Will the MCA Lender Sue You if You Try to Settle?
Yes, they will. Yes, they’ll try. Yes, they’ll intimidate. But don’t worry—because you can fight with the law, you can fight with the right defense, and you can win. When contracts are vague, weak, or full of loopholes—we find them. An MCA attorney knows where to look, and once we do—we win. Partial victories are victories nonetheless. They matter when they reduce your debt, when they cut down your fees, when they weaken the lender’s grip on your business. One small win adds up to a big difference.
Challenging Contracts: How We Win
We know the law, and the law is clear—MCA contracts often walk a fine line between legality and exploitation. When we attack those unclear terms, when we challenge those vague clauses, when we fight their overreach—we win. I’ve seen it firsthand— in New York, California, and across the country—courts do not favor lenders who exploit loopholes. When we present the facts, when we show the flaws, when we prove the lender’s overreach, judges side with us. Look closer, and you’ll see the weak points. Look closer, and you’ll notice the errors. Look closer, and you’ll understand why we win—because we never miss a flaw.
- New York General Obligations Law § 5-501: Usury laws cap interest at 16%.
- MCA lenders argue they aren’t loans. We argue they are.
- Courts agree—because when the rate is over the limit, it’s illegal.
We fight with the law on our side. In California, under Civ. Code § 1916-2, usury protections apply even if the MCA is structured as a purchase agreement. We argue for fair rates, we argue against excess fees, and when we do, we win—because the law supports us.
UCC Liens and Their Weaknesses
When a lender tries to enforce a UCC lien, we ask—did they file correctly? Did they follow the rules, did they provide the details, did they meet the standards? If not—the lien fails. And we win. I’ve seen lenders trip up on UCC filings, miss details in collateral descriptions, overlook the smallest but most crucial steps. A single mistake means a win for us. We’ve had cases thrown out over tiny errors in filings that seemed insignificant to the lender.
Usury Law Violations
In Florida, under Chapter 687, MCA lenders who violate usury laws can be challenged. I’ve challenged them, and I’ve won. I’ve fought back on behalf of business owners who were exploited. And I’ve saved their businesses. In California, we have strict rules on Confessions of Judgment (COJ). COJs are dangerous—but if improperly enforced, they’re a ticking time bomb for MCA lenders. If they skip a step, we pounce, and we win.
Mistakes Lenders Make
When a lender pushes too hard, they make mistakes. Mistakes are what we wait for, slip-ups are how we win, and attorneys like me are here to catch every one. Every word matters. Every fee, every clause, every percentage point. The more they pile on you, the more likely they’ll overreach. And when they overreach, they fail. We make sure they fail. I’ve seen cases where MCA lenders thought they had it all. But we found fraudulent misrepresentation. They didn’t disclose key details, they didn’t explain the fees. We caught them, and the contract was voided. In New Jersey, N.J.S.A. 12A:9-203 sets standards for secured transactions. If the lender doesn’t follow those standards, we challenge them. If the lien isn’t perfect, we fight it. When we fight, we win.
Fraudulent Inducement: A Legal Tactic
I’ll never forget a case in Texas where we invoked fraudulent inducement. The lender failed to explain the terms clearly. The court ruled in our favor. The debt was erased. The business was saved. That’s why I fight. COJs are supposed to be final, but they aren’t when you have the right attorney. They never are when they’re executed incorrectly. Every delay is to your advantage. Every motion we file is another chance for the lender to make a mistake. We keep pushing, and they keep slipping. This is how we win.
Personal Guarantees: Not as Solid as They Seem
A client of mine, John, faced an MCA lawsuit in Florida. The lender tried to enforce a personal guarantee, but they didn’t disclose the terms properly. We fought back, we challenged the guarantee, and we won. When lenders rely on intimidation, we rely on the law. When lenders push hard, we push back harder. This is why we win. In Washington, RCW 19.52 outlines limits on interest rates. If your MCA lender crosses those limits, we can use it against them. I’ve used it before, and I’ll use it again. This is how the law is on your side.
Lawsuits Are Just the Beginning
Lawsuits are not the end. Lawsuits are the beginning of your fight back. And with the right attorney, you will win. Whether it’s a full victory or a partial one—you will win. MCA lenders want you to think they’ve already won. But I’ve seen over and over how they lose when challenged. They lose when you have the right defense. They lose when you fight. You have to fight. Don’t let them tell you there’s no way out. There’s always a way out. There’s always a defense. There’s always a way to win, even if it’s partial. Even if it’s just one small victory, it’s still a victory.
The Law is Your Shield
The law is your shield. The law is how we defend your business. The law is how we fight MCA lenders. And when we fight, we win. I’ve seen it countless times, and I’ll see it again. This is how we win together.