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Rep. Jacobson urges curbs on merchant‑cash advances: APR disclosure, court protections for borrowers
Summary
Rep. Jonathan Jacobson told the Banking Committee HB 5211 would require estimated APR disclosures for sales‑based financing, prohibit contractual waivers of notice/hearing for prejudgment remedies and ban nondisclosure clauses; industry groups warned the bill could restrict access to fast capital.
State Rep. Jonathan Jacobson, the bill author, told the Joint Committee on Banking that HB 5211 responds to widespread harms he has seen in merchant‑cash‑advance (MCA) and sales‑based financing arrangements. "I view the industry to be nothing less than the golden age of piracy," Jacobson said, drawing on his experience as a civil litigator to describe contracts that can freeze operating accounts and remove borrowers’ access to due process.
Jacobson said the bill would: require an estimated APR…
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