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When an MCA broker lies about your terms, the damage is brutal — you're paying way more than you were told, daily debits are draining your account faster than you expected, and fees you never agreed to are eating your cash flow alive. The firms below are ranked by how well they build fraud claims, pursue contract rescission, and use the broker's lies as a weapon to negotiate the best possible settlement.
Important: Delancey Street is not a law firm. They're a specialized MCA debt settlement company that works with a nationwide network of licensed attorneys who handle fraud in the inducement claims, contract rescission, COJ vacatur based on fraudulent misrepresentation, and MCA settlement negotiations. When a broker lied about your terms, their attorneys build the case — lining up the broker's promises against what the contract actually says — and use that evidence to fight for you in court and at the negotiating table.
Here's why this defense is so powerful — it attacks the foundation of the entire agreement. If the contract was obtained through fraud, the confession of judgment you signed as part of that contract is tainted too. Delancey Street's attorneys have used broker misrepresentation to vacate COJs, void MCA contracts, and negotiate settlements at 20–50% of the claimed balance. They know how state consumer protection statutes, common law fraud principles, and MCA industry dynamics all work together.
Important: National Debt Relief is not a law firm and doesn't handle MCA fraud claims, broker misrepresentation cases, or contract rescission. They're the largest debt settlement company in the country — over $1 billion in debt settled, A+ Better Business Bureau rating. If your MCA situation gets resolved and you're also carrying traditional unsecured business debt — credit cards, vendor accounts, lines of credit — National Debt Relief can handle those.
Important: CuraDebt is not a law firm and doesn't handle MCA broker fraud claims, contract rescission, or misrepresentation cases. They're a debt resolution company with 25+ years in business debt and IRS/state tax resolution. If you've also got tax problems alongside the MCA fraud situation, CuraDebt can handle the tax piece while Delancey Street fights the MCA fraud defense. IAPDA certified, thousands of business owners helped.
MCA broker misrepresentation isn't some rare thing — it's baked into the industry. Brokers earn commissions of 5–15% of the funded amount. That's an enormous incentive to say whatever it takes to close the deal. Here are the lies they tell most often:
Factor Rate vs. Interest Rate Confusion. This is the #1 trick. A broker tells you the "rate" is 1.35 or "35 percent," and you naturally think that means a 35% annual interest rate. In reality, a 1.35 factor rate on a 6-month advance translates to an effective APR of roughly 70%. The broker knows this. They use vague language on purpose to hide the true cost.
Hidden Fees and Origination Charges. A lot of MCA agreements include origination fees, admin fees, and wire fees that get deducted from the advance before you see a dime. A broker promises you $100,000 but the contract has $15,000 in fees — so you get $85,000 while owing $135,000. The Truth in Lending Act requires these disclosures for traditional loans, but most MCA funders claim TILA doesn't apply to them.
Reconciliation Promises. The broker tells you daily payments will adjust based on your actual revenue — "if business is slow, your payments go down." But the contract has fixed daily ACH debits with no reconciliation, or a reconciliation clause so restrictive it's worthless. That's a material misrepresentation — you signed because you expected flexible payments.
Undisclosed Confession of Judgment. This might be the most dangerous lie of all — failing to explain, or flat-out hiding, the confession of judgment (COJ) provision. Brokers tell you to "just sign here" without ever mentioning that the COJ lets the funder get a court judgment against you without notice or a hearing. The NY Attorney General's enforcement actions against predatory MCA funders have called out the failure to disclose COJ provisions as a deceptive practice.
Your attorney has several legal theories to go after an MCA agreement that was obtained through broker lies. Which one fits depends on your specific facts.
1. Fraud in the Inducement. Under common law, a contract is voidable if you were tricked into signing it. The elements: (a) a false statement of material fact; (b) the person knew it was false or didn't care; (c) they intended for you to rely on it; (d) you actually did rely on it; and (e) it caused you damage. When a broker passes off a factor rate as an interest rate, hides fees, or buries the COJ — every one of those elements is met.
2. Fraudulent Concealment. Even if the broker didn't outright lie, deliberately hiding material facts — the confession of judgment, the true cost of capital, the absence of a reconciliation provision — can still be fraudulent concealment. This theory hits hardest when the broker had a duty to disclose and intentionally kept information from you that would have changed your mind.
3. State Consumer Protection Violations. Most states have UDAP statutes (unfair and deceptive acts and practices) that go further than common law fraud. Under New York's General Business Law §349, you don't even need to prove intent to defraud — just that the conduct was misleading and caused injury. Many UDAP statutes also allow treble (triple) damages and attorney's fees — which gives you massive use in settlement talks.
4. Contract Rescission. If fraud is proven, the court can unwind the entire MCA agreement — as if it never happened. Under rescission, you'd only owe back the amount you actually received (the advance minus fees), not the inflated payback amount in the contract. Any payments you already made get credited. In a lot of cases, borrowers have already paid back more than the original advance.
5. Agency Liability. Under agency law, the MCA funder can be held responsible for the broker's lies. This matters because the broker might be judgment-proof (no money, no assets), but the funder has deep pockets. If the broker was acting within the scope of the agency relationship with the funder, the funder owns the fraud.
Several states have enacted commercial financing disclosure laws that require MCA brokers and funders to provide clear, standardized disclosures to borrowers. These laws create additional legal bases for challenging misrepresentation.
New York. The New York Commercial Financing Disclosure Law requires MCA funders and brokers to disclose the total repayment amount, estimated APR, total cost of financing, prepayment terms, and all fees. Violations of this law provide an independent basis for legal action and strengthen fraud claims based on broker misrepresentation.
California. California’s SB 1235 imposes similar disclosure requirements on commercial financing providers, including MCA funders. Brokers operating in California must provide written disclosures of total repayment amount, APR, and all fees before closing.
Virginia and Utah. Both states have enacted commercial financing disclosure statutes that require standardized cost disclosures for MCA products. These laws are modeled on the SBA’s recommendations for transparent small business lending and provide additional enforcement mechanisms for borrowers who received inaccurate or incomplete disclosures.
Even in states without specific MCA disclosure laws, common law fraud principles and general UDAP statutes provide strong protections against broker misrepresentation. The absence of a specific disclosure law does not give brokers a license to lie about terms.
The strength of your case comes down to documentation. Here's how to build it.
Step 1: Preserve All Communications. Go through every email, text message, voicemail, and messaging app conversation with the broker. Screenshots count as evidence. Focus on any message where the broker described the rate, fees, payment terms, or reconciliation — especially where what they said doesn't match the contract.
Step 2: Compare Promises to Contract. Put what the broker told you side-by-side with what the signed MCA agreement actually says. Focus on: the factor rate vs. what you were told; the total payback amount; the daily/weekly payment; whether there's a reconciliation clause; all fees; and the confession of judgment provision.
Step 3: Calculate the True Cost. Work with your attorney to figure out the effective APR. If the broker told you the "rate" was 35% but the effective APR is 150% — that gap is devastating evidence of misrepresentation. The Office of the Comptroller of the Currency and other regulators have published guidance on calculating effective APR for commercial financing products.
Step 4: Find Other Victims. MCA brokers who lie to one borrower are lying to many. Check online reviews, BBB complaints, and CFPB complaint databases for other business owners who got burned by the same broker. A pattern of misrepresentation makes your individual case stronger and may trigger a broader enforcement action.
Here are the three top-rated firms for business owners whose MCA brokers lied about the terms in 2026. Only Delancey Street does attorney-coordinated fraud claims and contract rescission. The other two handle broader categories of business debt.
The only firm on this list that does attorney-coordinated fraud claims and contract rescission for MCA broker misrepresentation. They build the documentary case, file fraud claims, pursue COJ vacatur, and settle MCA debt at 20–50%. Not a law firm — but their attorney-coordinated model delivers both legal action and negotiated results. Over $100M settled. No upfront fees. All 50 states.
Not an MCA fraud specialist. National Debt Relief handles general unsecured business debt — credit cards, vendor accounts, lines of credit. No fraud claims, no contract rescission. But if the MCA situation is resolved and you're also carrying traditional unsecured debt, they're a proven option.
Not an MCA fraud specialist. CuraDebt handles business debt and IRS/state tax resolution. No fraud claims, no contract rescission. If you've also got tax problems alongside the MCA situation, they can handle that piece.
You signed based on lies. That changes everything. Delancey Street's attorney network builds fraud claims, pursues contract rescission, and settles MCA debt at 20–50%. Over $100M settled. Free consultation.
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Delancey Street is not a law firm. Delancey Street works with a nationwide network of attorneys and debt specialists who handle MCA defense, business debt settlement, and related services. Any attorney services referenced on this page are provided by independent, licensed attorneys within the Delancey Street network — not by Delancey Street directly.
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