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FL MCA Attorney: CFDL & 18% Usury Cap (2026)

Florida's CFDL and 18 percent civil usury cap create real leverage. How FL law shapes MCA cases and how to find qualified counsel via the FL Bar.

By Bar Alezrah11 min readPublished April 16, 2026 · Updated April 16, 2026

Florida is one of the most active MCA markets in the country and one of the few states with a modern commercial financing disclosure statute. The combination of HB 601, a firm 18% civil usury cap, and a deep commercial bar means a Florida MCA attorney has more statutory leverage than attorneys in most states. This guide covers what Florida law lets your attorney do, where usury and disclosure arguments sit, and how to find counsel. It is not legal advice about your specific case, which only a licensed attorney can give. For the broader framework, see MCA laws in Florida and the MCA attorney complete guide.

Florida's CFDL: What HB 601 Requires

Florida enacted HB 601 in 2023, and the law became effective January 1, 2024. It applies to most commercial financing transactions of $500,000 or less extended to a Florida business, including merchant cash advances, factoring arrangements, and commercial open-end credit. Covered providers must deliver a standardized disclosure at or before consummation that includes the total amount of funds provided, total dollar cost, term or estimated term, payment amount and frequency, a description of fees, prepayment terms, and an estimated annualized rate.

For MCAs, the estimated annualized rate is the headline. For years funders resisted any disclosure that looked like an APR on the theory that the product was not a loan. Florida followed the New York and California approach and required an estimated rate calculation based on the contract's expected term. The result is that a Florida merchant now sees a number at closing that approximates the true cost of the money in familiar terms.

The law also includes recordkeeping and, importantly, allows the Florida Office of Financial Regulation to investigate and pursue violations. For a Florida MCA attorney, a missing or materially inaccurate disclosure is a concrete statutory hook. It does not automatically void the contract, but it can support affirmative defenses and parallel regulatory complaints that generate settlement pressure.

Florida's 18% Civil Usury Cap and MCAs

Florida has one of the clearer usury regimes among MCA-active states. Under Fla. Stat. §687.02, the general civil usury cap is 18% per year for most loans, with a higher cap of 25% for loans over $500,000. Under §687.071, a loan at a rate exceeding 25% is criminal usury in the first tier, with a second tier at 45% and above carrying harsher criminal penalties. The civil penalty for usurious interest can be forfeiture of the interest, and in severe cases forfeiture of principal as well.

Like everywhere else, these caps apply to loans, not to true purchases of future receivables. The threshold battle in a Florida MCA case is whether the court treats the advance as a disguised loan under Florida's substance-over-form analysis. Florida appellate courts have addressed commercial recharacterization in various contexts and generally look at whether repayment is truly contingent on the underlying business performance, whether the funder bears meaningful risk, and whether reconciliation functions in practice rather than only on paper.

If a court recharacterizes, Florida's caps land hard because MCA effective rates routinely clear 50% annualized and often exceed 100%. That puts the transaction in the criminal usury range under §687.071, which strengthens the defensive posture even when the merchant is not seeking criminal sanctions.

Florida Office of Financial Regulation Enforcement

The Florida Office of Financial Regulation (OFR) supervises state-chartered banks, credit unions, consumer finance companies, money services businesses, and securities firms. Its commercial financing authority under HB 601 is relatively new, and the agency has been building out examination and enforcement capacity. OFR accepts consumer and small business complaints through its online portal.

For a Florida MCA dispute, OFR matters in three ways. First, a credible complaint creates a public record that defense counsel can cite in private litigation. Second, administrative actions and consent orders, when they become public, build a pattern-and-practice story useful in briefing. Third, funders who are under active OFR scrutiny tend to settle faster to avoid accumulating regulatory exposure.

Not every case belongs in front of OFR. If your facts include a missing or materially wrong disclosure, a pattern of sales misrepresentation, or ACH abuse after a reconciliation request, the agency is worth considering. A Florida MCA attorney should be comfortable evaluating whether a parallel regulatory track strengthens or complicates your civil defense.

Florida Circuit Court Process for MCA Lawsuits

Florida has a two-level trial court system. County courts handle civil cases where the amount in controversy is $50,000 or less. Circuit courts handle everything above that, plus equity actions and certain specialized matters. Most MCA lawsuits fall into circuit court because typical contested balances exceed the $50,000 county threshold.

The lifecycle of a filed MCA case in a Florida circuit court runs along familiar lines. The funder files a complaint and serves the merchant and any personal guarantor. The defendant has 20 days after service to file an answer or a responsive motion. Motions to dismiss under Rule 1.140 of the Florida Rules of Civil Procedure often test the sufficiency of the complaint, including whether the contract on its face shows a true purchase or a disguised loan. Discovery follows, with document production, depositions, and sometimes expert testimony on industry practice or reconciliation. Summary judgment under Rule 1.510 comes next, and stronger cases proceed to trial. Settlement is common once motion practice clarifies leverage.

County-level practice varies. Miami-Dade, Broward, Palm Beach, and Orange counties see high volumes of MCA cases and have judges familiar with the economics. Ask your attorney whether they have appeared in your specific division and can name the judge's prior rulings on MCA matters. For the playbook if you have already been served, see MCA lawsuit being sued playbook.

Florida also has an active federal docket. The Southern and Middle Districts of Florida sit in Miami, Fort Lauderdale, West Palm Beach, Tampa, and Orlando, and diversity jurisdiction often applies when a funder based in New York or New Jersey sues a Florida-based merchant. Federal practice moves faster than most state circuit dockets, which cuts both ways for a defendant. An attorney who practices in both state and federal court in your home district is an advantage when the choice-of-forum question comes up early in the case.

Settlement Dynamics and Leverage Points in Florida

Most Florida MCA cases settle before trial, and the timing of settlement is often driven by two or three specific pressure points. The first is a motion to dismiss that attacks the complaint's characterization of the advance as a pure purchase. A well-pleaded motion under Rule 1.140 that forces the funder to defend its pleading on the merits often produces the first meaningful settlement conversation. The second is discovery on reconciliation practice. Many funders cannot produce clean records of how they handled reconciliation requests, and a well-targeted discovery request on that topic creates pressure.

The third leverage point is a credible usury defense teed up for summary judgment. Because Florida's 18% civil cap and 25% criminal threshold are firm numbers, a funder facing a viable recharacterization argument is looking at statutory penalties that can include interest forfeiture and, in more extreme cases, principal forfeiture. That is a different risk profile than defending a standard breach claim, and experienced funders often settle at a steep discount rather than accept that risk at trial.

Your Florida MCA attorney should be able to map these leverage points onto your specific case and set realistic expectations for when settlement discussions are likely to become productive. Ask for a case plan with milestones, not just an hourly rate.

Finding a Florida MCA Attorney

Start with The Florida Bar's Find a Lawyer search. The free lookup shows member status, bar number, admission date, public discipline, and any board certifications. The Florida Bar certifies specialists in several areas including business litigation and civil trial law, which are useful signals for MCA work but not substitutes for MCA-specific experience. MCA or commercial finance specifically is not a certified area.

Practical vetting questions that work in Florida:

• How many Florida MCA or commercial finance defense matters have you handled in the last 24 months, and in which counties?
• Have you filed a defense or complaint that relied on HB 601 disclosure violations since January 1, 2024?
• Have you litigated a recharacterization argument to summary judgment or trial in Florida circuit court?
• Are you board certified in business litigation or civil trial law?
• What is your fee structure and realistic estimate of total cost through settlement or trial for a case like mine?

For context on what these lawyers do across states, the sibling guides on MCA defense attorney, MCA lawsuit attorney, and MCA lawyer cost cover scope, fees, and strategy. If you are weighing whether a debt relief firm can work in parallel with counsel, read best MCA debt relief companies.

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