Merchant Cash Advance Lawsuit

Merchant Cash Advance Lawsuit

What to Expect if You Are Served with a Lawsuit by Your MCA lender

If an MCA lender decides to sue you for unpaid debt, it’s important to be prepared and know what to expect. Here is a list of things that you might encounter in this situation:

  • A summons and complaint delivered to you in person or through the mail that states your creditor’s claim against you
  • An answer or response from you is due within 20 days of receiving the summons and complaint
  • A court hearing may be held afterward if both parties don’t agree on a settlement
  • An order to pay a certain amount mandated by the court if your creditor succeeds in their case against you
  • Interest is charged on any unpaid balances where allowed by law
  • Legal fees incurred as a result of engaging in litigation/court proceedings

In addition, depending on your creditor’s actions, they may also pursue collection activities such as garnishing wages, placing liens on property, or repossessing collateral associated with the loan. If any of these happen, make sure to consult an attorney regarding your rights.

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