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How New York’s court system turned into a debt-collection machine
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A series from Bloomberg this week sheds light on a predatory lending practice that’s turning New York’s court system into a debt-collection machine. Some lenders that offer cash advances to small businesses require their customers to sign what’s called a “confession of judgment.” That means before borrowers get a loan, they sign away their right to defend themselves if the lender takes them to court. Then lenders can, without proof, accuse borrowers of not paying and legally seize their assets. Marketplace host Kai Ryssdal talked with Bloomberg’s Zack Mider about the story.
Click the audio player above to hear the full interview.
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