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Senator James Sanders Jr. Announces Senate Passage of Bill S.3695 to Protect Small Businesses from Predatory Lending
Albany, NY — Senator James Sanders Jr. proudly announces the Senate passage of S.3695, a critical consumer‑protection bill that prohibits the use of confessions of judgment in contracts for financial products or services. This legislation represents a major step forward in safeguarding New York’s small businesses from predatory lenders who have long exploited this legal loophole.
A confession of judgment allows a lender to obtain a court judgment against a borrower without ever filing a lawsuit. For years, unscrupulous lenders have used this tactic to seize assets, drain bank accounts, and financially devastate tens of thousands of small businesses — including many that never missed a payment.
“Small businesses are the backbone of our communities, and they deserve protection from predatory practices that threaten their survival,” said Senator James Sanders Jr. “Confessions of judgment have been weaponized against hardworking entrepreneurs. With S.3695, we are closing the door on this abuse once and for all.”
Under S.3695, lenders will no longer be permitted to include confessions of judgment in any contract or agreement for a financial product or service. This ensures that disputes must go through proper legal channels, giving small businesses the due process they deserve.
The bill now heads to the Assembly for consideration.
“Today’s vote is a victory for fairness, transparency, and economic justice,” Senator Sanders added. “We will continue fighting to ensure that every small business in New York has a fair chance to grow and thrive.”
For more information, please contact the Office of Senator James Sanders Jr.
Office of Senator James Sanders Jr.
Phone: (718) 523-3069
