How much does MCA settlement actually cost?

A proposal may use a fixed amount, a percentage of enrolled balances, a percentage of claimed savings or multiple charges. Ask exactly what is included in the calculation, when each charge becomes due and whether an unsuccessful negotiation still generates fees.

For a hypothetical $100,000 obligation, a $60,000 creditor settlement plus a $20,000 provider fee costs $80,000 before other charges. The net reduction is $20,000, not the $40,000 headline discount. These figures illustrate arithmetic, not typical MCA pricing or a predicted outcome.

Request any attorney, administration, payment-processing, account-maintenance and cancellation fees. Ask whether legal representation requires a separate agreement and whether fees apply separately to each creditor. Neither hourly billing nor a separate attorney engagement proves poor service; unclear scope makes comparison difficult.

Stop MCA’s public FAQ, for example, describes an enrollment fee and a savings-related service fee but does not specify the amounts. This illustrates why a “free consultation” does not mean a free program. Confirm any refund conditions against the agreement.

List creditor payments, provider fees, outside legal costs and unresolved balances. Model what happens if one creditor refuses, an account is sued or the business leaves the program. Ask for actual written terms instead of relying on a headline percentage.