At Accion, we are committed to connecting small business owners with the financing and advice it takes to create and grow healthy enterprises. You deserve an efficient and transparent borrowing experience that helps meet the needs of your business in an ethical way. As a founding member of the Responsible Business Lending Coalition, we helped create the Small Business Borrowers’ Bill of Rights, which outlines six fundamental rights we believe every borrower should have.
The federal Truth in Lending Act, which we count on for transparent disclosures in consumer lending, does not protect small businesses owners. In this regulatory gap, predatory small business lenders using abusive, irresponsible practices have become prevalent. One such practice was recently highlighted by Bloomberg reporters in the video and story below.
If you’re running a small business in the U.S. and you need to borrow money, you may be forced to sign a “confession of judgment” – an obscure legal document that gives your lender the right to seize your assets with no trial or advance warning. Bloomberg investigative reporters Zeke Faux and Zachary Mider discovered that some lenders have used this strategy to seize borrowers’ money thousands of times in recent years, often bankrupting businesses and ruining lives. Watch the video below to learn more about confessions of judgment: