How Do I Report an MCA Funder or Broker to a Regulator?
Start with your state attorney general and your state's financial regulator, and file a report with the Federal Trade Commission. Include the company's legal name, your contract, payment records and a clear timeline of what happened.
Who handles complaints about MCA funders?
- Your state attorney general's consumer or business protection division.
- Your state financial regulator, especially in states that license or register commercial financing providers or brokers.
- The Federal Trade Commission, at ReportFraud.ftc.gov, which gathers reports on unfair and deceptive practices.
What should a complaint include?
- The company's legal name, address and any names it uses.
- Your contract and any disclosures you received.
- Bank statements showing payments.
- Emails, texts and call notes.
- A short timeline of events.
Why does filing a complaint help?
Regulators use complaints to find patterns. Several states have brought actions against MCA companies based on merchant complaints. A single complaint doesn't guarantee action, but it adds to the record.
How do disclosure laws come into it?
Some states, including California and New York, require commercial financing providers to give disclosures before you sign. If you didn't get one where it's required, mention that in your complaint.
What private remedies are there?
A complaint to a regulator doesn't replace your own legal options. If you've lost money or face a lawsuit, talk to a business attorney. This is general information, not legal advice.
Why keep the complaint factual?
Stick to what happened, when and what you have to show it. Clear, factual complaints get attention faster.
How do you protect yourself going forward?
Work with companies that tell you who they are, how they're paid and who the funder is.
How do you find your state's regulator?
Search your state's name with terms like financial regulation or department of banking. Some states list commercial financing providers they license or register, which lets you check whether a company is registered at all. If a broker or funder claims to be licensed, ask for the license number and check it.
How do you complain about a broker?
Brokers are covered by some state rules too. If a broker misled you about fees, the funder or the terms, include the broker's name and communications in your complaint.
How do you follow up on a complaint?
Regulators sometimes contact the company and ask for a response. Some complainants hear back with the company's answer. Keep your records organized in case they ask for more.
How soon should you file?
File while the details are fresh. Dates and names blur quickly, and a complaint with specifics carries more weight.
Where else can you get help?
Local small business development centers and chambers of commerce sometimes help owners understand their options after a bad financing experience.
How can Afterfirst help with this?
If you're dealing with a bad experience and need a fresh start with funding, call 877-FUND-654. We'll explain exactly how we work before you share anything.
What else do owners ask about this?
- What should I do if I think I was scammed by an MCA broker?
- Can an MCA funder call my family or employees?
- Can an MCA funder garnish my wages?
More short answers on this topic are on the legal questions FAQ, and the MCA payment calculator runs the numbers for your own file.
Where do these facts come from?
Have a question we didn't answer?
Ask us on the call. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.