Federal Bill Banning Confessions of Judgement

 

Democratic representative to the United States Congress, Nydia Velasquez had a reason to celebrate: the bill she co-sponsored, HR 3490, to ban the use of COJs (Confessions of Judgement) passed the vote in the House Financial Committee, with the next stage being a floor vote in the House of Representatives.


The bill faces stiff opposition in the Senate, even if passed the House vote, but it is worth noting that a number of Republicans, including prominent members of the Republican party, such as Senator Marco Rubio and bill co-sponsor Rep. Roger W. Marshall, spoke in favor of the bill.


The entire team at Orumfy are all in favor of such measures, aimed at curtailing predatory lending tactics, but it’s ironic that these measures were sparked by a Bloomberg News article, that upon further investigation appeared to be based on false evidence.
Earlier this year, New York has already passed its version of the bill banning the use of COJs by NY State companies against residents outside of the state.


However, without the nationwide ban, all that NY bill really achieved is that NY based lenders with continued interest in the use of COJs simply moved their headquarters to states with laws allowing such practice.


While commendable, all NY Congress and Governor really achieved, is a sizeable loss of taxable income for the state.

Newsroom @ Orumfy