On January 16, the New York State Attorney General (AG) filed a consent order in the Supreme Court of the State of New York involving lending companies and its officers (the respondents) accused of predatory lending of merchant cash advances. The initial lawsuit, which was filed in March 2024, alleged the respondents engaged in civil and criminal usury and unlicensed origination of high-interest loans due to their fraudulent and deceptive practices. Respondents, without admitting or denying the allegations, agreed to a settlement that, among other things, permanently bars them from engaging in the merchant cash advance business and canceled all debts owed by merchants and guarantors. The settlement included a total judgment of over $1 billion which included over $534 million in debt relief and $3.4 million to the AG’s office. Additionally, the respondents are required to vacate unsatisfied court judgments and terminate any pending legal actions related to these advances.