The ten red flags to walk away fromin an MCA debt relief firm.
Walk away from any MCA debt relief firm that asks for money before you have read and signed the agreement, quotes a percentage or a date before reading your contracts, tells you to stop paying without writing down the risks, or wants your money sent to its own account. The ten flags below each come with what a legitimate firm does instead.
Key points
- A firm that will not put its fees in writing before you sign is a red flag.
- A promised percentage reduction or timeline, before anyone reads your contracts, is a red flag.
- Your program money should sit in an account the firm itself never holds.
- A firm that tells you to stop paying funders without explaining the consequences is a red flag.
What are the ten red flags?
Each one comes with what a legitimate firm does instead, and with how Anchor Resolve answers, so you can hold us to the same list.
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Fees are quoted verbally, or described as “built into your plan.”
A legitimate firm puts every fee in the agreement you read before you sign, and asks for nothing before that. Ask for the fee terms in writing before any conversation about strategy.
Anchor Resolve’s answer. The program fee is set out in your program agreement. Anchor Resolve is compensated by the servicing partner from that fee. You do not pay Anchor Resolve separately.
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It quotes a reduction, a percentage, or a number of weeks before reading your contracts.
No honest firm can know what a funder will agree to before it has read your agreements and heard from the funder. Nothing requires a funder to negotiate.
Anchor Resolve’s answer. We publish no percentage and no timeline, and we say so on the first call. Results vary. No outcome is guaranteed.
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It implies legal representation it cannot provide.
Only a licensed attorney in your state can answer a summons, defend a lawsuit, or move to vacate a judgment. A firm that is not a law firm should say so in plain words.
Anchor Resolve’s answer. Anchor Resolve is not a law firm. When your case needs an attorney, we say so on the first call.
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It tells you to “just stop paying,” and writes nothing down about what happens next.
Under most MCA agreements a stopped or blocked payment is a default, which can bring acceleration, fees, UCC enforcement, and a lawsuit. A firm that mentions none of that is hiding the risk.
Anchor Resolve’s answer. We do not tell anyone to stop paying. The decision about any payment is the owner’s, made with the agreement in front of them.
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Client money goes to the firm’s own operating account.
Money set aside for funders should sit where the firm cannot spend it. The documented worst cases involve client deposits collected and no funder paid.
Anchor Resolve’s answer. A dedicated program account is set up for you and managed by an independent payment processor. Anchor Resolve never holds or handles your funds.
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It gives no legal name, no registration, and no physical address.
You should be able to find the firm in its state’s business registry and know where it is. Stock photos and an invented team are a warning.
Anchor Resolve’s answer. Anchor Resolve LLC, Miami, Florida. The full street address is on the contact page, and the facts page lists what you can verify.
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Its ratings and review widgets cannot be traced to a source.
Reviews you cannot trace to a real person on an independent platform are decoration. The Federal Trade Commission’s rule on reviews and testimonials bars fake and company-controlled reviews presented as independent.
Anchor Resolve’s answer. We show no badges and no review widgets. Our reviews page publishes only verified, consented client reviews, and says so when there are none.
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It advertises dollar totals and client counts with nothing behind them.
A number that cannot be substantiated is a claim, not a record. Ask how it was counted and by whom.
Anchor Resolve’s answer. We publish no client counts and no dollar totals, because we cannot substantiate them to the standard on our editorial standards page.
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It cold calls you, or tells you the offer expires today.
A countdown is a sales tool. A real deadline belongs to your situation, such as a court date, never to a firm’s offer.
Anchor Resolve’s answer. We never cold call and there is no deadline on our side. If a real clock exists in your case, we name it and say whose it is.
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Deals are verbal, and updates arrive only when you chase them.
Every term with a funder should be in writing before money moves under it, and you should hear where each position stands without asking.
Anchor Resolve’s answer. Every agreement is written and signed by you with that funder, and you are told where each position stands, including when a funder digs in.
What should you do if you see one?
Stop, and ask for the answer in writing. A legitimate firm will put its fees, its risks, who negotiates, and who holds the money in writing without argument. If a firm already has your money or has told you to stop paying, our guide to how MCA debt relief scams work explains what regulators have acted on and where to report it.
To check any firm against the same tests, use the nine-test guide to checking whether a firm is real and the ten-point rubric for choosing a firm. The fifteen questions to ask before you sign work on every firm, including us.
Common questions
How many red flags should make me walk away from a debt relief firm?
One. Each flag on this page is something a legitimate firm answers in writing without argument, so a firm that dodges even one has told you what you need to know. Ask for the answer in writing and read it before you pay or sign anything.
Can a legitimate firm still be the wrong fit for my business?
Yes. A bank refinance, a licensed attorney, or bankruptcy is sometimes the better route, and an honest firm says so on the first call. Our guide to choosing a firm lists when each applies.
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