Predatory lending practices chewing up small businesses across America
Look out, the stranger on the phone warned. They’re coming for you.
Read on. (Hat tip from Bloomberg)
How Confessions of Judgment Work
Wants a loan
Borrower signs a confession of judgment as part of the application, agreeing to lose any dispute
Sends money to borrower
Borrower misses a payment, or so the lender claims
Lender sends confession to clerk,
who rubber-stamps it
New York City Marshal
Demands money from borrower’s bank
Hands money over to lender
Gets money back, with interest and fees tacked on.
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