MCA Compliance
MCA compliance is the practice of conforming to all applicable federal and state regulations governing merchant cash advance origination, disclosure, calling, marketing, and collections — including TCPA, FCRA, GLBA, state commercial finance disclosure laws, and consumer protection frameworks.
Why This Matters
MCA compliance has expanded dramatically since 2018. New York's Commercial Financing Disclosure Law (CFDL), California's Commercial Financing Disclosure (SB 1235), Utah's Commercial Financing Registration, Virginia's commercial financing registration, and active FTC enforcement have all reshaped operational requirements. Key compliance pillars: TCPA-compliant dialing practices, FCRA-compliant credit checks, GLBA data security for financial information, state-by-state APR-equivalent disclosure obligations, and clear consumer-facing terms documentation. Compliance failures generate regulatory action, litigation exposure, and increasingly, lender liability for ISO and broker conduct.
Frequently Asked Questions
Frequently Asked Questions
What states have the strictest MCA compliance frameworks?
California (CCFPL — broad commercial finance disclosure), New York (CFDL — APR disclosure, broker registration), Connecticut, Utah, and Virginia have enacted explicit commercial financing disclosure frameworks. Florida, Texas, and Illinois separately enforce telemarketing and consumer protection rules against MCA actors.
Are funders liable for ISO compliance violations?
Increasingly yes. Recent FTC and state AG actions have pursued funders for ISO conduct, especially around deceptive marketing practices and TCPA violations. Funders are tightening ISO oversight, audit rights, and contract clawback provisions to manage downstream liability exposure.