If an MCA broker keeps blowing up your cell phone with automated calls, robocalls, or text messages after you told them to stop, you can file a TCPA claim against them. The Telephone Consumer Protection Act allows you to sue for $500 per illegal call or text, and up to $1,500 if they intentionally broke the law. To make a claim stick, you need to revoke consent, log every single contact, identify the caller, and decide whether to send a demand letter, hire an attorney, or go to small claims court.
what is a tcpa claim and how does it work for business owners?
A TCPA claim is a federal lawsuit or small claims action against someone who uses automated dialers, pre-recorded voices, or unsolicited text messages to contact you without legal permission. Back when I sat in the broker room, we had predictive dialers firing off hundreds of calls an hour. The system didn't care who was on the list. If you answered, a rep picked up immediately. That automated machinery is exactly what the TCPA regulates.
For small business owners, the TCPA is one of the few real weapons you have. While the National Do Not Call Registry mostly protects residential lines, the rules around autodialed calls and texts to personal or business cell phones still apply. If a broker is using a machine to hit your cell phone, or if they keep calling after you clearly revoked consent, each contact becomes a potential financial liability for them.
how do you know if an mca broker violated the tcpa?
An MCA broker violates the TCPA if they call or text your cell phone using an autodialer or artificial voice without prior express consent, or if they continue calling after you tell them to stop. Consent is key here. If you ever filled out an online form for business funding six months ago, you might have given written consent buried in the fine print. But you have the absolute right to revoke that consent at any time.
Here are the main situations where a violation occurs:
- They text your cell phone using an automated text platform without your permission.
- They call your cell phone using a predictive dialer or ringless voicemail system without prior consent.
- They continue calling or texting your cell phone after you explicitly tell them to stop or send a written cease and desist.
Here is a simple breakdown of what usually counts as a violation for business owners:
| scenario | tcpa violation? | estimated statutory damages |
|---|---|---|
| live call to a business landline without C&D | no | $0 |
| autodialed call or text to cell phone without consent | yes | $500 per call/text |
| autodialed call or text after revoking consent in writing | yes (willful) | up to $1,500 per call/text |
| ringless voicemail to cell phone without consent | yes | $500 per message |
what steps do you take to build a tcpa claim?
Building a claim isn't complicated, but you have to be disciplined about taking notes. Brokers count on you getting mad, screaming at the junior rep, and hanging up. That does nothing to stop them. Instead, you need a clean paper trail.
- Revoke consent clearly in writing. The easiest way to do this is sending a formal cease-and-desist letter. With MCAFax, you can send a C&D directly from your own Gmail account so you have a timestamped copy in your sent folder.
- Document every single call and text message. Take screenshots of your call history and text conversations. Note the date, exact time, phone number displayed, and the name of the caller or funding company if they give it.
- Identify the actual company calling you. Brokers often spoof numbers or use vague names like "Merchant Funding Dept." You need to get them to email you an application or state their full legal business name so you know who to sue.
- Keep a running tally of violations after your C&D was delivered. Once they receive your written notice, any subsequent autodialed calls or texts can be classified as willful violations, which bumps potential statutory damages from $500 to $1,500 per call.
- Check the broker's track record. You can check any funding broker free at mcafax.com/verify to see if other merchants have reported them for aggressive phone tactics or fraudulent behavior. MCAFax membership is completely free for business owners.
what are the honest limits of a tcpa claim?
The TCPA is a powerful tool, but it is not a silver bullet for every unwanted call. I always want to be straight with merchants about what the law can and cannot do. We are not lawyers, and nothing on this blog is legal advice. You need to understand the boundaries before you try to collect a dollar.
First, the National Do Not Call Registry generally does not cover purely business landlines. If a broker calls your office desk line on a standard phone system with a live person on the line, that is usually not a TCPA breach. Second, statutory damages of $500 to $1,500 are set by law, but getting a broker to pay them requires either a formal settlement or court judgment. If the brokerage is a pop-up outfit operating out of a garage with a burner phone, collecting money from them might be difficult even if you win a judgment. Focus your efforts on established brokers and direct funders who actually have bank accounts and assets to protect.
how do you turn violations into a settlement or legal resolution?
Once you have a documented record of violations after sending a C&D, you have clear options. You can take your call logs and C&D proof to a consumer protection attorney who specializes in TCPA cases. Many of these attorneys work on contingency, meaning they only get paid if you win or settle.
Alternatively, some merchants send a formal demand letter outlining the dates, times, screenshots, and total statutory damages owed, offering to settle out of court before filing in local small claims court or federal court. When a legitimate broker receives a clean, timestamped record of violations from a business owner who clearly knows the TCPA math, their legal counsel usually tells them to stop calling immediately and negotiate. The room stops looking at you like an easy layup and starts seeing you as a legal expense.