Bill > HB638

This bill amends Pennsylvania's commercial law to prohibit "confession of judgment" provisions in contracts, which are clauses that allow one party to automatically enter a legal judgment against another party without a traditional court hearing. Specifically, the bill makes it illegal for any contract or agreement to include a provision that lets one party confess judgment against another party, effectively removing a powerful legal tool that could potentially be used to quickly seize assets or impose financial penalties without due process. The bill includes two key exceptions: contracts entered into before the bill's effective date and contracts entered into by the Commonwealth or municipalities under specific statutory authority. Any confession of judgment provision that violates this new law would be considered void and unenforceable. The legislation will take effect 60 days after its enactment, giving parties time to review and modify existing contracts. This bill aims to protect parties from potentially abusive contractual terms that could circumvent normal judicial review processes.

Business and Industry

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=638