If you’re overwhelmed with debt owed on business loans, it’s
time to stop losing sleep and call our office to learn how we can help.
As you'll see in this case highlight, our office will leave no stone
unturned in working to get the best results possible for our client's.
Defaulted Business Loan with OnDeck Capital, Inc.
Our office was contacted by a distressed business owner that took a loan with
OnDeck Capital in New York. Although the borrower had already paid back nearly $80,000
on the business loan, he wound up defaulting with an outstanding balance of about
OnDeck Capital had filed a Uniform Commercial Code (UCC-1) statement in
connection with the financing arrangement. The purpose of filing the UCC-1
is to perfect the lender’s security interest in collateral.
This small business owner was experiencing cash flow problems and had several
other loans, both personal and business. If he couldn’t get help
quickly, he’d be at risk of running out of the capital needed to
operate his business. Not knowing who to turn to for reliable guidance,
he consulted with the Law Office of Simon Goldenberg PLLC and retained
us for help with restructuring and
reducing business debts.
Get Out Of Business Debt!
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Letter From On Deck Capital Threatening Litigation
The borrower received a letter from OnDeck Capital’s general counsel
threatening to possibly file a lawsuit if the loan debt wasn’t resolved.
The letter further threatened that if a lawsuit is initiated, the borrower
might be obligated to pay additional interest, court costs, and attorney’s fees.
Furthermore, the letter stated that it is providing information pursuant
to the Fair Debt Collection Practices Act (15 U.S.C. 1692g). However,
attempts to collect business debts are generally exempt from the FDCPA,
and the disclosures on the letter did not appear to conform to anything
required under the FDCPA. In the opinion of our lawyer, the inclusion
of the confusing statutory reference made in the letter was most likely
to increase the tone of seriousness in order to encourage prompt repayment
by the borrower.
Resolving the Defaulted Business Loan with OnDeck
In our communications with the agents at OnDeck Capital Inc., we painted
a picture of the hardships our client’s business is experiencing.
We feel it’s important to let the lender know that the borrower
is trying to act in good-faith to resolve the debt and that the intentions
are sincere. If OnDeck would think that the borrower is acting in bad-faith,
they may be more reluctant to discuss a resolution, and might consider
taking more drastic collection action sooner (such as seizing secured
assets or bringing a lawsuit).
Ultimately, On Deck Capital agreed to accept a one-time payment of nearly
$8800.00, which reflects a
reduction of 85% from the balance. Upon satisfying the settlement, OnDeck filed a UCC-3 statement which
essentially terminated the security interest on the collateral.
Negotiating Business Loan Settlement Reductions
At our firm, we understand the unique challenges faced by businesses and
we work to provide solutions catered to our client's particular needs.
If your business is struggling to stay afloat and you're interested in
negotiating business loans, call us to learn if we could help reduce your business loan debts and
keep your business operating, all while avoiding bankruptcy.
Contact our firm at (888) 301-0584 to schedule your
free business debt relief evaluation.
Results vary; prior results do not guarantee similar performance. While
we strive to maintain accuracy and provide relevant case histories, in
order to protect the confidentiality of our client(s), all numbers are
approximations and are offered for illustrative and general informational
purposes only. This page does not purport to contain any legal advice.
We make no allegation of wrongdoing by the entities discussed on this
page. Call us for an evaluation of your situation.