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New York Moves to Ban Confessions of Judgment for Out-of-State Loans

  • Measure aimed at abusive collections by cash-advance firms
  • Lawmaker plans hearings on city marshals’ role in industry
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Source: Getty Images

New York lawmakers took steps to prevent predatory lenders from using the state’s court system to seize the assets of small businesses nationwide.

The state Assembly approved a bill late Thursday prohibiting the use of confessions of judgment against individuals and businesses located outside of the state. The Senate passed the measure earlier this week.