Governor of New York Limits Power of Merchant Cash Advance Lenders to Use Confessions of Judgment

As a follow-up to our series of articles on the use of Merchant Cash Advances (see here, here, and here), we learned today that New York Governor Andrew Cuomo signed a bill last week aimed at preventing predatory lenders from using the state's court system to seize the assets of small businesses nationwide.

According to Bloomberg, "the new law prohibits use of confessions of judgment against individuals and businesses located outside of the state." As we learn more about this new legislation (as well as the efforts in Congress to limit confessions of judgment), we will update our postings.

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