Regulation

Puff, Puff, Pass the Bill: House Approves Cannabis Banking Bill, Forwards it to Senate

October 10, 2019
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Last month the House of Representatives passed the SAFE Banking Act, which provides for the lifting of red tape preventing cannabis companies from accessing banks and lenders. Currently, such businesses are unable to make use of these financial services as regulators have put an outright ban on such dealings given cannabis’s federal Schedule 1 drug […]

NYC Taxi Industry Leads Charge to Ban Confessions of Judgment Nationwide

September 30, 2019
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New York State may have outlawed entering confessions of judgments (COJs) against out-of-state debtors in their courts, but federal legislators want to see a ban on their use nationwide. On Thursday, the House Financial Services Committee convened for a hearing on predatory debt collection. Notably adding small businesses to the mix with consumers, COJs repeatedly […]

Earnin, Say What’s Your Price? Nas-backed Earnin Comes Under Investigation

September 17, 2019
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Earnin, the self-proclaimed alternative to payday loans, is part of a new online lending category that is under investigation in eleven states and Puerto Rico for its similarities to payday loans. With such loans being banned in sixteen states, the app-based personal loans company has drawn the attention of various regulators after it was suggested […]

Up Next On The New York Legislative Agenda: Funder, Lender, and Broker Licensing

September 10, 2019
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New York State Senator James Sanders Jr. has introduced S6688, a commercial financing licensing bill that would require persons or entities engaging in the business of making or soliciting commercial financing products in New York state to obtain a license from the New York Department of Financial Services. The bill covers small business lenders, merchant […]

New York’s COJ Restrictions Have Been Signed Into Law

August 30, 2019
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cojs

Governor Cuomo has signed S6395, the law that outlaws entering a Confession of Judgment in New York against a non-New York debtor. Rich Azzopardi, a senior advisor to the governor, said on social media that the law has “closed a loophole that allowed unscrupulous creditors to use NY courts to penalize out-of-state consumers with no […]

New York’s COJ Bill Has Been Delivered To The Governor

August 28, 2019
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New York’s infamous Confession of Judgment bill has finally been delivered to the governor for his signature. Although the legislative process offers flexibility to depart from the statutory timelines (as we have witnessed), the governor now presumably has 10 days or less to sign it. Stay tuned. The Confession of Judgment ban is very specific, […]

California DBO Making Progress On Finalizing Rules Required By The New Disclosure Law

July 29, 2019
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Senator Glazer California

Last October, California Governor Jerry Brown signed a new commercial finance disclosure bill into law. The bill, SB 1235, was a major source of debate in 2018 because of its tricky language to pressure factors and merchant cash advance providers into stating an Annual Percentage Rate on contracts with California businesses. The final version of […]

Is The COJ Law In Effect Yet?

July 18, 2019

coj clock

Artwork by Cindy Recile The COJ bill passed, but where’s the governor’s signature? When the legislature passes a bill in New York State, there’s a documented procedure on the Senate’s website for how it becomes law. If the legislature is still in session, the governor has only 10 days to sign it. If the passed […]

Confession of Judgment Bill Still Awaits Governor’s Signature

July 9, 2019
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cuomo speech

New York State Governor Andrew Cuomo will have only ten days to sign S6395, the bill that prohibits companies from entering Confessions of Judgment in New York against non-New York State debtors, once its delivered to him. Only two possible contingencies could prevent that from happening: (1) An official veto (2) a pocket veto Neither […]

WATCH CAPITOL HILL HEARING LIVE: Crushed by Confessions of Judgement: The Small Business Story

June 26, 2019
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us capitol

The House Committee on Small Business will meet for a hearing titled, “Crushed by Confessions of Judgement: The Small Business Story” today at 11:30am. This hearing is intended to bolster support for The Small Business Lending Fairness Act, a bill to outlaw COJs in small business loans and merchant cash advances nationwide. (Read more about […]

It’s Official, The Confession of Judgment Era is Over

June 19, 2019
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The New York State legislature passed a bill (S06395) late Thursday night that effectively eliminates Confessions of Judgment (COJ) in the small business finance industry. The Senate voted in favor 61-1. The Assembly voted in favor 83-43. The new law which goes into effect immediately after Governor Andrew Cuomo signs it, prohibits anyone from filing […]

Did You Watch the NY Assembly and Senate Vote LIVE?

June 19, 2019
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Albany Capitol

FINAL: S06395 HAS PASSED THE ASSEMBLY AND SENATE AND WILL BECOME LAWREAD MORE With Governor Cuomo’s signature, this law immediately prohibits the filing of COJs against non-New York State residents. #NYSenate Bill S6395, sponsored by Senator @bradhoylman, passed 61-1 (unofficial). Relates to judgment by confession:https://t.co/ybRXsLfwUk — New York Senate (@NYSenate) June 19, 2019

That’s All Folks! COJ Ban in New York May Pass on Wednesday

June 17, 2019
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The End

The New York legislature has until Wednesday night to pass two bills that would prohibit the use of COJs, one on out-of-state debtors entirely and the other from being used as a condition in a financial contract. Either or both would effectively outlaw their use in the small business finance industry in New York State. […]

Senator Elizabeth Warren Questions Federal Agencies About Discrimination in Fintech Lending

June 12, 2019
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Elizabeth Warren

Senator Elizabeth Warren and colleague Senator Doug Jones (D-AL) addressed a letter to multiple federal agencies this week to inquire about their individual roles in overseeing fintech, particularly as it pertains to potential discriminatory underwriting. The senators cited a UC Berkeley study that examined discrimination in the era of algorithmic underwriting. “With algorithmic credit scoring,” […]

One New York COJ Bill Moves Forward

June 5, 2019
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New York Assembly

A bill that would prevent companies from using Confessions of Judgment against out-of-state debtors is progressing through the New York Assembly. A07500 cleared the judiciary committee on Tuesday despite some Republican opposition. The milestone comes as no surprise as the judiciary committee chair, Assemblymember Jeffrey Dinowitz, is also the bill’s sponsor. Assemblymembers Niou, DenDekker, Wright, […]

Lawyers: Earn CLE Credits While Learning About Alternative Finance

May 23, 2019
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AFBA CLEe

REGISTER HERE June 13 Sessions June 14 Sessions Case Law Updates Regulatory Download: The Complete Picture TCPA: Defining ATDS, Exploring the TCPA and How Emails are Covered Legislation, Business and Lobbying: How does it work and Does it work at all? Bankruptcy Updates Future Invoice Factoring and Traditional Factoring: Can’t We All Just Get Along? […]

FTC Forum on Small Business Financing & Merchant Cash Advances

May 7, 2019
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United States Federal Trade Commission

RECORDING BELOW At the FTC Forum on Small Business Financing & Merchant Cash Advances this morning, FTC regulators asked questions of a panel of industry representatives about controversial topics, including the use of COJs. Below are some closely paraphrased responses.   On Confessions of Judgment (COJs) Scott Crocket, Founder & CEO, Everest Business Funding The […]

SEC Finding Said that Prosper Misled Investors

April 22, 2019
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Prosper Marketplace

From approximately July 2015 until May 2017, Prosper excluded certain non-performing loans from its calculation of annualized net returns that it reported to its investors, according to an SEC order released last Friday. The order found that Prosper reported overstated annualized net returns to more than 30,000 investors on individual account pages on Prosper’s website […]

Lots of Tech Buzzwords, Scary Problems

April 16, 2019
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End of the word fintech?

advanced machine-learning, algorithms, big data, streamlined, technology, consumer-friendly A federal regulator cut through the shield of fintech buzzwords on Monday when it announced that a darling of online lending valued at $2 billion, failed to properly handle rudimentary loan practices. The lender is Chicago-based Avant, who reportedly settled with the FTC for $3.85 million. According […]

New Jersey Bill Seeks to Eliminate Quick Easy Access to Small Business Loans

March 21, 2019
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New Jersey Capitol Building in Trenton

The speed at which a small business owner can access capital to grow and create jobs in New Jersey is too dangerous and must be stopped. This is the takeaway from a bill (S3617) proposed by New Jersey State Senator Nellie Pou that calls for a minimum 3-day waiting period between when contract terms are […]