The Truth About "Debt Settlement" Companies
Has someone contacted you saying they can settle your "MCA debts" or business loan debts?

Chances are it's a SCAM! Here are some hallmarks of the scam:

  • They tell you they will reduce your payments, stretch out the term, or substantially reduce your obligations so long as you "enroll your debt" or sign up for their service.
  • They tell you to immediately cease contact with your funding providers and that any further communication with them will be a violation of the process. 🚩🚩🚩
  • They tell you to direct your funds into an "escrow account" to be used as settlements. They will actually use these funds to pay themselves. Most of the time it's fake.
  • They advertise that you will be given access to a lawyer to represent you.
  • They tell you that your funders have broken some kind of law or violated the contract. This is a trick to scam you.
  • They will try to scare you into thinking a funder is about to bring some kind of legal action against you.
  • They call themselves debt relief, debt settlement, debt counselors, etc. etc.
If any of the above pitches sound familiar, you should report them to the FBI or file a complaint with the Attorney General of your state.


DateDebt Settlement Headlines
04/12/2024MCA Debt Settlement Company Sued
03/20/2024Arrested by FBI for Phony Debt Relief Service
01/19/2024CFPB, States Sue Debt Settlement Enterprise
07/24/2019Debt Settlement Fraudster Sentenced to 5.5 Years
09/06/2018Debt Settlement Companies Sued in RICO Case
06/14/2018NYC Says Beware of Debt Settlement Services
06/12/2018Debt Settlement Companies Forced to Settle
01/25/2018MCA Helpline Sued
08/10/2017Debt Settlement Company Worse than Wolf of Wall Street
01/16/2017MCA Funder Sues Debt Settlement Company
11/02/2016Fake Debt Settlement Company Defrauds Many


If you have one or multiple merchant cash advances and your revenue has dropped since the time you entered into those agreements, you may be entitled to a reconcilation. In order to take advantage of this feature, you should contact the funding provider directly (not a purported debt settlement firm).

If you have one or multiple business loans, your lender is the first person you should contact to address the situation.

More articles about debt settlement