The Best Virginia MCA Debt Relief Company: VA Laws, Courts, and How to Choose

Virginia's general usury cap is 12% (Va. Code § 6.2-303(A)), but its reach in the MCA context is narrow: under § 6.2-317, no borrower may raise usury as a defense to a loan of $5,000 or more made for business purposes, and § 6.2-303(C) permits any agreed rate where usury cannot be pleaded. Virginia also has no commercial criminal usury statute comparable to New York's or New Jersey's. So even where a Virginia court recharacterized an MCA as a loan, the usury remedy would usually be unavailable — a Virginia merchant's real leverage comes from the 2022 Sales-Based Financing Providers Act (registration, disclosure, mandatory Virginia venue, COJ ban) rather than rate caps.

Sources: Va. Code § 6.2-303 (12% cap and exceptions) · Va. Code § 6.2-317 (no usury defense, business loans of $5,000+)

Va. Code § 6.2-2234(C) provides that no sales-based financing contract shall contain a confession-of-judgment provision "or any similar provision," and any such provision is unenforceable. The same section requires suits under sales-based financing contracts to be brought in Virginia — out-of-state venue clauses are unenforceable — and restricts arbitration terms. Virginia otherwise still permits confessed judgments in general commercial practice, so the protection is specific to MCA-covered contracts: if your agreement post-dates July 1, 2022, both the COJ clause and the New York forum clause in it are likely dead letters.

Sources: Va. Code § 6.2-2234 (COJ ban; mandatory Virginia venue) · Mayer Brown — Virginia MCA registration and disclosure law (2022)

Virginia's 2022 law (HB 1027; Va. Code §§ 6.2-2228–6.2-2238) is the most complete state MCA regime in the country: providers must give disclosures with any specific offer (financing amount, disbursement amount, finance charge, total repayment amount, estimated payments, fees, prepayment terms, collateral, broker compensation) for contracts on or after July 1, 2022 — and both providers and brokers must register with the State Corporation Commission annually. Exemptions cover financial institutions, transactions over $500,000, and low-volume providers. Implementing regulations (10VAC5-240) prescribe a standardized disclosure form, and § 6.2-2238 gives the Attorney General enforcement authority. Before signing or restructuring, a Virginia merchant can check whether the funder is even registered.

Sources: Va. Code Title 6.2, Chapter 22.1 (full act) · 10VAC5-240 — implementing regulations (SCC) · Mayer Brown — HB 1027 summary (dates, disclosures, exemptions)