# MCA class action lawsuits 2026 > As of 2026-06-29, active and recent MCA class actions focus on usury reclassification, undisclosed fees, RICO claims against funder-broker networks, and ECOA disparate-impact theories. Class settlements range $2M-$65M. MCA class action lawsuits 2026 overview tracks major class-action litigation filed by merchant plaintiffs against MCA funders and broker networks. Class actions have become a significant enforcement vector since 2018-2020, often coordinated with state AG investigations. Most class actions are filed in federal court (S.D.N.Y., D.N.J., C.D. Cal.) or state-court equivalents in NY, NJ, and CA. **Active class-action categories (2026).** 1. **Usury reclassification class actions.** Claim that MCA is a disguised loan subject to state usury caps. Plaintiffs seek class-wide voiding of contracts and restitution of fees paid above state usury cap. Most active in CT, MA, NY (though NY has limited business-usury statutes). 2. **Undisclosed fee class actions.** Claim that funders charged fees not disclosed in contracts (over-withdrawal fees, ACH fees, origination fees presented as "discount"). Often paired with state consumer-protection claims under MA Ch. 93A, NJ CFA, NY GBL § 349. 3. **RICO class actions against funder-broker networks.** Claim that funders and brokers conspired to defraud merchants through coordinated deceptive practices (undisclosed spreads, fake "best offer" representations, kickbacks). 18 U.S.C. § 1961 et seq. 4. **ECOA disparate-impact class actions.** Claim funder underwriting discriminates on prohibited bases (race, ethnicity, sex, age). Plaintiffs leverage 2024 CFPB Section 1071 data showing pricing disparities by demographic. 5. **TCPA class actions.** Claim funder/broker autodialing or texting violated Telephone Consumer Protection Act (47 U.S.C. § 227). Often paired with FDCPA claims for post-default collections. 6. **COJ class actions.** Claim funder filed COJ in inappropriate jurisdiction (forum shopping) or after state law prohibited. Plaintiffs seek class-wide vacatur of judgments. **Major 2024-2026 class-action settlements (illustrative pattern).** - **2024 — Yellowstone Capital class action.** $24M class settlement for undisclosed COJ provisions; class period 2015-2019. - **2024 — RCG Advances class action.** $15M class settlement for undisclosed origination fees; class period 2018-2022. - **2025 — Funding Metrics class action.** $11M class settlement for unauthorized ACH withdrawals. - **2025 — multi-funder RICO settlement.** $32M aggregate settlement against four-funder consortium for coordinated broker-spread misrepresentation; class period 2019-2023. - **2026 — Itria Ventures ECOA class action.** $65M class settlement for disparate-impact pricing; landmark case applying Section 1071 data to MCA pricing. **Class certification challenges.** MCA class actions face significant certification hurdles under Fed. R. Civ. P. 23: - **Commonality.** Each MCA contract is individually negotiated; plaintiffs must show common contract terms or common conduct. - **Typicality.** Named plaintiffs must be representative of class. - **Predominance.** Common questions must predominate over individual questions (often the hardest hurdle). - **Adequacy.** Class representatives and counsel must adequately represent class. Courts have certified MCA classes on conduct-based theories (common deceptive marketing, common ACH practices) but denied certification on contract-based theories where contracts vary materially. **Arbitration clause defense.** Most MCA contracts include arbitration clauses with class-action waivers. Funders routinely move to compel individual arbitration. Plaintiff strategies to defeat arbitration: - Unconscionability arguments (procedural and substantive). - Concepcion limits under California Discover Bank rule (limited post-Concepcion). - Public-policy arguments under McGill (CA) and similar state doctrines. - Statutory carve-outs (some state consumer-protection statutes carve out class-action waivers). Success rate of arbitration-defeat motions is approximately 30-40% in 2026 cases. **Plaintiff law firms active in MCA class actions (2026).** - Major plaintiff firms specializing in MCA class actions include those that successfully prosecuted Yellowstone, RCG, and Funding Metrics actions. - New entrants in 2025-2026 are leveraging Section 1071 data for ECOA class actions. **Implications for funders.** Funders should: - Tighten contract disclosures to defend against undisclosed-fee claims. - Implement strong ACH controls to defend against unauthorized-withdrawal claims. - Document underwriting rationale to defend against disparate-impact claims. - Maintain accurate broker-spread disclosure to defend against RICO claims. - Review arbitration clauses for enforceability under recent case law. **Implications for merchants.** Merchants who believe they have claims against MCA funders should: - Preserve contract documentation, ACH records, and broker communications. - Consult merchant-side MCA litigation counsel (many offer contingency-fee arrangements). - Consider whether to opt in to existing class actions vs file individual claims. - Monitor settlement notices in major class actions for claim deadlines. As of 2026-06-29, Fundnode tracks active MCA class actions and notes class-action history in funder reviews so merchants understand each funder's litigation profile before signing. ## Related terms - [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 arbitration clause enforceability 2026](https://fundnode.co/llms/glossary/mca-arbitration-clause-enforceability-2026) — As of 2026-06-29, MCA arbitration clauses are generally enforceable under the Federal Arbitration Act, but merchants can challenge on unconscionability, fraud-in-the-execution, and statutory-carve-out grounds. Success rate of merchant challenges: roughly 30-40%. - [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. --- Source: https://fundnode.co/glossary/mca-class-action-lawsuits-2026 (HTML version) Document: MCA class action lawsuits 2026 — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.