Notwithstanding the provisions of section thirty-two hundred eighteen, no judgment by confession shall be entered on any affidavit which was executed prior to the time a default in the payment of an installment occurs in connection with the purchase for fifteen hundred dollars or less of any commodities for any use other than a commercial or business use upon any plan of deferred payments whereby the price or cost is payable in two or more installments. Any judgment entered in violation of this section is void and unenforceable.
§ 3201.Confession of judgment before default on certain installment contracts invalid
Article 32. Accelerated Judgment · Last amended 1963 · Last verified July 21, 2026
In one sentenceCPLR 3201 voids any confession of judgment signed before a buyer defaults on a small installment purchase of consumer goods priced at $1,500 or less, protecting ordinary buyers from judgments entered before they ever miss a payment.
Full Text of CPLR 3201
Plain-English Summary
Confession of judgment lets a creditor skip a lawsuit entirely: the debtor signs an affidavit agreeing in advance that judgment can be entered against them, and the creditor files it with the county clerk. CPLR 3201 draws a boundary around that shortcut for one group of buyers who need protection most.
The rule kicks in when someone buys ordinary goods for personal use, priced at $1,500 or less, and pays for them in two or more installments. If the seller has that buyer sign a confession of judgment before any payment is missed, the confession cannot support a valid judgment. A judgment entered on it is void and unenforceable, not merely open to challenge.
The protection has a narrow reach. It doesn't touch commercial or business purchases, and it doesn't stop a seller from pursuing a debtor once an actual default occurs. What it blocks is the practice of locking in a judgment before the buyer ever falls behind, closing off a loophole that once let sellers of everyday household goods hold a signed judgment over a buyer who hadn't yet done anything wrong.
Frequently Asked Questions
What does CPLR 3201 protect against?
It stops sellers from having a buyer sign away their right to a hearing before any payment is even missed, on a small personal installment purchase.
Does CPLR 3201 apply to purchases for a business?
No. The protection only covers purchases for personal, family, or household use, not commercial or business purchases.
What is the dollar limit under CPLR 3201?
The rule covers purchases of $1,500 or less financed through two or more installment payments.
What happens to a judgment entered in violation of CPLR 3201?
The judgment is void and unenforceable from the start, so a court can set it aside even after it has been entered.
How does CPLR 3201 relate to confession of judgment under CPLR 3218?
CPLR 3218 lets a debtor confess judgment generally, but CPLR 3201 carves out an exception: a confession signed before default on a small consumer installment purchase cannot support a judgment.
Can a buyer still be sued after defaulting on a small installment purchase?
Yes. CPLR 3201 only blocks confessions signed before a default. Once the buyer misses a payment, the seller can pursue an ordinary lawsuit or a properly timed confession.
Advisory Committee Notes
This section is derived from subd 2 of former § 543 with only minor language changes. It was added to the provisions governing judgment by confession in 1941. Laws 1941, c 864, § 1. It reflects a legislative policy to protect small noncommercial installment buyers against the possibility of having judgments entered against them before any default. Protection of noncommercial installment buyers is the purpose also of the Retail Instalment Sales Act of 1957 ( Pers Prop Law §§ 401–418) but the coverage of section 543(2) is not congruent, as to types of sales included, with that of the 1957 act. The word “affidavit” has been substituted for “statement” to conform with the procedure prescribed in the section governing judgment by confession. See CPLR § 3218.
Amendment History
Add, L 1962, ch 308; amd, L 1963, ch 311, § 1, eff Sept 1, 1963.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
Also known as: confession of judgment installment contract New YorkCPLR 3201 consumer protectionvoid confession of judgment New Yorksmall installment purchase confession of judgmentCPLR 3201 $1,500 threshold