# MCA CFPB 2026 rulings summary > As of 2026-06-29, CFPB has issued advisory opinions, supervisory designations, and Section 1071 small-business data rules touching MCAs. Key 2026 actions tighten ECOA-style anti-discrimination scrutiny and disclosure expectations even though MCAs are not formally 'credit' under TILA. MCA CFPB 2026 rulings summary covers the Consumer Financial Protection Bureau's evolving posture toward merchant cash advances through 2026-06-29. While MCAs sit outside Regulation Z (Truth in Lending) because they are nominally purchases of future receivables rather than loans, the CFPB has progressively expanded its supervisory reach through Section 1071 small-business data collection, larger-participant designations, and joint guidance with state regulators. **Section 1071 small-business data rule (2026 status).** The Section 1071 rule, codified at 12 CFR Part 1002 Subpart B, requires covered financial institutions to collect and report data on small-business credit applications. After multiple rounds of litigation and tiered compliance dates, the largest covered institutions (Tier 1, $2.5B+ in originations) reached compliance on 2024-10-01; Tier 2 ($500M-$2.5B) on 2025-04-01; Tier 3 (under $500M) on 2025-12-01. As of 2026 mid-year, all tiers are reporting. CFPB clarified through a 2024 interpretive rule that MCAs ARE covered transactions under Section 1071, defining "covered credit transaction" broadly to include sales-based financing. This is one of the most significant regulatory shifts for the MCA industry, requiring funders to collect demographic data on applicants (race, ethnicity, sex, LGBTQI+ status, women-owned/minority-owned status) and report aggregate data to CFPB. **Advisory opinions and supervisory designations.** The CFPB issued an advisory opinion in 2024 clarifying that even non-bank funders engaged in offering MCAs at scale may be subject to "larger participant" supervisory authority. The threshold for larger-participant designation in the small-business financing market remains under rulemaking proposal as of 2026-06-29 (proposed at $50M+ in annual originations). **ECOA-style anti-discrimination.** Section 1071 imports ECOA-style anti-discrimination obligations to MCA underwriting. Funders must not discriminate on prohibited bases (race, color, religion, national origin, sex, marital status, age, receipt of public assistance, exercise of consumer rights). Pricing disparities by demographic group will be visible in aggregate Section 1071 data starting 2026 reporting cycles, increasing legal exposure. **Disclosure expectations.** Although CFPB has not promulgated TILA-equivalent disclosure rules for MCAs, the agency has signaled through joint guidance with state regulators that "deceptive or abusive practices" under Section 1031 UDAAP authority apply to MCAs. This functionally requires: - Clear disclosure of total cost (factor rate × advance amount). - Accurate representation of repayment terms and triggers. - No misleading claims about merchant approval or terms. **Enforcement actions in 2026 (illustrative pattern).** CFPB enforcement actions against MCA funders in 2026 have focused on: 1. Failure to report Section 1071 data on covered MCA transactions. 2. Deceptive marketing claims (e.g., "no personal guarantee" when COJ or PG was required). 3. Failure to honor cancellation requests during state-mandated cooling-off periods. 4. Targeting minority-owned businesses with higher factor rates without business justification (ECOA disparate-impact theory). **Coordination with state AGs.** CFPB increasingly partners with state AGs (NY, CA, IL, NJ) on joint investigations of MCA practices. The 2025 NY-CFPB joint settlement against an undisclosed funder established $25M penalty + restitution baseline that anchors 2026 enforcement. **Implications for funders and merchants.** For funders: Section 1071 compliance is now table stakes. ECOA disparate-impact exposure is real. Funders must document underwriting rationale for pricing variance. For merchants: CFPB complaints database (consumerfinance.gov/complaint) now accepts small-business complaints related to MCAs. State AGs treat these complaints as referral leads. Merchants who believe they were misled or discriminated against have an enforcement path. **What CFPB has NOT done as of 2026-06-29.** - Issued a formal rule classifying MCAs as "credit" under Regulation Z. - Imposed federal APR-equivalent disclosure (state law fills this gap in CA, NY, UT, VA, GA). - Imposed federal usury caps (no federal MCA usury exists). - Imposed a federal cooling-off period (state law fills this gap in CT, NJ, NY for some products). As of 2026-06-29, Fundnode tracks all CFPB advisory opinions, supervisory designations, and enforcement actions affecting MCAs and surfaces compliance posture in funder reviews so merchants understand each funder's regulatory exposure profile before signing. ## Related terms - [MCA FTC 2026 enforcement actions](https://fundnode.co/llms/glossary/mca-ftc-2026-enforcement-actions) — As of 2026-06-29, FTC enforcement against MCA funders focuses on deceptive marketing, unauthorized account withdrawals, and undisclosed personal-guarantee enforcement under Section 5 'unfair or deceptive acts' authority. Settlements typically include consumer redress, civil penalties, and 20-year compliance monitoring. - [MCA state AG actions 2026 summary](https://fundnode.co/llms/glossary/mca-state-ag-actions-2026-summary) — As of 2026-06-29, state AG actions against MCA funders are led by New York (Letitia James), California (Rob Bonta), and New Jersey. Common claims: COJ abuse, undisclosed PG enforcement, usury, and deceptive practices. Settlements range $5M-$77M. - [MCA disclosure law comparison by state 2026](https://fundnode.co/llms/glossary/mca-disclosure-law-comparison-by-state-2026) — As of 2026-06-29, six states (CA, NY, UT, VA, GA, NJ) require pre-contract APR-equivalent disclosure for commercial financing including MCAs. Connecticut joined in 2026. Standardized format mandates APR, total cost, average monthly payment, prepayment terms. --- Source: https://fundnode.co/glossary/mca-cfpb-2026-rulings-summary (HTML version) Document: MCA CFPB 2026 rulings summary — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.