What's happening
This bill prohibits auto lenders in New York from remotely disabling vehicles without providing prior written notice to borrowers.
Why it matters
Protects consumers from surprise vehicle disablement. by requiring lenders to provide written notice before using remote technology to shut off a borrower’s car, giving borrowers a chance to address missed payments or make alternative arrangements.
Raises transparency and fairness in auto lending contracts. , ensuring that if remote disabling is a possibility, the borrower must be informed in advance and the process for notification is clearly defined in the contract, reducing the risk of predatory or abrupt repossession practices.
Mandates a clear timeline and method for notification. , specifying that notice must be sent by registered or certified mail at least ten days before the disabling event, which gives borrowers both documentation and adequate time to respond.
Addresses privacy and due process concerns. , as the law curtails lenders’ ability to unilaterally and instantly disable vehicles without oversight, helping to prevent potential abuses or errors that could leave consumers unexpectedly stranded.
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Who cares
Headline styles
Require Notice Before Car Disabling
Plain English, a few words. Used as the page title.
Sponsors
9 Co-sponsors
History
- Enacting clause stricken
- Referred to consumer affairs and 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.
Notice Before Car Shutdowns
Signed by Governor · Sponsor Martin J. Golden
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5238
2017-2018 Regular Sessions
IN ASSEMBLY
February 7, 2017
Introduced by M. of A. DINOWITZ, COOK, GALEF, ZEBROWSKI, SEPULVEDA, COLTON, ABINANTI, CAHILL, STECK, RIVERA -- Multi-Sponsored by -- M. of A. BARRON, BLAKE, ENGLEBRIGHT, GLICK, HOOPER, MAGEE -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the uniform commercial code and the general business law, in relation to prohibiting auto lenders from remotely disabling a vehicle without first giving notice of the disabling to the borrower
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (a) of section 9-102 of the uniform commercial code is amended by adding a new paragraph 60-a to read as follows:
(60-a) "Payment assurance device" means any device installed in a
vehicle that can be used to remotely disable the vehicle.
§ 2. Subdivision 10 of section 601 of the general business law, as added by chapter 342 of the laws of 2011, is renumbered subdivision 11 and amended and a new subdivision 10 is added to read as follows:
10. Remotely disable a vehicle using a payment assurance device defined in paragraph sixty-a of subsection (a) of section 9-102 of the uniform commercial code or by any other means in order to repossess a debtor's vehicle without first having given written notice of the possible remote disabling of a vehicle in the method and timetable agreed upon by the consumer and the creditor in the initial contract for services. The notice shall be mailed by registered or certified mail to the address at which the debtor will be residing on the expected date of the remote disabling of the vehicle. The notice shall be postmarked no later than ten days prior to the date on which the principal creditor or his agent obtains the right to remotely disable the vehicle; or
11. If such principal creditor or agent sends more than fifty information subpoenas per month, fail to keep complete records concerning all information subpoenas sent by such principal creditor or agent. Such records shall be maintained for five years. Contemporaneous records
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03764-01-7
A. 5238 2
shall be kept that set forth with specificity the grounds for such principal creditor or agent's reasonable belief, which must be certified and accompany each information subpoena pursuant to rule fifty-two hundred twenty-four of the civil practice law and rules, that the party receiving the subpoena has in its possession information about the debtor that will assist the creditor in collecting his or her judgement. In addition to any other penalty that [my] may be imposed, failure to maintain records in accordance with this subdivision shall subject such principal creditor or agent to a civil penalty of not more than fifty dollars per subpoena, up to a maximum of five thousand dollars per violation, in an action brought by the attorney general[.]; or
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.