New York MCA Regulations: What Business Owners Need to Know
Complete Guide to New York MCA Regulations & Debt Relief Protections
Complete guide to New York's MCA regulations and business debt relief laws. Understand your protections under New York law.
New York's MCA Crackdown#
New York has been at the forefront of regulating predatory MCA lending. Recent investigations and regulations have provided new protections for New York businesses, but many business owners don't know their rights.
Understanding New York's specific laws can give you significant leverage in MCA negotiations and settlement.
Key New York Protections#
New York law provides several important protections for businesses dealing with MCAs.
- Confession of judgment clauses are heavily restricted in New York
- MCA companies must be licensed as lenders if they meet certain criteria
- Criminal usury laws apply to some MCA arrangements
- Strong anti-harassment provisions for debt collectors
- Requirement for clear disclosure of terms and costs
- Restrictions on stacking multiple MCAs
- Legal precedents favoring businesses in MCA disputes
Recent Legal Developments#
New York courts and regulators have been increasingly skeptical of MCA companies' claims that they're not lenders. Several recent cases have found that MCAs are actually loans subject to usury laws.
This means some MCAs in New York may be legally unenforceable if they violate usury laws. This creates significant leverage for settlement negotiations.
Using New York Law to Your Advantage#
If you're a New York business dealing with MCA debt, these legal protections can help you achieve better settlement terms. Challenge confession of judgment clauses. Question whether the MCA is actually an illegal loan. Use criminal usury laws as leverage. Demand proper licensing and disclosures. Report violations to the New York Attorney General.