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Texas has opened NMLS registration for commercial sales-based financing providers ahead of a December 31 deadline, part of a broader wave of state-level scrutiny that includes New Jersey's new junk-fee enforcement push and the lasting fallout from New York's billion-dollar case against Yellowstone Capital.
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No single headline dominated the merchant cash advance industry in the past day, but the throughline running through 2026 keeps getting stronger: state regulators, not federal ones, are setting the rules MCA funders and brokers now have to live by.
Three developments illustrate where things stand this month.
Texas Opens Registration for Sales-Based Financing Providers Under Texas House Bill 700, now codified as Finance Code Chapter 398, providers and brokers of "commercial sales-based financing" — the state's statutory term for merchant cash advances — must register with the Texas Office of Consumer Credit Commissioner (OCCC).
As of September 1, 2026, applicants can create the required account and submit registration applications through the Nationwide Multistate Licensing System (NMLS).
Businesses already operating in Texas have until December 31, 2026 to complete registration, while new entrants must register before doing business in the state at all.
The law also imposes commercial-financing disclosure requirements and restricts automatic account debits, following the model several other states have adopted.
(Texas OCCC, FS Vector, Mayer Brown) New Jersey Attorney General Targets "Junk Fees" in Commercial Financing In June, New Jersey Attorney General Justin Davenport, acting alongside Governor Mikie Sherrill's Executive Order 19, issued a sweeping enforcement statement targeting "junk fees" — hidden, surprise, or excessive charges — under the state's Consumer Fraud Act.
The statement explicitly calls out drip pricing, dark patterns, and non-transparent fee practices, and it follows the New Jersey Division of Consumer Affairs' earlier consent order with Yellowstone Capital LLC and related entities, which required the company to forgive roughly $21.7 million in outstanding merchant balances and pay more than $5.6 million to the state.