How MCA Consolidation Scams Work
A legitimate MCA consolidation replaces multiple high-cost MCAs with a single, manageable obligation. The scam version takes your money, provides no consolidation, and leaves you worse off. The typical scam: a company promises to consolidate your debts into one lower payment, charges a large upfront fee, tells you to stop paying existing MCAs, and does nothing while your accounts go into default and lawsuits are filed.
Red Flags
- Upfront fees before any work. Legitimate consolidation requires negotiation with each funder. Charging fees before results is a red flag.
- Guaranteed lower payments. No one can guarantee terms before negotiating with funders.
- Stop all payments immediately. This triggers simultaneous defaults across all MCAs without a legal strategy.
- No attorney involvement. Real consolidation involves legal work including contract review, funder negotiation, and settlement drafting.
- High-pressure sales. Act now or lose the opportunity is a scam signal.
What Real Consolidation Looks Like
An attorney reviews all existing contracts, identifies total obligations, lien priorities, and legal defenses. Then negotiates with each funder individually, potentially consolidating obligations into a single agreed payment plan. The process takes time, requires legal expertise, and fees are tied to results rather than collected entirely upfront.
What to Do If You Have Been Scammed
Gather all communications with the company. Demand a full refund in writing. File complaints with your state attorney general, the FTC, and the BBB. Contact an attorney to both recover your money and address the MCA situation the scam company failed to resolve. Time is critical because your MCAs may have defaulted while the company did nothing.