What's happening
This bill limits credit service charges in motor vehicle retail installment contracts to a maximum of $16 per $100 per year.
Why it matters
Caps the maximum interest rate that car dealers and lenders can charge on financed vehicle purchases, potentially leading to lower overall borrowing costs for consumers who buy cars on installment plans.
Could restrict predatory lending practices in car sales by eliminating the ability for sellers and buyers to agree to higher rates, offering more consumer protection—especially for financially vulnerable buyers with less negotiating power.
May encourage car buyers to finance vehicles, knowing that there is a legal limit to how much they can be charged in credit service fees, which could make vehicle ownership more accessible.
The fixed cap might impact dealerships’ and lenders’ profit margins, potentially changing how they structure financing offers or what types of buyers they approve for loans.
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Who cares
Headline styles
Cap Auto Loan Fees
Plain English, a few words. Used as the page title.
Sponsors
14 Co-sponsors
1 Multi-sponsor
History
- Referred to consumer affairs and protection
- 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.
Cap Car Loan Fees
In Senate Committee · Consumer Protection · Sponsor James Sanders Jr.
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7585
2019-2020 Regular Sessions
IN ASSEMBLY
May 10, 2019
Introduced by M. of A. ZEBROWSKI -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the personal property law, in relation to limiting the amount of certain credit service charges in motor vehicle retail installment contracts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 303 of the personal property law, as amended by chapter 641 of the laws of 1984, is amended to read as follows:
1. A retail seller may contract for in a retail [instalment] installment contract and charge, receive and collect the credit service charge authorized by this article at [the rate or rates agreed to by the retail seller and the buyer] a rate not to exceed sixteen dollars per one hundred dollars per annum.
The credit service charge authorized by this subdivision shall be computed on an amount equal to the total of the difference between the cash sale price of the motor vehicle and the amount of the buyer's down payment and the amount of official fees, and such charge may be made on the amount included in the contract for insurance as determined under subdivision six of section three hundred two of this [chapter] article.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11211-01-9
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.