New York Weighs Law to Crack Down on Predatory Loans With 400% Rates
- Bill in Albany would restrict use of confessions of judgment
- More than 5,500 judgments filed in first five months of 2019
Photographer: Getty Images
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Last year, an array of New York officials, from county clerks to Governor Andrew Cuomo, promised to stop a group of predatory lenders that have been using the state court system to bludgeon small businesses nationwide.
So far, little has changed. Lenders offering so-called merchant cash advances obtained more than 5,500 New York court judgments against borrowers in the first five months of this year, about the same monthly pace as in 2018, according to data compiled by Bloomberg News.