New York's $534M MCA Settlement: What It Means for Borrowers
In November 2023, a major MCA provider agreed to a $534 million settlement with the New York Attorney General over allegations of deceptive lending practices. The case highlighted widespread issues with undisclosed fees, inflated factor rates, and aggressive collection tactics.
What happened
The AG's office alleged that the provider misled small business owners about the true cost of advances, used confessions of judgment to seize assets without due process, and failed to reconcile payments when revenue dropped.
Borrower relief
Part of the settlement includes direct relief to affected borrowers and new compliance requirements for the company. Other states are watching — and several have since introduced or passed similar enforcement actions.
Takeaway
If you have an MCA contract, understanding your true APR and contract terms is more important than ever. Use our free analyzer to see what's in your agreement.
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Confession of Judgment: What It Is and Why It's Dangerous
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FundingWatch Research Team
Our team analyzes MCA contracts, regulatory actions, and borrower rights so small business owners have the facts they need to make informed decisions.