sale, they can argue it should be treated as such. The NH case In re LTF Real Estate Company (2020) discussed “true sale” in bankruptcy context. MCA lawyers can apply similar logic! Here’s a big one: NH recognizes “equitable subordination” in bankruptcy cases. This can help lower the priority of unfair MCA claims! The NH Bankruptcy Court case In re SPM Manufacturing Corp. (1992) applied equitable subordination. MCA lawyers can use this precedent. MCA lawyers can also argue “recharacterization” in bankruptcy. This means treating the MCA as a loan, not a sale. Game-changer!

Additional Legal Strategies

NH also recognizes “tortious interference with contract.” If an MCA disrupts your other business relationships, lawyers can pursue this claim! The NH Supreme Court case Tessier v. Rockefeller (1998) outlined elements of tortious interference. MCA lawyers can use this as a guide. Here’s a powerful tool: NH’s “Unfair Insurance Practices Act” (RSA 417). Some MCA practices might fall under this, giving you extra protection! In Howe v. Preston Insurance Agency (2003), NH courts interpreted RSA 417 broadly. This helps MCA lawyers make creative arguments! NH also has laws against “business opportunity scams” (RSA 358-E). In some cases, MCA lawyers might argue that predatory MCAs fit this definition! The NH case State v. Fleet Mortgage Corp. (2000) dealt with RSA 358-E. It shows NH courts take predatory business practices seriously!

Federal Laws and Conclusion

Don’t forget about federal laws! The Truth in Lending Act can apply if your MCA is really a disguised loan. NH lawyers can use this too! In the case Klock v. Caze (1997), NH courts recognized federal preemption in lending cases. This opens up more options for MCA defenses! Remember, MCA defense is complex. But with the right lawyer and NH’s strong consumer protection laws, you’ve got a fighting chance! Don’t give up!