[Abe Kand]

deBanked officially reports that New Yorks COJ restriction has been signed into law.
Thoughts??

[Abe Kand]

Article here:
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 ties to the state.” He congratulated Senators Brad Hoylman and Assembly Member Jeffrey Dinowitz for their work on the bill.

Senator Hoylman tweeted in response that “the entire business model of lenders who exploited New York’s court system and laws to prey on out-of-state small businesses through confessions of judgment was immoral.”

The Confession of Judgment ban is very specific, it prohibits the entering of a COJ in New York against a non-New York party. It does not prevent parties from filing lawsuits in New York. It does not prohibit COJs from being filed in other states. This law is significant because approximately 99% of COJs being utilized in the small business finance industry were being filed in New York regardless of where the debtor resided. That is because the New York Court system is the fastest and most efficient when it comes to entering COJs and securing a judgment.

The bill was drafted in response to a controversial story series published by Bloomberg reporters Zeke Faux and Zachary Mider that alleged abuses were taking place in the New York courts via COJs.

[leocapgroup]

What state will people use?

[Abe Kand]

What state will people use?

Any other except for NY now. No other choice

[Michael I]

now it is just dumb these emails i got that no more coj except for new york. What that tells me is they will find another way(or state) to do it

[J.Celifarco]

the issue is less with what people will do moving foward, the bigger issue is that every NY COJ that is signed on active deals is now useless

[Abe Kand]

the issue is less with what people will do moving foward, the bigger issue is that every NY COJ that is signed on active deals is now useless

Had to read that twice. Major game changer

[ADiamond]

the issue is less with what people will do moving foward, the bigger issue is that every NY COJ that is signed on active deals is now useless

on the contrary - the bill itself reads;

[b]§ 2. This act shall take effect immediately and apply to judgments by confession entered upon affidavits filed on or after such effective date.[/]

[J.Celifarco]

on the contrary - the bill itself reads;

I was told different but that may be true

[ADiamond]

I was told different but that may be true

I would hope so if that's what the bill says LOL!

[Abe Kand]

Might stop adding them onto the contracts now that the bill is signed. Gonna be an eventful weekend

[J.Celifarco]

on the contrary - the bill itself reads;

actually read that again it means it applies to the filing date. It doesnt matter when the coj was signed you wont be able to file it after the date the bill is signed

[ryan $]

the issue is less with what people will do moving foward, the bigger issue is that every NY COJ that is signed on active deals is now useless

I think there was a Time Period to Transition, no?

Also, Utah and PA COJs are a thing.

Ive seen NY COJ with a Utah COJ on the same deal, just preparing for when NY finally says no more.

[Jstarr]

COJ's aren't enforceable in Florida, haven't been for awhile.

the issue is less with what people will do moving foward, the bigger issue is that every NY COJ that is signed on active deals is now useless

[ADiamond]

Everyone (most everyone) has already adapted in anticipation of this.

[J.Celifarco]

Everyone (most everyone) has already adapted in anticipation of this.

you would hope

[ADiamond]

you would hope

Had an ISO tell me this morning we are the only company left in the industry still requiring COJ's (LOL!)

[Abe Kand]

Had an ISO tell me this morning we are the only company left in the industry still requiring COJ's (LOL!)

I'm still requiring them, Yellow still using them, UFS, Bridge. Pretty much everyone still is. If you have smart lawyer this shouldn't really bother funding/filing.
Interesting to see how this is gonna play out

[Peak Solutions LLC]

I'm still requiring them, Yellow still using them, UFS, Bridge. Pretty much everyone still is. If you have smart lawyer this shouldn't really bother funding/filing.
Interesting to see how this is gonna play out

you're still requiring them bc you white-label Ed Tucker

[Michael I]

my real question i have is if new funders will lose their credit lines from private individuals with out the sales pitch of the coj ,plus they have no traction to prove what it will be now.

[Abe Kand]

my real question i have is if new funders will lose their credit lines from private individuals with out the sales pitch of the coj ,plus they have no traction to prove what it will be now.

That might just happen.

[Michael I]

That might just happen. No other real means of collecting without use of COJ

exactly guys like abe heavily underwrite based off how they can collect. good luck bro

[Abe Kand]

exactly guys like abe heavily underwrite based off how they can collect. good luck bro

precisely. Doesn't everyone lol. Good luck to you as well

[BillionzandBillionz]

That might just happen. No other real means of collecting without use of COJ

No there are alot of other LEGAL ways, you just seem to be new to the industry. do some homework, there are other, maybe better ways.

[stackcity_4208]

deBanked officially reports that New Yorks COJ restriction has been signed into law.
Thoughts??

great