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Who cares
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Sponsors
2 Co-sponsors
History
- Referred to transportation
- Referred to transportation
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the vehicle and traffic law, in relation to requiring notice prior to and after the repossession or retaking of a motor vehicle or motorcycle, opportunity to cure default, and notice of sale
Purpose or general idea of bill
The purpose of the bill is to offer New York State Consumers protection under the terms of the law pertaining to the repossession of motor vehicles or motorcycles.
Summary of specific provisions
The law requires that a creditor issue a notice 10 days prior to repossessing a vehicle. This written notice of intent to repossess must show the past due amount, scheduled repossession date, towing cost, daily storage rate and any other cost relating to the repossession which a consumer maybe required to pay. The notice must be sent to the consumer and all co-signers on the loan by registered or certified mail within five days after the repossession.
Read the full memo (620 words)
The notice must disclose:
* The consumer's right to redeem the vehicle and amount payable for it; * The rights of the owner as to a resale, and his or her liability for a deficiency; and the exact location where the motor vehicle or motorcycle is stored and the address where any payment is to be made or notice delivered.
The persons repossessing the vehicle shall retain the motor vehicle or motorcycle for 15 days after the above notice. During that 15 day period the owner may:
* Redeem and take possession of the motor vehicle or motorcycle; * Resume the performance of the underlying agreement.
To redeem the goods (vehicles) the owner must:
* Tender the amount, due under the underlying agreement at the time of redemption, without giving effect to any provision which allows acceleration of any installment otherwise payable after that time; * Tender performance of any other promise for the breach of which the motor vehicle or motorcycle was repossessed; and - Tender the actual and reasonable expenses of retaking and storing the motor vehicle or motorcycle consistent with the first notice.
The creditor shall sell the repossessed motor vehicle or motorcycle at private sale or public auction after notifying the owner of the time and place of sale. This notice must be sent by certified mail, return receipt requested, sent to the owner's last known address.
Justification
Motor vehicles are one of the most common types of consumer goods possessed. A creditor may repossess a consumer's vehicle if loan payments become delinquent, even after one missed payment. The New York State Law does not require notification to the consumer on the repossession of a motor vehicle or motorcycle. The law currently requires notification to a station house or police department. The state offers little or no consumer protection under the current law for those in jeopardy of having their vehicle repossessed. with a weakened economy and bleak economic forecasts the consumer may face temporary financial loss due to job relocation, layoffs, and in most cases will need a waiting period to make adjustments. During this waiting period of five to 10 days, the consumer would be allowed an opportunity to payoff the amount of the debt and maintain or reclaim possession of the vehicle. A number of other states are offering consumer protection under their laws for those in default of the terms of the financing conditions of the motor vehicle or motorcycles.
Prior legislative history
STATUS: S.2781 ADAMS Same as Uni. A.4965 Greene
02/12/07 REFERRED TO TRANSPORTATION 01/09/08 REFERRED TO TRANSPORTATION 02/12/07 REFERRED TO TRANSPORTATION 01/09/08 REFERRED TO TRANSPORTATION
Fiscal implications
None.
Effective date
The Act shall take effect on the first of January next succeeding the date of passage.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.