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New York Attorney General Letitia James filed suit on June 8 against Rapid Ruling, an arbitration platform secretly created with MCA company LCF Group to rubber-stamp judgments against merchants. The case arrives as Illinois and New Jersey join a growing wave of states requiring standardized cost disclosures for merchant cash advances.
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The merchant cash advance industry's enforcement reckoning intensified this month with a major New York AG action targeting what officials call a rigged arbitration system designed from the inside to favor MCA funders over the small businesses they finance.
NY AG Sues Rapid Ruling for Rigged MCA Arbitration On June 8, 2026, Attorney General Letitia James filed suit against online arbitration platform Rapid Ruling and its founders, Zachary Meyer and Andrew Sachs.
The complaint alleges that Rapid Ruling was not a neutral forum at all — it was conceived and built in coordination with MCA company LCF Group, Inc., which wrote the arbitration rules to systematically favor MCA funders.
The OAG's investigation found that in roughly 3,000 arbitrations conducted during Rapid Ruling's first three years of operation, 97 percent proceeded with no appearance by the small business respondent.
Because merchants were routinely absent — whether from lack of notice, resources, or awareness — arbitrators almost always ruled against them, routinely piling on junk fees and padded attorneys' fees on top of the underlying debt.
The AG is seeking restitution for impacted businesses, civil damages, civil penalties against Rapid Ruling and its principals, and a court order barring the company from continuing its operations.
The lawsuit marks one of the most direct attacks yet on the legal infrastructure MCA companies have used to enforce their contracts quickly and cheaply.
The FAIR Business Practices Act Is Now the Enforcement Engine The Rapid Ruling complaint invokes New York's FAIR Business Practices Act, signed by Governor Kathy Hochul on December 19, 2025, and effective February 17, 2026.