Bill > S03695

This bill prohibits the inclusion of a confession of judgment in any contract or agreement for a financial product or service in New York. A confession of judgment is a legal mechanism that allows a creditor to obtain a judgment against a debtor without going through a traditional court trial, effectively bypassing the normal legal process. The bill defines "financial product or service" broadly, covering any financial offering regulated by the state superintendent of financial services, with some specific exceptions such as products exclusively regulated by federal agencies or other state agencies. The bill's definition also includes financial products that require registration or licensing, those with specific consumer protection provisions, and certain securities, commodities, and real property products. The provisions aim to protect consumers by preventing businesses from using confession of judgment clauses that could potentially strip consumers of their legal rights to contest a claim. The law will go into effect 90 days after it is signed, giving businesses time to adjust their contract practices to comply with the new restriction.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/S3695