The House Committee on Financial Services passed two important bills on November 14, 2019, which, if passed by the full House, would amend the federal Fair Debt Collection Practices Act.
For unsuspecting (and often desperate) small business owners who took out Merchant Cash Advances as a lifeline to save their livelihood, the filing of a Confession of Judgment (COJ) becomes the businesses deathblow.
Small businesses, like all businesses, need cash to operate. But for many small businesses, gaining access to much-needed capital can be difficult. This is especially true if the business doesn’t have an established track record of success or has a poor credit history. Many traditional financing sources (such as banks) don’t find it worth their while to take the risk, especially if the amount needed is small.