Usury (and MCAs)
Laws capping the interest a lender may charge, civil caps around 16 to 25 percent in states like New York, with criminal usury above that. MCAs priced at effective rates far beyond these caps are legal only because they are structured as purchases, not loans.
Why it matters
Usury is the stake in every recharacterization fight: if the advance is a loan, its factor-rate pricing may be usurious and unenforceable in whole or part. This is why the purchase-versus-loan question dominates MCA litigation and settlement leverage.
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