What's happening
This bill allows courts to award reasonable costs and attorney's fees against loan assignees in retail installment contract disputes.
Why it matters
Levels the playing field for consumers. by allowing courts to make loan assignees (such as debt buyers) pay reasonable attorney's fees and costs if they lose disputes over retail installment contracts—helping consumers afford legal representation.
Discourages aggressive or unfair collection practices. by making it riskier and potentially more expensive for assignees to pursue questionable claims, since they could be liable for the other party's legal costs.
Clarifies the scope of assignee liability. so that even though assignees' financial responsibility is capped at the amount owed, this cap does NOT include the possibility of being ordered to pay legal costs and fees—potentially increasing their exposure in litigation.
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Who cares
Headline styles
Limit Loan Assignee Liability
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Substituted by S5152
- Ordered to third reading rules cal.418
- Rules report cal.418
- Reported
- Reported referred to rules
- Reported referred to codes
- 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.
Limit Car Loan Assignee Liability
Signed by Governor · Sponsor Diane J. Savino
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8098
2017-2018 Regular Sessions
IN ASSEMBLY
May 26, 2017
Introduced by M. of A. KAVANAGH, DINOWITZ -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the personal property law, in relation to loan assignees
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 9 of section 302 of the personal property law, as amended by chapter 643 of the laws of 1978, is amended to read as follows:
9. (a) No retail instalment contract shall contain any provision by which the buyer agrees not to assert against an assignee a claim or defense arising out of the sale or require or entail the execution of any note or series of notes, which when separately negotiated will cut off as to third parties any right of action or defense which the buyer may have against the seller. The assignee of a retail installment contract or obligation shall be subject to all claims and defenses of the buyer against the seller arising from the sale notwithstanding any agreement to the contrary, but the assignee's liability under this subdivision shall not exceed the amount owing to the assignee at the time the claim or defense is asserted against the assignee.
(b) Limitations on assignee liability referred to in paragraph (a) of this subdivision shall be exclusive of any reasonable costs and attorney's fees the court may award.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03767-01-7
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.