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If you're a South Dakota business owner dealing with an MCA mess — confessions of judgment, UCC-1 liens, personal guarantees, daily ACH debits draining your account — you need a firm that lives and breathes this world. South Dakota has no general usury cap (SDCL §54-3-1.1 effectively deregulates interest for licensed lenders), so New York law defenses are your best weapon — since that's where most MCA contracts are governed. Here are the three best options in 2026.
Here's what you need to know: Delancey Street is not a law firm. They coordinate with a nationwide network of licensed attorneys who do the actual fighting — COJ challenges, usury defenses, UCC lien disputes, funder negotiations. Their attorney network is built around New York’s dual usury framework — which governs the vast majority of MCA contracts regardless of whether your business operates in Sioux Falls, Rapid City, or Aberdeen. This is what they do.
Their attorneys don't just negotiate — they challenge. They file motions to vacate confessions of judgment, raise criminal usury defenses when effective APRs exceed 25%, dispute overbroad UCC-1 filings with the South Dakota Secretary of State, and use the NY Attorney General’s $1 billion Yellowstone Capital settlement as precedent in funder negotiations. Over $100M in commercial debt settled. No upfront fees. Results-based pricing.
Not an MCA defense specialist — and they'll tell you that straight up. National Debt Relief is the largest debt settlement company in the United States, with over $1 billion settled and 550,000+ clients served. They handle general unsecured business debts — credit cards, vendor accounts, lines of credit — but they don't challenge confessions of judgment, file usury defenses, or dispute UCC liens. If your South Dakota business debt is traditional unsecured debt and not MCA-specific, they're a proven option. If you're dealing with MCA funders, COJs, or frozen accounts — you need a firm with MCA-specific attorney involvement.
Not an MCA defense specialist either. CuraDebt handles business debt and IRS/state tax resolution — they've been doing it for over 25 years. If your South Dakota situation involves both MCA debt and tax obligations, CuraDebt can handle the tax side while a firm like Delancey Street handles the MCA defense. They don't challenge COJs, raise usury defenses, or file legal motions against MCA funders.
Let's cut to it. MCA defense is about one thing — stopping funders from destroying the business you built. We're talking confessions of judgment, UCC Article 9 liens, personal guarantee enforcement, and daily ACH withdrawals that bleed your account dry. This is not general debt settlement. The tools are different. The counterparties are different. The timeline is different.
South Dakota makes this especially tricky. The state is one of the most lender-friendly jurisdictions in America — SDCL §54-3-1.1 effectively killed the general usury cap for licensed lenders, which is why Citibank moved its credit card operations to Sioux Falls in the 1980s. South Dakota state law won't protect you from high-cost MCA products. But here's the thing — most MCA contracts designate New York as the governing jurisdiction. And New York's criminal usury cap kicks in at 25% APR. That's your weapon.
The agreement you signed is written entirely in the lender's favor — we have yet to see a single MCA contract that is fair. You're not getting any help from the agreement itself. That's why you need an attorney who knows how to attack the contract from the outside: usury challenges under NY law, procedural defects in COJ filings, unconscionability arguments, and the growing body of case law reclassifying MCAs as loans.
Here's what happens — and it happens fast. Your bank account gets frozen. A UCC lien shows up filed with the South Dakota Secretary of State. Maybe a confession of judgment gets entered against you before you even know it was filed. Defaulting on an MCA isn't like traditional default — it's governed by Uniform Commercial Code (UCC) Article 9 provisions, and it moves on a completely different timeline.
For South Dakota business owners, the consequences are immediate: frozen accounts at local institutions, liens on receivables, personal asset seizures if you signed a guarantee. From ranching operations in the Black Hills to retail shops in Sioux Falls — MCA funders target businesses with strong daily revenue but limited access to traditional bank financing. You need a defense attorney before the funder takes everything off the table.
South Dakota permits confessions of judgment under SDCL §15-15-7, but they must comply with specific procedural requirements. Here's the key: many MCA funders file COJs in New York rather than South Dakota — and the 2019 CPLR §3218 reform banned NY courts from enforcing COJs against out-of-state defendants like you.
Strategy 1: Challenge the COJ in court. Was it executed improperly? Courts have voided COJs where lenders failed to attach signed affidavits, where notarization was missing, or where the borrower didn't knowingly waive their rights. Your attorney files an Order to Show Cause to stay enforcement and argues the COJ violates due process or contains procedural defects under either SD or NY law.
Strategy 2: Negotiate post-default. Lenders always prefer repayment over litigation. Litigation is expensive — and the lender knows that even if they win, you could file for bankruptcy in the U.S. Bankruptcy Court for the District of South Dakota and they get nothing. Use that as a weapon. Offer a lump-sum settlement — 30–50% of the balance — from refinancing or asset liquidation.
You took a second MCA to pay the first. Now the daily payments eat 30% of your revenue. Under UCC § 9-607, lenders can stack UCC-1 liens on receivables filed with the South Dakota Secretary of State — which makes it impossible to get new financing of any kind. For South Dakota's agricultural businesses, tourism operators, and seasonal enterprises that depend on cyclical revenue, this is a death spiral.
Strategy 1: Consolidate via Ch. 11 or federal law. Chapter 11 filed in the District of South Dakota lets you pause collections and reclassify MCAs as unsecured debt. Courts have allowed businesses to discharge MCA obligations by arguing they were disguised loans. Since South Dakota has no state usury cap for licensed lenders, the federal bankruptcy route and New York usury arguments become your primary tools.
Strategy 2: Use your cash flow reality as a weapon. Provide lenders with 6 months of bank statements showing unsustainable withdrawals. Paint a clear picture: settle now, or risk getting $0.00 when the business collapses.
Here's what nobody tells you: lenders assume you're lying about your finances. Every single time. That's why you need a firm that knows how to present the evidence in a way funders can't ignore — a combination of facts and relationships. If you're running a deficit, this is the first real move toward getting out.
Let's talk numbers. MCA contracts routinely mask APRs exceeding 100%. South Dakota itself has no usury cap for licensed lenders — but most MCA contracts designate New York as the governing jurisdiction. And New York courts are increasingly reclassifying MCAs as loans, triggering usury penalties under NY Gen. Oblig. Law § 5-501. The NY Attorney General’s $1 billion judgment against Yellowstone Capital — voiding $534 million in outstanding MCA balances across 18,000+ businesses including South Dakota — showed exactly how exposed funders are right now.
Strategy 1: Usury as a defense under NY law. Do the math. A $50K advance at a 1.4 factor rate costs $70K over 6 months — that's roughly 150% APR. Under New York's criminal usury threshold of 25%, the contract is void. The funder forfeits the right to recover both principal and interest. Discovery is key: subpoena the lender's underwriting docs. If they used credit scores or fixed repayment terms, courts may deem it a loan.
Strategy 2: Sue for unconscionability. South Dakota courts recognize unconscionability as a defense to contract enforcement. A 200% APR imposed on a struggling family restaurant in Rapid City can be challenged as procedurally and substantively unconscionable — especially when the borrower was in financial distress at signing.
Here's why this matters: most MCA funders sit in New York. Nearly all MCA contracts designate New York courts as the governing jurisdiction. That means a business owner in Sioux Falls, Rapid City, or Brookings is fighting under the same legal rules as a business owner in Manhattan.
Here’s why that actually works in your favor. South Dakota has no usury cap for licensed lenders — the state deliberately deregulated interest rates to attract financial institutions. But New York operates a dual usury framework: civil interest is capped at 16% annually, and any effective rate above 25% is criminal usury. Cross that line and the contract is void as a matter of law — the funder forfeits the right to recover both principal and interest. For South Dakota business owners, New York law actually gives you stronger protection than your own state does.
The CFPB has separately classified merchant cash advances as “credit” under the Equal Credit Opportunity Act — another signal that these products are functionally loans regardless of how the contract labels them. That gives MCA defense attorneys one more argument in their arsenal.
The difference between a good MCA defense attorney and a bad one is the difference between settling your $200K in debt for $80K and losing your business. Three questions matter:
1. Do they actually do MCA defense? Not consumer debt. Not medical debt. MCA debt. Ask how many COJs they've challenged, how many usury defenses they've raised, and what their average settlement percentage is. If they can't answer with specifics, keep looking.
2. Are real attorneys involved? Settlement negotiation alone is not MCA defense. You need attorneys licensed by the State Bar of South Dakota who file motions to vacate COJs, challenge UCC liens in South Dakota courts, subpoena funder underwriting documents, and draft enforceable settlement agreements. Ask whether attorneys are involved in every case or only brought in for escalations.
3. What's the fee structure? Legitimate MCA defense firms charge 18–25% of the enrolled debt amount, collected only after delivering results. Any firm that charges upfront fees before settling your debt is violating FTC guidelines — walk away. For a single MCA, top firms resolve cases in 2–8 weeks. For stacked MCAs, expect 3–6 months.
Of these three firms, only Delancey Street does real, attorney-coordinated MCA defense — COJ challenges, usury defenses, UCC lien disputes. The other two handle broader categories of business debt and may be right depending on your situation.
The only firm on this list that does real MCA defense: COJ challenges, usury defenses, UCC lien disputes, emergency motions to unfreeze bank accounts — all coordinated through a nationwide network of licensed attorneys. Delancey Street is not a law firm, but their attorney-coordinated model gives you the legal firepower of one combined with the settlement expertise of a dedicated debt resolution company. Over $100M settled. No upfront fees. All 50 states including South Dakota.
Not an MCA defense specialist — and they'll tell you that straight up. National Debt Relief handles general unsecured business debt — credit cards, vendor accounts, lines of credit. No COJ challenges, no usury defenses, no legal motions. If your South Dakota debt is traditional unsecured debt and not MCAs, they're a proven option with massive scale.
Not an MCA defense specialist either. CuraDebt handles business debt and IRS/state tax resolution. No COJ challenges, no usury defenses. If your South Dakota business also has tax obligations, they can handle that side while a firm like Delancey Street handles the MCA fight.
We get it. COJ filed against you. Bank account frozen. Daily ACH debits destroying your cash flow. Delancey Street's attorney network fights MCA funders with usury defenses, COJ challenges, and settlement negotiation. Over $100M settled. This is what we do.
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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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