senate Bill S3851

2019-2020 Legislative Session

Relates to prohibiting certain judgments by confession; and prohibiting certain financial institutions from using a marshal to execute certain judgments

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Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (11)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 28, 2020 committed to rules
Mar 11, 2020 advanced to third reading
Mar 10, 2020 2nd report cal.
Mar 04, 2020 1st report cal.578
Feb 10, 2020 amend by restoring to original print 3851
Jun 19, 2019 ordered to third reading cal.1684
committee discharged and committed to rules
Feb 20, 2019 referred to consumer protection
Jan 08, 2020 referred to consumer protection
Jun 20, 2019 recommitted to rules
Jun 19, 2019 amended on third reading (t) 3851a

Votes

view votes

Mar 4, 2020 - Consumer Protection committee Vote

S3851
6
1
committee
6
Aye
1
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Consumer Protection committee vote details

Consumer Protection Committee Vote: Mar 4, 2020

nay (1)

Jun 19, 2019 - Rules committee Vote

S3851
19
0
committee
19
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

Co-Sponsors

S3851 (ACTIVE) - Details

See Assembly Version of this Bill:
A3636
Current Committee:
Senate Rules
Law Section:
Civil Practice Law and Rules
Laws Affected:
Add §396-aaa, Gen Bus L
Versions Introduced in 2021-2022 Legislative Session:
S2632, A2443

S3851 (ACTIVE) - Summary

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

S3851 (ACTIVE) - Sponsor Memo

S3851 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3851
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             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:
 
   Section 1. The general business law is amended by adding a new section
 396-aaa to read as follows:
   §  396-AAA.  CONFESSION OF JUDGMENT REQUIREMENT FOR CERTAIN CONTRACTS;
 PROHIBITION. 1. NO PERSON SHALL REQUIRE A CONFESSION OF JUDGMENT IN  ANY
 CONTRACT OR AGREEMENT FOR A FINANCIAL PRODUCT OR SERVICE.
   2.  AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   (A) "FINANCIAL PRODUCT OR SERVICE" SHALL MEAN ANY FINANCIAL PRODUCT OR
 FINANCIAL SERVICE  OFFERED  OR  PROVIDED  BY  ANY  PERSON  REGULATED  OR
 REQUIRED  TO  BE  REGULATED  BY THE SUPERINTENDENT OF FINANCIAL SERVICES
 PURSUANT TO THE BANKING LAW OR THE INSURANCE LAW OR ANY FINANCIAL  PROD-
 UCT OR SERVICE OFFERED OR SOLD TO CONSUMERS EXCEPT FINANCIAL PRODUCTS OR
 SERVICES:  (I)  REGULATED  UNDER THE EXCLUSIVE JURISDICTION OF A FEDERAL
 AGENCY OR AUTHORITY, (II) REGULATED  FOR  THE  PURPOSE  OF  CONSUMER  OR
 INVESTOR PROTECTION BY ANY OTHER STATE AGENCY, STATE DEPARTMENT OR STATE
 PUBLIC AUTHORITY, OR (III) WHERE RULES OR REGULATIONS PROMULGATED BY THE
 SUPERINTENDENT  OF  FINANCIAL  SERVICES  ON  SUCH  FINANCIAL  PRODUCT OR
 SERVICE WOULD BE PREEMPTED BY FEDERAL LAW.
   (B) "FINANCIAL PRODUCT OR SERVICE REGULATED FOR THE PURPOSE OF CONSUM-
 ER OR INVESTOR PROTECTION": (I) SHALL INCLUDE (A) ANY PRODUCT OR SERVICE
 FOR WHICH REGISTRATION OR LICENSING IS REQUIRED OR FOR WHICH THE OFFEROR
 OR PROVIDER IS REQUIRED TO BE REGISTERED OR LICENSED BY STATE  LAW,  (B)
 ANY  PRODUCT  OR SERVICE AS TO WHICH PROVISIONS FOR CONSUMER OR INVESTOR
 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.

Co-Sponsors

S3851A - Details

See Assembly Version of this Bill:
A3636
Current Committee:
Senate Rules
Law Section:
Civil Practice Law and Rules
Laws Affected:
Add §396-aaa, Gen Bus L
Versions Introduced in 2021-2022 Legislative Session:
S2632, A2443

S3851A - Summary

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

S3851A - Sponsor Memo

S3851A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3851--A
     Cal. No. 1684
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 20, 2019
                                ___________
 
 Introduced  by  Sens.  SANDERS,  MAYER, PARKER -- read twice and ordered
   printed, and when printed to be committed to the Committee on Consumer
   Protection -- committee discharged and  said  bill  committed  to  the
   Committee  on Rules -- ordered to a third reading, amended and ordered
   reprinted, retaining its place in the order of third reading
 
 AN ACT to amend the civil practice law and rules, in relation to prohib-
   iting certain judgments by confession; and prohibiting certain  finan-
   cial institutions from using a marshal to execute certain judgments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The opening paragraph of subdivision (a) of section 3218 of
 the civil practice law and rules, as amended by chapter 311 of the  laws
 of  1963,  is  amended  and  a  new  subdivision (e) is added to read as
 follows:
   Except as provided in section thirty-two hundred one OF  THIS  ARTICLE
 AND  SUBDIVISION  (E)  OF  THIS SECTION, a judgment by confession may be
 entered, without an action, either for money due or to become due, or to
 secure the plaintiff against a contingent liability  in  behalf  of  the
 defendant, or both, upon an affidavit executed by the defendant;
   (E)  PROHIBITION  ON  CERTAIN  JUDGMENTS BY CONFESSION. NO JUDGMENT BY
 CONFESSION MAY BE:
   1. ENTERED ON  ANY  AMOUNT  DUE  FROM  ONE  OR  MORE  INDIVIDUALS  FOR
 PERSONAL,  FAMILY,  HOUSEHOLD,  CONSUMER,  INVESTMENT,  OR  NON-BUSINESS
 PURPOSES;
   2. ENTERED ON ANY AMOUNT UNDER TWO HUNDRED FIFTY THOUSAND DOLLARS  DUE
 FROM ANY PERSON FOR ANY PURPOSE;
   3.  REQUIRED  AT  THE  TIME  A LOAN IS ORIGINATED OR AS A CONDITION OF
 RECEIVING A LOAN; OR
   4. ENTERED ON ANY AMOUNT DUE FROM A PERSON THAT:
   (I) IS CURRENTLY A NONRESIDENT OF THE STATE;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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