Very sick. Even if you have a confession of judgement, lying in a signed affidavit is a crime, no? Why don't these people get prosecuted
The problem is that in many (if not most) cases, the signed affidavit isn't necessarily lying. One missed payment, and they legally have a judgment (based on this sick NY law).
Now, in the best of times, when you have a desperate borrower, who's struggling for every penny, going to court against deep pocketed well seasoned lender, it's an uphill battle.
Just look at how many legitimate debt collection judgments are default judgments. I would say it's upward of 95%. Most people don't know the legal system and legal protections they have, and just don't show up. If the debt is small enough, one can win (or obtain a very favorable settlement) against the creditors just by attrition. Part of their calculation is a fast in and out of the court system. Once you start dragging them back to court over and over, it might no longer be economical for them. Even on larger debts, many times with the help of the court (at least in NY) one can get very favorable settlements. The confession of judgments just automatically turns the tables against the borrower. It should be made unconstitutional in NY, and the Federal Government should step in to bar its enforcement across state lines.
The entire "business cash advance" business should also be brought into line, so that they can't get away so easily with their predatory practices and usury rates.