H.R. 6795 · 116th Congress
To prohibit confessions of judgment in connection with the extension of covered credit or creation of covered debt, and for other purposes.
- Stage
- In committee
- Sponsor
- Nydia Velázquez
- Introduced
- 2020-05-08
- Latest action
- 2020-05-08 · Introduced in House
Summary
This bill prohibits a confession of judgment or similar agreement as a condition to a loan or extension of credit of $2 million or less during the COVID-19 (i.e., coronavirus disease 2019) emergency period and for 120 days following. (A confession of judgment is an agreement to a judgment of liability without notice and opportunity to be heard in court in the event of the default of a borrower.)