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When an MCA funder violates a settlement agreement, you need attorneys who know how to hit back — hard. Breach of contract motions. Contempt proceedings. Damages claims. The firms below are ranked by their ability to enforce settlement agreements and hold bad-faith funders accountable.
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 — attorneys who file breach of contract actions, contempt motions, and damages claims when MCA funders violate settlement agreements. Their attorney network has handled hundreds of settlement enforcement cases across every major jurisdiction where MCA funders operate.
Here is how it works when a lender breaks the deal. Delancey Street’s attorneys move immediately: (1) send a formal demand letter citing the specific settlement terms violated and demanding immediate compliance, (2) if the settlement was court-ordered, file a contempt motion under Judiciary Law §753 with a request for sanctions, (3) file a breach of contract action seeking compensatory damages for every unauthorized withdrawal, bank fee, and business loss caused by the lender’s violation. MCA funders fold fast when faced with contempt proceedings — because judges do not take kindly to parties who violate their own settlement agreements.
Important: National Debt Relief is not a law firm and does not file contempt motions, breach of contract actions, or handle MCA settlement enforcement. They are the largest debt settlement company in the United States — A+ Better Business Bureau rating, 550,000+ clients served. Where they fit: if the breached settlement created additional unsecured debt or if you carry credit card and vendor debt alongside the MCA issue, National Debt Relief can address those obligations.
Important: CuraDebt is not a law firm and does not file contempt motions or breach of contract actions. They handle business debt and IRS/state tax resolution. If the lender’s breach has caused cash flow problems that led to missed payroll tax deposits or IRS issues, CuraDebt can address the tax side while Delancey Street handles the enforcement. They are IAPDA certified with 25+ years of experience.
You signed the deal. You thought it was over. It was not. Here are the most common ways MCA funders breach settlement agreements — and every single one gives you grounds for legal action.
Continued ACH Withdrawals. The settlement says all withdrawals stop. The lender keeps pulling money from your account anyway. This is the most common violation — and the most financially destructive. Every unauthorized debit is a separate breach, a separate damages claim, and potential grounds for fraud.
Refusing to Dismiss the Lawsuit. The settlement required the lender to file a stipulation of discontinuance or dismiss the case. Weeks go by. Months go by. The case is still open. Under CPLR §2104, your attorney can file a motion to enforce the stipulation and compel dismissal.
Demanding Additional Payments. You paid the settlement amount in full. Now the lender claims you owe more — late fees, penalties, interest that was not in the agreement. This is textbook breach. The settlement supersedes the original MCA contract. The lender cannot go back to the well.
Refusing to Release UCC Liens. The settlement should have required the lender to file a UCC-3 termination statement. But the lien is still on your record, blocking your access to new financing. This ongoing harm gives you grounds for both breach of contract and statutory remedies.
Sending the Account to Collections. The settlement resolved the debt. But the lender sells or assigns the account to a third-party collector who starts calling, threatening, and demanding payment. This is not just a breach — it may also violate the Fair Debt Collection Practices Act.
You have multiple weapons. Here is what your attorney can do — and in most cases, should do all of them at once:
1. Breach of Contract Action. A settlement agreement is a contract. When the lender violates it, you file a breach of contract claim seeking compensatory damages — every dollar of unauthorized withdrawals, bank overdraft fees, lost business revenue, costs of alternative financing, and attorney’s fees for enforcing the agreement. In New York, the statute of limitations is six years under CPLR §213.
2. Contempt of Court. If the settlement was incorporated into a court order — a stipulation of settlement filed with the court, a so-ordered agreement, or a consent judgment — the lender’s violation is contempt of court. Under Judiciary Law §753, civil contempt carries fines calculated to compensate you for damages plus coerce compliance. The court can also award attorney’s fees. Judges take contempt seriously. Very seriously.
3. Motion to Enforce Stipulation (CPLR §2104). If the settlement was a stipulation made in open court or in a writing subscribed by the parties, you can move to enforce it directly under CPLR §2104. The court will order the lender to comply with every term — dismiss the case, release the lien, stop the withdrawals — and sanction noncompliance.
4. UDAP and Consumer Protection Claims. Depending on your state, the lender’s conduct may violate unfair and deceptive acts and practices (UDAP) statutes, which can provide treble damages and attorney’s fees. Some states treat MCA transactions as lending subject to consumer protection laws — and a lender’s refusal to honor a settlement agreement is both unfair and deceptive.
5. Fraud Claims. If the lender never intended to honor the settlement — they took your money knowing they would continue collections — that is fraud. Fraud claims can support punitive damages, which are designed not just to compensate you but to punish the lender and deter future misconduct.
1. Document everything immediately. Screenshot every unauthorized withdrawal. Save every email, letter, and text message from the lender. Record every phone call (where legal in your state). Pull your bank statements showing debits after the settlement date. This evidence is your ammunition.
2. Send a formal written demand. Your attorney should send a demand letter via certified mail citing the specific settlement terms being violated, demanding immediate compliance, and putting the lender on notice that continued violations will result in legal action. This letter creates a paper trail and eliminates any defense that the lender was unaware of the breach.
3. Contact your bank. If the lender is making unauthorized ACH withdrawals, contact your bank immediately. File an ACH dispute for each unauthorized debit. Revoke the lender’s ACH authorization in writing. Under NACHA rules, your bank must process returns for unauthorized transactions.
4. Call an MCA defense attorney. Call (212) 210-1851 to speak with Delancey Street. They will review your settlement agreement, identify every violation, and begin preparing the enforcement action. Do not wait for the lender to fix the problem on their own. They will not.
Only one firm on this list — Delancey Street — actually fights this battle: attorney-coordinated settlement enforcement with contempt motions, breach of contract actions, and damages recovery. The other two handle broader debt categories. They are not built for this fight.
The only firm on this list that provides MCA settlement enforcement — contempt motions, breach of contract actions, damages recovery, and ACH dispute coordination. Not a law firm, but their attorney network delivers aggressive enforcement when lenders break the deal. Over $100M settled. No upfront fees. All 50 states.
Not a settlement enforcement specialist. National Debt Relief handles general unsecured business debt — no court filings, no contempt motions, no breach of contract actions. But if you carry traditional unsecured debt alongside your MCA issues, they are a strong option for those obligations.
Not a settlement enforcement specialist. CuraDebt handles business debt and IRS/state tax resolution. Where they fit: if the lender’s breach has caused tax complications, CuraDebt can address the tax side while Delancey Street handles the enforcement action.
You held up your end of the deal. The lender did not. Delancey Street’s attorney network files breach of contract actions, contempt motions, and damages claims. Over $100M settled. Free consultation. Call now.
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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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