Senate approves bill restricting confessions of judgment under $5 million after floor debate

The New York State Senate passed a bill restricting confessions of judgment under $5,000,000 after a floor debate that divided members along lines of consumer protection and small‑business finance.

Supporters said the measure protects consumers and small businesses from abusive collection practices; opponents warned it will make small loans harder to obtain. The final roll call showed 39 ayes and 22 nays, and the measure will take effect as specified in the bill.

Senator Krueger spoke in favor of the bill, saying it would "make our practices in New York consistent with most states in the country" and called the change "good consumer protection law." Krueger urged colleagues to support the measure on that basis.

Senator Palumbo, who announced he would vote no, said the bill will harm small lenders and borrowers. "This bill bans every confession of judgment under $5,000,000," Palumbo said on the floor, arguing the change would undercut a common tool lenders use in small, private loans and could chill lending to entrepreneurs who need modest startup capital.

Senator Sanders also expressed support for the legislation, praising Senator Krueger for addressing what he called documented misuse of confessions of judgment.

The roll call listed 22 senators voting in the negative; the clerk read those negative votes into the record before the presiding officer declared the bill passed. The Senate completed the remainder of its calendar and adjourned until the next scheduled session.

The text of the enacted bill and any conforming rule changes will appear in the official printed bill file and the legislative record.