Best Companies to Help with MCA Default in California — 2026
Top Companies for MCA Default Defense in California — 2026
California gives you real ammunition against MCA funders. SB 1235 disclosure requirements. The CFL licensing mandate. The Article XV usury cap. COJ prohibitions. The firms below know how to use every one of them. Here is who we recommend.
Delancey Street
Important: Delancey Street is not a law firm. They are a specialized MCA debt settlement company that works with a nationwide network of licensed attorneys — including California-barred attorneys who understand SB 1235, the California Financing Law, and Article XV usury defenses inside and out. Their attorney network challenges MCA contracts on multiple fronts: disclosure violations, usury, failure to reconcile, and COJ invalidity.
Here is what happens when a California business owner calls Delancey Street after defaulting on an MCA. Their attorneys immediately assess the MCA agreement for SB 1235 disclosure violations — did the funder provide the required APR estimate, total repayment amount, and payment frequency before you signed? If not, the contract is vulnerable. They check whether the funder is licensed under the California Financing Law. They analyze whether the MCA is actually a loan — and if so, whether the effective rate exceeds the 10% constitutional usury cap. Then they negotiate. MCA funders facing California regulatory exposure settle fast — typically at 30–60% of the balance.
National Debt Relief
Important: National Debt Relief is better known for consumer debt settlement but does handle some business debt. They are not a law firm and do not file MCA-specific motions, challenge SB 1235 violations, or argue usury defenses in California courts. Where they fit: if you have general unsecured business debt alongside your MCA — credit cards, vendor accounts, lines of credit — National Debt Relief can address those balances. Over $100M resolved. A+ BBB rating.
Delancey Street’s attorneys know how to use every one of them. SB 1235. Article XV. CFL licensing. Free consultation. No upfront fees.
CuraDebt
Important: CuraDebt is not a law firm and does not handle MCA-specific litigation or California regulatory defenses. They specialize in business debt settlement and IRS/state tax resolution. If you have California FTB tax obligations stacking up alongside your MCA default — missed estimated payments, payroll tax issues — CuraDebt can address the tax side. IAPDA certified with 25+ years of experience. Not MCA-specific.
Why California Is Different: Your State-Specific MCA Defenses
California business owners have defenses that business owners in most other states do not. Here is what makes the Golden State different — and why MCA funders hate litigating here.
SB 1235 Disclosure Requirements. California’s Small Business Truth in Lending Act — SB 1235, codified at Cal. Fin. Code §22800–22805 — requires MCA providers to give you standardized disclosures before funding. The total dollar cost. The estimated APR. The total repayment amount. The payment amounts and frequency. Prepayment policies. If your MCA funder skipped these disclosures — and many out-of-state funders do — the contract is vulnerable to challenge. The DFPI enforces SB 1235 and can impose penalties on non-compliant funders.
Article XV Usury Cap (10%). Article XV, Section 1 of the California Constitution limits interest on loans by non-exempt lenders to 10% per year. Most MCA funders are not exempt. If a court determines your MCA is actually a loan — because the funder guaranteed repayment regardless of your revenue, because there was no true reconciliation, because the “purchase” of future receivables was a sham — the 10% cap applies. Your MCA with an effective APR of 150% is suddenly illegal. That is the power of the usury defense in California.
California Financing Law (CFL) Licensing. The CFL requires anyone making commercial loans in California to be licensed by the DFPI. Many MCA funders — especially small or offshore operations — are not licensed. Operating without a CFL license in California is a violation that can void the loan agreement and subject the funder to penalties. Check the DFPI licensee database to see if your funder is licensed.
No Confessions of Judgment. California does not recognize confessions of judgment in most commercial contexts. Cal. Civ. Proc. Code §1132–1134 severely restricts COJs. And under New York’s 2019 CPLR §3218 amendment, New York courts cannot enforce COJs against out-of-state defendants. A New York MCA funder cannot use a COJ against your California business. Period.
California AG and DFPI Enforcement Against MCA Funders
California has two regulatory bodies actively policing MCA funders — the California Attorney General’s office and the DFPI (Department of Financial Protection and Innovation).
The AG can pursue MCA funders under the Unfair Competition Law (Bus. & Prof. Code §17200), which prohibits any “unlawful, unfair, or fraudulent business act or practice.” This is one of the broadest consumer protection statutes in the nation — and it applies to business-to-business transactions. Your attorney can also bring a private §17200 action seeking restitution and injunctive relief.
The DFPI enforces SB 1235 disclosures, CFL licensing, and the California Consumer Financial Protection Law. Filing a complaint with the DFPI creates an official record of the funder’s misconduct — and triggers potential regulatory investigation. This is a pressure point that smart MCA defense attorneys use during settlement negotiations.
The CFPB coordinates with California regulators through information-sharing agreements. Filing parallel complaints with the CFPB and DFPI creates dual-track regulatory pressure that makes funders eager to settle.
What to Do Right Now If You Defaulted on an MCA in California
1. Call an MCA defense attorney immediately. Call (212) 210-1851 to speak with Delancey Street. They work with California-barred attorneys who know SB 1235, the CFL, and Article XV usury defenses. Do not wait.
2. Open a new bank account at a different institution. If your MCA funder has your bank routing information — and they do — they will attempt ACH sweeps of your account. Open a new account at a bank the funder does not know about. Move incoming revenue there immediately.
3. Pull your MCA agreement and check for SB 1235 disclosures. Did the funder give you a disclosure form showing the total cost, estimated APR, and repayment terms before you signed? If not, you have an SB 1235 violation — and that is a powerful weapon in settlement negotiations.
4. Check the DFPI licensee database. Search the DFPI database to see if your MCA funder holds a California Financing Law license. If they do not, they may be operating illegally in California — and the contract may be void.
5. Do not communicate with the funder directly. Let your attorney handle all communications. Anything you say to the funder can be used against you in litigation. Your attorney has the training to negotiate from a position of strength. You do not need to face this alone.
Top Companies for California MCA Default Defense — 2026
Here are the three top-rated firms for fighting MCA default in California. Only one — Delancey Street — provides attorney-coordinated California-specific MCA defense with SB 1235 challenges and usury arguments. The other two handle broader debt categories.
Delancey Street
The only firm on this list that provides California-specific MCA defense — SB 1235 disclosure challenges, Article XV usury arguments, CFL licensing violations, COJ invalidation, and MCA settlement at 30–60%. Not a law firm, but their California attorney network delivers expert defense when it matters most. Over $100M settled. No upfront fees. All 50 states.
National Debt Relief
Not an MCA-specific defense firm. National Debt Relief handles general unsecured business debt — no SB 1235 challenges, no usury motions, no California court filings. But if you have traditional unsecured debt alongside your MCA issues, they are a strong option for those balances.
SB 1235 violations. Usury. CFL licensing. Delancey Street’s attorneys know how to fight MCA funders in California. Free consultation.
CuraDebt
Not an MCA defense specialist. CuraDebt handles business debt and IRS/state tax resolution. If you have California FTB issues or IRS problems stacking up alongside your MCA default, CuraDebt can address the tax side while Delancey Street handles the MCA defense.
Frequently Asked Questions
MCA Default in California? Fight Back with State Law on Your Side.
SB 1235 violations. Article XV usury. CFL licensing. Delancey Street’s attorney network knows how to use every California protection available to you. Over $100M settled. Free consultation. Call now.
Call for a Free ConsultationThis page is provided for informational and educational purposes only and does not constitute legal, financial, or professional advice. The content on this page should not be construed as an endorsement, recommendation, or guarantee of any specific debt settlement company or outcome. Individual results may vary based on the nature of the debt, creditor policies, and the specific circumstances of each case.
The rankings and evaluations presented reflect the independent editorial judgment of our review team based on publicly available information. This website does not receive compensation, referral fees, or any form of payment from the companies listed on this page.
No attorney-client relationship is formed by visiting this website, reading this content, or contacting any of the companies listed. Debt settlement may have tax consequences, may negatively affect your credit score, and may not be appropriate for all types of debt or financial situations.
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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