FTC Commissioner Calls for Review of Small-Business Loan Practices
- ‘We are accountable for cleaning up this market,’ he says
- Democratic commissioner targets use of confessions of judgment
Rohit Chopra, Federal Trade Commission commissioner.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The U.S. Federal Trade Commission should scrutinize potentially abusive terms in small-business lending contracts, including the use of a legal instrument known as a confession of judgment, Commissioner Rohit Chopra said.
Such terms “have led to a flood of questionable legal actions” against small-business borrowers, Chopra said at an agency forum in Washington on Wednesday. “We are accountable for cleaning up this market.”