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Who cares
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Sponsors
No co-sponsors yet.
History
- Substituted by A3409
- Ordered to third reading cal.846
- Committee discharged and committed to rules
- Reported and committed to codes
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Redefines overlimit charge under retail installment credit agreements and under installment obligations to exclude interest charges and other fees in determination
Vetoed · Sponsor N. Nick Perry
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the personal property law and the banking law, in relation to excluding finance, service or interest charges and other authorized fees from the amount used to determine whether the specified credit limit has been exceeded for the purpose of imposing an over limit charge in retail instalment credit agreements and other installment obligations
Purpose
Requires that creditors and financial institutions exclude all finance, interest and service charges and/or other authorized fees, such as late and annual fees, from the amount used to determine a balance with the explicit purpose of imposing "over the limit" charges.
Summary of provisions
The closing paragraph of Section 1, Subdivision 5 of Section 413 of the Personal Property Law is designated Paragraph (c), and Paragraph (b) of such Subdivision is amended by Chapter 1 of the Laws of 1994. This bill also amends Subparagraph (vii) of Paragraph (e) of Subdivision 5 of Section 108 of the Banking Law, as amended by Chapter 1 of the Laws of 1994.
Justification
Current banking laws permit creditors and financial institutions to charge "over-the-limit" fees on account balances that exceed the maximum credit allowed. However, finance charges, annual fees and/or late fees are added to the balance, and are often directly responsible for causing the monthly total to exceed the maximum credit limit. This practice, which can be repeated each succeeding payment period, pushes the balance over the limit and then penalizes the account holder by assessing an over the limit charge. Accordingly, this bill will require that creditors and financial institutions exclude finance, interest and service charges and/or other authorized fees, such as late and annual fees. As a result, this bill will ensure that balances on purchases only are subject to over the limit fees, and help protect consumers from incurring excessive, unreasonable fees.
Prior legislative history
New Bill.
Fiscal implications
None to the State.
Effective date
This act shall take effect on the sixtieth day after it shall have become a law and shall apply to retail installment credit agreements under section 413 of the personal property law and to installment obligations under section 108 of the banking law, that are issued, renewed, amended or restated on or after the effective date of this act.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.