Best Companies to Help with MCA Default in New York — 2026
Top Companies for MCA Default Defense in New York — 2026
New York MCA defense is not a job for generalists. You need attorneys who know these courts, these judges, and the specific procedural rules that govern MCA litigation in this state. Here is who we recommend.
Delancey Street
Delancey Street is not a law firm. They are a specialized MCA debt settlement company with a nationwide network of licensed attorneys — including New York-barred attorneys who practice in the very courts where MCA cases live and die. Their attorney network handles usury defenses, COJ vacatur under CPLR §3218, default judgment motions, reconciliation challenges, and settlement negotiations with MCA funders. This is their arena.
Here is how it works for New York business owners. Delancey Street’s attorneys know every New York MCA funder — their litigation patterns, their settlement tendencies, their weak spots. They tear apart your MCA agreement looking for loan recharacterization — does the contract guarantee repayment regardless of revenue? Is there a true reconciliation mechanism? If the MCA is a disguised loan, they build the usury defense. Criminal usury above 25% (Penal Law §190.40). Civil usury above 16% (GOB §5-501). MCA funders facing usury charges in their home state? They settle fast — typically at 30–60% of the balance.
National Debt Relief
National Debt Relief is better known for consumer debt settlement, though they handle some business debt. They do not file usury motions, COJ challenges, or handle MCA-specific litigation in New York courts. That is not what they do. Where they fit: general unsecured business debt alongside your MCA. Over $100M resolved. A+ BBB rating.
Delancey Street’s attorneys practice in the same courts where MCA funders file. Criminal usury. COJ vacatur. Free consultation.
CuraDebt
CuraDebt does not handle MCA-specific litigation or New York usury defenses. Not their fight. They specialize in business debt settlement and IRS/state tax resolution. If you have NY State tax issues or IRS obligations piled on top of your MCA default, CuraDebt can address the tax side. IAPDA certified. Not MCA-specific.
Why New York Is Ground Zero for MCA Defense
New York is where the MCA industry was born, where it lives, and where it litigates. Most funders are headquartered in New York City or Long Island. Most MCA agreements contain New York forum selection and choice-of-law clauses. Most COJs are filed in New York county courts. This is the battlefield — and the law here is on your side.
Criminal Usury: Penal Law §190.40. New York makes it a class E felony to charge interest exceeding 25% per year. That is not a civil penalty — it is a criminal offense punishable by up to 4 years in prison. If your MCA is recharacterized as a loan and the effective APR exceeds 25%, the funder has committed criminal usury. This is the most powerful defense available to New York MCA defendants. MCA funders know it. Their attorneys know it. It is why they settle.
Civil Usury: GOB §5-501. New York General Obligations Law §5-501 sets the civil usury cap at 16% per year for most transactions. A usurious loan is void and unenforceable — the borrower owes nothing. Not a reduced amount. Nothing. If the MCA is a loan with an APR above 16%, the entire contract is void under New York civil usury law. That is the nuclear option.
CPLR §3218 COJ Reform (2019). Before 2019, MCA funders filed thousands of confessions of judgment against out-of-state businesses in New York county courts — without notice, without a lawsuit, without any opportunity to respond. The 2019 amendment to CPLR §3218 prohibited COJs against out-of-state defendants and imposed heightened requirements for in-state COJs. This was a landmark reform.
NY AG Yellowstone Capital Action. In 2020, New York Attorney General Letitia James sued Yellowstone Capital — one of the largest MCA funders — alleging it operated as an illegal lender. The AG argued that Yellowstone’s MCAs were loans because repayment was guaranteed regardless of business revenue, there was no true reconciliation, and the “purchase of receivables” structure was a sham. This case established critical precedent for recharacterizing MCAs as loans — subjecting them to usury caps.
The Loan vs. Purchase Test in New York Courts
Every New York MCA case comes down to one question: is the MCA a loan or a true purchase of future receivables? If it is a loan, usury caps apply — and the funder is in serious trouble. If it is a true purchase, they do not. New York courts look at three key factors.
1. Is repayment guaranteed regardless of revenue? If the MCA agreement requires you to pay back a fixed amount regardless of how much revenue your business generates, it is a loan. A true purchase of receivables ties repayment to actual revenue — if the business fails, the funder loses money. If the funder bears no risk, it is not a purchase. It is a loan.
2. Is there a meaningful reconciliation mechanism? The MCA agreement almost certainly contains a “reconciliation” provision that says daily payments will be adjusted based on actual revenue. But did the funder ever actually reconcile? Did they ever reduce your daily payment when revenue dropped? If reconciliation existed only on paper — and the funder refused to honor it — the court can recharacterize the MCA as a loan.
3. Did the funder file a personal guarantee? If the MCA required a personal guarantee — making you personally liable regardless of business performance — that is strong evidence the funder bore no risk. No risk means it is not a purchase. It is a loan. Subject to usury.
What to Do Right Now If You Defaulted on an MCA in New York
1. Call an MCA defense attorney immediately. Call (212) 210-1851 to speak with Delancey Street. They work with New York-barred attorneys who practice in the courts where MCA cases are filed. Do not wait.
2. Check the NY eCourts system for any filings. Search the NY eCourts system for any lawsuits or COJ filings in your name. MCA funders often file without notice. You need to know what is out there.
3. Open a new bank account at a different institution. MCA funders will attempt ACH sweeps and bank levies. Move your banking to a new institution. Protect incoming revenue.
4. Gather your MCA agreement and bank statements. Your attorney needs the MCA contract, the daily withdrawal history, and any communications from the funder. This is the evidence that proves the MCA is a disguised loan.
5. Do not communicate with the funder directly. MCA funders in New York are aggressive. Their collection attorneys are aggressive. Let your attorney handle all communications. That is what they do.
Top Companies for New York MCA Default Defense — 2026
Three firms. Only one — Delancey Street — provides attorney-coordinated New York-specific MCA defense with usury challenges and COJ vacatur. The other two handle general debt. They cannot fight this fight.
Delancey Street
The only firm on this list that fights New York MCA cases where they are won and lost — criminal usury (Penal Law §190.40), civil usury (GOB §5-501), COJ vacatur (CPLR §3218), and MCA settlement at 30–60%. Not a law firm, but their NY attorney network knows these courts cold. Over $100M settled. No upfront fees.
National Debt Relief
Not an MCA defense firm. They handle general unsecured business debt — no usury motions, no COJ challenges, no NY court filings. If you have traditional unsecured debt alongside your MCA, they are solid for that.
Delancey Street’s attorneys fight MCA funders in New York courts every day. Free consultation.
CuraDebt
Not an MCA defense firm. They do business debt and IRS/state tax resolution. If NYS tax or IRS issues are piling on alongside your MCA default, CuraDebt handles that piece.
Frequently Asked Questions
MCA Default in New York? Fight the Funders on Their Home Turf.
Criminal usury. Civil usury. COJ vacatur. Delancey Street’s attorney network fights MCA funders in New York courts every day. 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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