What's happening
This bill prohibits retail lease agreements from charging lessees an additional administrative, handling, or clerical turn-in fee at lease end.
Why it matters
Protects consumers from surprise end-of-lease costs. by banning extra administrative, handling, or clerical fees when returning leased goods, making it easier to predict the true cost of leasing.
Closes a common loophole used by lessors. to add hidden fees at the end of leases, potentially saving lessees significant money and preventing deceptive pricing practices.
May improve transparency and competition in the leasing market. , as all mandatory fees must be included upfront, helping consumers compare offers more accurately and make better-informed decisions.
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Who cares
Headline styles
Ban Car Lease End Fees
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to consumer protection
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.588
- 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.
Ban Car Lease Return Fees
Assembly Floor Calendar · Sponsor Steven Englebright
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 2988 A. 2337
2017-2018 Regular Sessions
SENATE - ASSEMBLY
January 18, 2017
IN SENATE -- Introduced by Sens. LAVALLE, GOLDEN, LARKIN -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
IN ASSEMBLY -- Introduced by M. of A. ENGLEBRIGHT, MONTESANO -- read once and referred to the Committee on Judiciary
AN ACT to amend the personal property law, in relation to prohibiting certain provisions in retail lease agreements
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraphs (h) and (i) of subdivision 14 of section 337 of the personal property law, paragraph (h) as added by chapter 1 of the laws of 1994 and paragraph (i) as amended by chapter 111 of the laws of 1995, are amended and a new paragraph (j) is added to read as follows:
(h) the lessee waives any right to a trial by jury in any action or proceeding arising out of the agreement; [or]
(i) a lessee who is not in default of his or her obligations under the agreement would be prohibited from terminating the agreement at any time after the expiration of the first fifty percent of the total number of months of the lease term. The exercise of this right to terminate early voluntarily is contingent upon the lessee discharging fully his or her liability under the early termination provisions of the agreement[.]; or
(j) the lessee would be charged a turn-in fee at the expiration of the term which constitutes solely an additional fee for administrative, handling or clerical charges.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to leases executed on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03365-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the personal property law, in relation to prohibiting certain provisions in retail lease agreements
Purpose
To prevent the imposition of certain fees at the expiration of a term on a motor vehicle lease which constitutes administrative, clerical or handling charges.
Summary of provisions
This bill adds a new section (j) to Section 337(14) of the Personal Property Law dealing with retail auto lease agreements.
Justification
The proposed new section prohibits charging a turn-in fee at the expiration of the term of the lease, the basis of which is solely for administrative, handling or clerical charges.
When a lessee turns in an automobile at the end of the lease that has not been damaged nor exceeds the contractual mileage allowed, there is no basis for charging an additional amount called a turn-in fee for purely administrative costs for the dealer to accept the automobile.
This is a fee very seldom discussed with the lessee at the time the lease is signed. The lesser often offers to waive such a fee as an incentive to the customer to do a subsequent lease. This discourages the consumer from seeking the best rate available.
Legislative history
2015-16 S.488/A.2512; 2013-14 S.3573/A.466; 2011-12 S.1599; 2009-10 S.1396; 2007-08 S.4124; 2005-06 S.2405; 2003-04 S.1032; 2001-02 S.2225
Fiscal implications
None to the State
Effective date
This act shall effect on the first of January next succeeding the date on which it shall have become a law and shall apply to leases executed on and after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.