Is it just me or are any of you a little concerned with the direction of how things in the MCA industry are moving with all of these new laws being passed?

First, it was the removal of the COJ.
Second, we have these new APR Disclosure Laws coming into effect with more and more states jumping on the bandwagon.
Now, we have states like Utah and Virginia saying that cash advance funders will be required to be licensed in those states in order to operate.

Thankfully, UT and VA make up a very small % of the overall submissions we're seeing, but it's a bit concerning to me that funders will now need to be licensed in those states, with each state having its own specific requirements.

My worry is that more states will begin following suit when it comes to funders needing to be licensed in those states, similar to how more and more states are going to be requiring APR disclosure on contracts.

If anyone is interested, here's the link to the article referencing the new laws going into effect in UT and VA: https://www.jdsupra.com/legalnews/ut...ation-7549385/

Personally, I operate as a small direct funder with a small team, operating exclusively with my own hard money (no credit facility). I'm concerned that these states requiring licensure may also charge some crazy fee to become licensed. What would happen if each state in the country decided to charge $10-25k to become licensed in that state, and then each state requires contracts to be specific to that state?

I'm sure a lot of the big players with deep pockets will be unaffected but I'm sure you will see a lot of the smaller, boutique providers disappear. Even logistically speaking, if every state required contracts specific to those states, the cost on getting 50 different contracts with state-specific verbiage would be insane, and would also be a logistical nightmare.

What are everyones thoughts on this?