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 financial institutions from requiring borrowers to sign a confession of judgment as part of a contract for a financial product or service. A confession of judgment is a legal clause that allows a creditor to obtain a court order against a debtor without a trial, which would be removed from these agreements under the new rule. The law applies to financial products regulated by state authorities, such as those overseen by the superintendent of financial services, while excluding items already covered by federal agencies or other state consumer protection laws. If passed, this change would take effect ninety days after becoming law, aiming to simplify the terms of consumer financial contracts.