What's happening
This bill expands the Department of Financial Services' authority over motor vehicle financing, requiring dealer finance managers to be licensed and trained.
Why it matters
Brings all motor vehicle financing under the Department of Financial Services (DFS) oversight. , meaning car loans—whether arranged by dealers or other lenders—will now be regulated like other financial products. This could increase consumer protections and standardize industry practices.
Requires that every dealership involved in financing must have a licensed finance manager. , ensuring that individuals handling auto loan arrangements are qualified and held to regulatory standards, which is intended to reduce misleading or predatory sales tactics.
Mandates training and continuing education for dealer finance managers. , with the DFS setting course content and duration (up to 16 hours per two-year license period), aiming to improve professionalism and consumer outcomes during the car-buying process.
Empowers the DFS to set fees, rules, and penalties for finance managers and dealers. , including license suspension or revocation for violations, giving the state stronger tools to address misconduct and enforce compliance in auto financing transactions.
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Who cares
Headline styles
Regulate Car Loan Practices
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
1 Multi-sponsor
History
- Referred to banks
- Referred to banks
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.
Regulate Car Loan Practices
In Senate Committee · Consumer Protection · Sponsor Kevin Thomas
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4928
2019-2020 Regular Sessions
IN ASSEMBLY
February 5, 2019
Introduced by M. of A. BLAKE -- read once and referred to the Committee on Banks
AN ACT to amend the financial services law, in relation to the jurisdiction of the department of financial services over the financing of motor vehicles; and to amend the vehicle and traffic law, in relation to the licensing of motor vehicle dealer finance managers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (B) of paragraph 2 of subsection (a) of section 104 of the financial services law is amended to read as follows:
(B) "Financial product or service" shall also not include the following, when offered or provided by a provider of consumer goods or services: (i) the extension of credit directly to a consumer exclusively for the purpose of enabling that consumer to purchase such consumer good or service directly from the seller, (ii) the collection of debt arising from such credit, or (iii) the sale or conveyance of such debt that is delinquent or otherwise in default. Provided, however, that the provisions of this subparagraph shall not apply to the sale of motor vehicles. Every sale of a motor vehicle that involves financing, whether originated at a motor vehicle dealer or at a lending institution, shall be deemed to be a "financial product or service" within the jurisdiction of the department.
§ 2. The opening paragraph of section 205 of the financial services law is designated subsection (a) and a new subsection (b) is added to read as follows:
(b) The superintendent may, in his or her discretion, establish a motor vehicle financing bureau, and to promulgate any and all rules and regulations necessary to regulate motor vehicle financing transactions and motor vehicle dealer financing departments.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05528-01-9
A. 4928 2
§ 3. Paragraphs 6 and 7 of subsection (c) of section 301 of the financial services law are amended and four new paragraphs 8, 9, 10 and 11 are added to read as follows:
(6) providing technical assistance to local governments and not-forprofits in the development of consumer protection measures with respect to financial products and services; [and]
(7) continuing and expanding the detection, investigation and prevention of insurance fraud[.];
(8) promulgating rules and regulations for motor vehicle dealer finance departments and finance managers;
(9) establishing educational materials and/or mandated instruction for motor vehicle dealer finance managers applying for licensing pursuant to paragraph d of subdivision three of section four hundred fifteen of the vehicle and traffic law. No such mandate instruction shall exceed sixteen hours during any biennial licensing period;
(10) imposing a licensing and course fee for motor vehicle dealer finance manager applicants pursuant to paragraph d of subdivision three of section four hundred fifteen of the vehicle and traffic law; provided that such fee shall not exceed two hundred dollars for each biennial licensing period; and
(11) establishing and imposing penalties, and license suspensions and revocations for violations by motor vehicle dealers and motor vehicle dealer finance managers.
§ 4. Subdivision 3 of section 415 of the vehicle and traffic law is amended by adding a new paragraph d to read as follows:
d. (i) Every dealer which sells motor vehicles that are financed, or which facilitates in any manner the financing of the purchase of any motor vehicle, shall act as or employ an individual to act as the finance manager for such dealer, and every such manager shall be licensed by the department of financial services.
(ii) Every licensed finance manager shall have completed such course of instruction as shall be established by the department of financial services.
§ 5. This act shall take effect on the two hundred seventieth day after it shall have become a law.
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.