MCA Lenders: Dangerous Predators in Disguise
MCA lenders target, MCA lenders trap, MCA lenders destroy businesses. But Philadelphia MCA Defense Lawyers fight back—every single day, in every single courtroom, for every single business. We’ve saved countless businesses, and here’s how we win. They say it’s an advance, but it’s a loan—plain and simple. They say they’re helping, but they’re hurting. MCA lenders operate in disguise, but we’re here to expose them. We’ve seen it before, we’ll see it again, and we’ll continue to fight them.
Usury Laws and the Truth in Lending Act
Usury laws? They cap interest at 6% in Pennsylvania (41 P.S. § 201). MCA lenders claim they aren’t loans, but when we expose the truth, the courts say otherwise. Time and time again, we use this law to win. And it’s not just about state laws. The Truth in Lending Act (TILA) is our federal shield. MCA lenders fail to disclose key terms, they hide fees, they lie about repayment schedules—we expose it all under TILA. Partial wins? You might think they’re small, but every partial win matters.
Partial Wins Matter
We’ve helped a local trucking company reduce a $500K MCA to $200K. It wasn’t everything, but it was enough to save their business. And that’s the point. It’s enough to save you. Why fight for partial wins? Because partial wins matter. Every dollar saved, every fee dropped, every reduction in payment is a victory. It’s one step closer to survival, one step closer to keeping your business alive. Confessions of judgment are one of their biggest weapons, but we’ve turned it into their biggest weakness. Time after time, we’ve had these overturned. Lenders try to bypass the courts—we bring them back into court.
Precedent and Licensing Violations
Precedent matters. In Merchant Funding v. Reynolds, we saw a confession of judgment overturned due to lender misconduct. That case? That ruling? It’s now a tool in our legal toolbox. We’ve used it to invalidate judgments and keep businesses safe. Licensing violations are another Achilles’ heel for MCA lenders. In Pennsylvania, you need a license to issue loans (7 P.S. § 6201). Guess what? Most MCA lenders don’t have it. When they don’t have it, they can’t enforce that predatory contract. We argue unconscionability—that these contracts are so grossly unfair, they shouldn’t even exist.
Unconscionability and Bad Faith
MCA agreements exploit businesses in distress. We don’t make that argument lightly—we pull from real cases, like Cohen v.. We win by showing the truth. Bad faith? It’s written all over these contracts. MCA lenders default businesses over the smallest technical breaches. But when we show that bad faith? The courts listen. They know the difference between an honest breach and a lender’s manipulation. UCC liens? They lock up your assets, they trap you, but we challenge them. MCA lenders love to file improper UCC liens, but when they don’t follow the rules, we get them invalidated.
UCC Liens and Mistakes
And they make mistakes—oh, do they make mistakes. Improper UCC filings are a death sentence for an MCA lender’s case. We’ve had liens thrown out, freeing up assets for businesses to keep operating. We win because they mess up. Usury laws, again, are our trump card. Pennsylvania caps interest rates for loans (41 P.S. § 201). MCA lenders charge 50%, 60%, 70%—it’s illegal. When we prove it’s a loan, the courts enforce these caps. And we win. We’ve done it. We’ll do it again. In Atlas Funding v. XYZ, the court ruled an MCA was a loan subject to usury limits. We’ve used that ruling in so many cases. It’s a foundational precedent for usury arguments, and it works.
FDCPA Protections
The Fair Debt Collection Practices Act (FDCPA) protects businesses too. Lenders harass, threaten, and intimidate—we push back. We invoke the FDCPA in court and make sure these lenders pay for their bullying tactics. I had a client, a small bakery, about to shut down because of daily MCA withdrawals. We renegotiated the terms, dropped their principal by $60K, and gave them breathing room. It wasn’t everything, but it was enough to keep their ovens running. Another client—a family-run restaurant—was trapped by a confession of judgment. They were going to lose everything. We got it overturned. Now they’re still open, still serving their community. This is why we fight. It’s why we keep winning.
UCC and Good Faith Laws
The Uniform Commercial Code (UCC), specifically 13 Pa.C.S. § 9203, requires a lender to prove attachment to your assets. When they don’t prove it, we fight. We challenge it. We get the lien invalidated. And when the lien’s invalid? You’re free. Good faith matters. Pennsylvania law (13 Pa.C.S. § 1203) requires lenders to act in good faith. When they don’t? When they exploit? We use that against them. Bad faith breaks contracts, and we’ve proven it again and again. Fraudulent misrepresentation is another favorite of ours. MCA lenders hide fees, they mislead businesses about terms, they lie about repayment flexibility. We call them out, we take them to court, and we win because of their own deceit.
