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

This bill prohibits financial institutions from including "confession of judgment" clauses in contracts for regulated financial products or services. It applies to most consumer financial products (like loans or credit cards) offered by entities regulated under New York's banking or insurance laws, but excludes federally regulated items (e.g., certain securities) or products covered by other state consumer protections. The law bans these clauses, which allow automatic court judgments against consumers without trial, directly affecting lenders and consumers in qualifying financial agreements. The bill takes effect 90 days after enactment.