Bill Text: NY S03851 | 2019-2020 | General Assembly | Introduced

Bill Title: Prohibits the inclusion of a confession of judgment in a contract or agreement for a financial product or service.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-02-20 - REFERRED TO CONSUMER PROTECTION [S03851 Detail]

Download: New_York-2019-S03851-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 20, 2019
        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Consumer Protection
        AN ACT to amend the general business law, in relation to prohibiting the
          inclusion of a confession of judgment in a contract or agreement for a
          financial product or service
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The general business law is amended by adding a new section
     2  396-aaa to read as follows:
     3    §  396-aaa.  Confession of judgment requirement for certain contracts;
     4  prohibition. 1. No person shall require a confession of judgment in  any
     5  contract or agreement for a financial product or service.
     6    2.  As used in this section the following terms shall have the follow-
     7  ing meanings:
     8    (a) "Financial product or service" shall mean any financial product or
     9  financial service  offered  or  provided  by  any  person  regulated  or
    10  required  to  be  regulated  by the superintendent of financial services
    11  pursuant to the banking law or the insurance law or any financial  prod-
    12  uct or service offered or sold to consumers except financial products or
    13  services:  (i)  regulated  under the exclusive jurisdiction of a federal
    14  agency or authority, (ii) regulated  for  the  purpose  of  consumer  or
    15  investor protection by any other state agency, state department or state
    16  public authority, or (iii) where rules or regulations promulgated by the
    17  superintendent  of  financial  services  on  such  financial  product or
    18  service would be preempted by federal law.
    19    (b) "Financial product or service regulated for the purpose of consum-
    20  er or investor protection": (i) shall include (A) any product or service
    21  for which registration or licensing is required or for which the offeror
    22  or provider is required to be registered or licensed by state  law,  (B)
    23  any  product  or service as to which provisions for consumer or investor
    24  protection are specifically set forth for such  product  or  service  by
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 3851                             2
     1  state  statute  or  regulation  and (C) securities, commodities and real
     2  property subject to the provisions  of  article  twenty-three-A  of  the
     3  general  business  law,  and (ii) shall not include products or services
     4  solely  subject  to other general laws or regulations for the protection
     5  of consumers or investors.
     6    § 2. This act shall take effect on the ninetieth day  after  it  shall
     7  have become a law.