An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, in commercial protection, prohibiting confession of judgment provisions.

HB 638 prohibits "confession of judgment" clauses in Pennsylvania contracts, which are terms allowing one party to automatically admit a debt and obtain a court judgment without a trial. This affects businesses and consumers by making such clauses void and unenforceable in new agreements. Exceptions apply to contracts signed before the law's effective date or government contracts entered under existing statutes. The bill takes effect 60 days after enactment.