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Borrower Protection: Ban on Clauses Waiving Right to Court Defense

New law prohibits credit and loan agreements from including clauses that allow creditors to obtain a court judgment without notifying the debtor or allowing them to defend themselves. This means individuals and small businesses taking on debt will retain their right to be heard in court in case of a dispute.
Key points
Prohibits clauses in credit agreements that force borrowers to give up their right to notice and a court hearing.
Ensures borrowers, including small businesses, retain their right to defend themselves if sued over a debt.
The changes apply to various forms of debt, including loans and sales of future income.
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Status:
Expired
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Additional Information
Small Business Lending Fairness Act
Print number: S 1119
Sponsor: Sen. Brown, Sherrod [D-OH]
Process start date: 2021-04-14
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-04-17
Source data: api.congress.gov
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Summary & Status

Key Questions about Borrower Protection: Ban on Clauses Waiving Right to Court Defense

A structured overview of the legislative process, official sources, status and civic context.

What is the official ID of this bill?

The official print number for this legislation is S 1119.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-04-14.

What are the main provisions?

Key points include:

  • Prohibits clauses in credit agreements that force borrowers to give up their right to notice and a court hearing.
  • Ensures borrowers, including small businesses, retain their right to defend themselves if sued over a debt.
  • The changes apply to various forms of debt, including loans and sales of future income.

What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Brown, Sherrod [D-OH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

Analysis and Potential Impact of S 1119

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge. Review our public AI processing logs for full transparency, and use Lustra to track active legislation for instant status push notifications.

CATEGORIES

Economy Courts and Law