Your Lender Gets Everything. You Have No Rights
Small business owners nationwide have lost assets in a New York minute under an obscure clause pushed by lenders and enforced in Empire State courts. Financers offering high-interest cash advances get unwitting borrowers to sign a “confession of judgment” that gives lenders an automatic win in court if they claim — even fraudulently — that the borrowers have defaulted. Without proof of a broken contract, courts quickly order banks to empty borrowers’ accounts. And with New York marshals collecting 5 percent on each decision, there’s not much incentive for justice.