Hearing: Crushed by Confessions of Judgement: The Small Business Story

Committee on Small Business

Wednesday, June 26, 2019 (11:30 AM)

2360 RHOB
Washington, D.C.
Time and again, small businesses report one of the biggest challenges they face in starting, operating, or expanding a business is access to capital. Unfortunately, some small firms fall victim to merchant cash advance companies who require borrowers to sign a document called a confession of judgment (COJ) as part of an application. By signing, small business borrowers agree in advance to automatically lose in the event of a legal dispute. That lender can then accuse a borrower of not paying, without presenting proof, and have a court judgment signed by a clerk the same day. At that point the lender can present the COJ to the borrower’s bank demanding funds, leaving small business owners penniless overnight and forced to close their business. This hearing will enable the Committee to examine this practice as Members seek to address this issue. Members will hear from a variety of witnesses detailing the legalities of the practice, its use, and impact on small business borrowers.

Witnesses

Mr. Hosea Harvey
Law Professor and Consumer Finance Law Expert, Philadelphia, PA

  • Witness Statement [PDF] Added 06/27/2019 at 09:32 AM
  • Witness Truth in Testimony [PDF] Added 06/27/2019 at 09:32 AM
  • Witness Biography [PDF] Added 06/27/2019 at 09:32 AM

Mr. Jerry Bush
Former Owner, JB Plumbing & Heating of Virginia, Inc., Roanoke, VA

  • Witness Statement [PDF] Added 06/27/2019 at 09:32 AM
  • Witness Truth in Testimony [PDF] Added 06/27/2019 at 09:32 AM
  • Witness Biography [PDF] Added 06/27/2019 at 09:32 AM

Mr. Shane Heskin
Partner, White and Williams, LLP., Philadelphia, PA

  • Witness Statement [PDF] Added 06/27/2019 at 09:32 AM
  • Witness Truth in Testimony [PDF] Added 06/27/2019 at 09:32 AM
  • Witness Biography [PDF] Added 06/27/2019 at 09:32 AM

Mr. Benjamin R. Picker
Shareholder, McCausland Keen + Buckman, Devon, PA

  • Witness Statement [PDF] Added 06/27/2019 at 09:32 AM
  • Witness Truth in Testimony [PDF] Added 06/27/2019 at 09:32 AM
  • Witness Biography [PDF] Added 06/27/2019 at 09:32 AM

Hearing Record

  • Hearing Notice [PDF]
  • Hearing: Witness List [PDF]

First Published: June 20, 2019 at 02:14 PM
Last Updated: June 27, 2019 at 09:32 AM


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