Relates to prohibiting the inclusion of a confession of judgment in a contract or agreement for a financial product or service

This bill prohibits lenders and other financial service providers from requiring customers to sign a confession of judgment as part of a contract. A confession of judgment is a legal clause that allows a creditor to obtain a court judgment against a debtor without a full trial if the debt is not paid. The law applies to financial products and services regulated by the state's superintendent of financial services, excluding those already overseen by federal agencies or other state consumer protection bodies. By banning this specific clause, the legislation aims to ensure that consumers must participate in a standard legal process to resolve disputes over unpaid debts. The changes will take effect 90 days after the bill becomes law.