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FTC and NY AG Target Merchant Cash Loan Businesses

FTC and NY AG Target Merchant Cash Loan Businesses

These lawsuits pose a especially threatening challenge to the MCA industry, and supply understanding of the sorts of claims state and federal regulators provides against MCA companies as time goes on. Having said that, the allegations are exactly that: allegations. We now have perhaps maybe maybe not yet seen an answer by the MCA businesses which can be defendants in this matter, and also as with many litigation, the record could be more nuanced than is recommended by the initial legal problem. Moreover, as identified below, you will find available problems of pure legislation which could act as fodder for future movement training.

Advertising

The main allegations by the FTC concerning advertising relate to deceptive claims. As an example, the FTC alleges that even though defendants’ websites declare that the MCA requires “no individual guaranty of security from company owners,” the agreements really have a guaranty that is“personal provision.