We're not talking about normal people - we're talking about businesses. It's been outlawed for regular people across the board. But because they can still app

We're not talking about normal people - we're talking about businesses. It's been outlawed for regular people across the board. But because they can still apply to businesses in a few states, we end up with this. Businesses are supposed to be a bit more prepared and knowledgeable when it comes to legal matters so it's expected that the playing field is a bit more fair and they will understand what they are signing and be able to negotiable a contract better than a regular person who can't comprehend all the legalese. And technically, they do have an alternative - refuse to sign them and don't do business with them. No one is saying these businesses are required to take these loans on these terms. The owners simply don't understand what they are signing. Anyone who actually is a good risk for a loan and refuses to sign these documents shouldn't really have a problem getting someone to agree to omit that as part of the paperwork. I really think this is at least partially a matter of due diligence on the part of the business seeking the loan. If I ran a small company and found out that an officer/exec authorized to do business under the company name took out a loan and signed one of these confessions, there's a pretty decent chance they would be fired regardless of any pending legal action. If legal action was indeed filed, they would definitely be fired for a lack of due diligence on the documents that resulted in signing away company rights.