Bill Text: NY S05256 | 2023-2024 | General Assembly | Introduced

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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 4-0)

Status: (Engrossed) 2024-06-05 - ordered to third reading rules cal.446 [S05256 Detail]

Download: New_York-2023-S05256-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5256

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 28, 2023
                                       ___________

        Introduced  by  Sens.  SANDERS,  MAYER,  PARKER, RAMOS -- 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  394-bb to read as follows:
     3    § 394-bb. 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05701-01-3
        S. 5256                             2

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