Can MCA debt be forgiven?
Sometimes, but not on its own. New York's attorney general has won a court order and a settlement that canceled or cut MCA debt for many small businesses. Those cases covered certain funders only. If your funder was not part of them, ask for help with your own contract. Check any MCA debt relief company before you pay it.
On this page
MCA debt relief by forgiveness has happened, but through state cases against certain funders. Here is what New York's attorney general says.
A court order in New York
In a June 2026 press release, New York's attorney general says that in September 2023 her office won a court order requiring three merchant cash advance companies "to cancel the debt owed by thousands of small businesses nationwide and to repay all interest and overcharges collected."
A settlement with a network of funders
The same release says that in January 2025 her office secured a settlement with "a network of 25 predatory lending companies" that will deliver debt relief and "provide restitution to affected businesses."
These cases covered certain funders
The order and the settlement named certain companies. They are not a rule that cancels every MCA.
If your funder was not part of them
Ask for help with your own contract before you stop paying. What if stacked MCA daily pulls exceed sales? covers the cash side, and what to do when an MCA takes a daily debit has the order.
Check a relief firm first
How to check an MCA relief company has the questions to ask before you pay anyone. The Albany page covers New York's commercial finance disclosure.
This page is general information, not legal advice.
Sources
Where our facts come from
How this page was checked
- Licensed professional
- None. No licensed attorney who handles commercial finance has checked this page.
Ask about the weekday ACH
Partner MCA relief firms may call about the weekday ACH you are seeing. Asking is free, and a call does not hire them.