Someone sent this to me!! Very shady practice to say the least!! I had no clue about it…
Posting here to make people aware…
https://www.bloomberg.com/graphics/2018-confessions-of-judgment/?ll_push_args
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Wow, this is scary! I get these business loan applications in the mail all the time. Reading this article makes me glad I’ve never tried to get one! I had no idea this kind of thing was happening. Thank you for sharing this @JayP
Sounds like very disparate business people willing to do anything to get a loan. She was in business with the devil while praying for help. We all know how that will end.
Maybe. However, more importantly, the practices followed by, and supported by spurious laws, such lenders is shady to say the least!! Simply crazy
You said you’re posting to make people aware, but aware of what exactly? Have any park owners been asked to sign a confession of judgment as part of a park loan?
Also, the article is very dramatized. I’m far from an expert on this subject, but a confession of judgment doesn’t seem that crazy to me. It basically forces a borrower to sue the lender if the borrower feels the lender is out of line, versus the typical reverse situation where the lender is forced to sue a borrower if the borrower defaults. Someone could write an equally dramatized article about a bunch of deadbeat borrowers who didn’t sign a confession of judgment, some of whom committed fraud to obtain the loan, and then worked the court system to slow down and obfuscate collection actions by the lender.
Wow! Didn’t expect this much “backlash” for posting an article about information that I was not aware, or to put it less offensively for some - didn’t know, of!!
I had never heard the term, “Confessions of Judgment” or what it meant! So for example, based on what is written in the article, I had never heard that lenders can put a freeze on a borrowers bank account without any notification whatsoever, even when the lender was making on time payments. That was the whole reason for posting it here. I thought some people might learn something that they may not know of. I know that I learn something new everyday and that makes my life that much more interesting!!
I do not know if any park owners have been asked to sign a confession of judgement as part of a park loan. Didn’t know I needed to do that but next time I will ask before posting!! Also I did not know that every park owner only borrows money for park loans!
In any case, I did not and do no want to get into an extended argument over something that I posted innocently and without any an hidden agenda as such. Didn’t mean to offend anyone, so please don’t get offended for no reason!!
It was a good read and interesting perspective.
My takeaway (and further reinforced belief) is that business owners have zero government protection from predatory lenders and must take full responsibility for legal instruments they execute.
On one hand I empathize for the innocently affected people who took loans from what appear to be a modern day loan shark for business owners. On the other I say to myself - anyone who accepts a loan structured like these should know that… the lender is not going to work with you if you have any issues at all arise. Back in the day it would have been “give me my money now or I will break your (insert expletive) legs!!!” Say it with a Boston or New York accent for effect.
Good businesses get reasonable loans from reasonable lenders. Risky businesses get risky loans from shitty lenders.