What's happening
This bill requires motor vehicle lease agreements to clearly disclose the lessee's liability if the car is totaled or becomes inoperable.
Why it matters
Increases transparency for consumers. By requiring lease agreements to clearly spell out the lessee's financial responsibilities if a leased car is totaled or becomes inoperable, the bill helps consumers better understand potential costs and risks before signing.
Protects against unexpected charges. Lessees are often surprised by high fees or remaining payments after a total loss; this bill ensures those liabilities are disclosed up front, helping people avoid financial shock and plan accordingly.
Standardizes industry practices. Mandating the disclosure of lessor rules, policies, and procedures in these situations could reduce confusion and disputes between consumers and leasing companies, potentially leading to fairer treatment and clearer expectations.
Applies to new, renewed, and modified leases. The requirements will affect not just new lease agreements, but also those that are renewed or modified after the law takes effect, broadening its impact and ensuring ongoing consumer protection.
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Who cares
Motor vehicle lessees
The bill would require disclosure of their financial liability and the lessor’s rules, policies and procedures if a leased vehicle is declared a total loss or rendered inoperable during the lease.
Motor vehicle leasing companies
Lessors would need to provide the required disclosures for leases entered into, renewed, modified or amended on or after the bill’s immediate effective date.
Consumer advocates
The bill would give vehicle lessees required information about their financial obligations when a leased vehicle is totaled or becomes inoperable.
Headline styles
Disclose Lease Accident Liability
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.607
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.379
- Substituted for A6748A
- Referred to consumer affairs and protection
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1201
- Committee discharged and committed to rules
- Print number 5859b
Show 4 earlier actions
- Amend and recommit to consumer protection
- Print number 5859a
- Amend and recommit to consumer protection
- 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.
Disclose Lease Loss Liability
Assembly Floor Calendar · Sponsor David Buchwald
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5859--B
2019-2020 Regular Sessions
IN SENATE
May 15, 2019
Introduced by Sen. THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the personal property law, in relation to the disclosure of liability of a motor vehicle lessee in the case of a total loss or the vehicle is rendered inoperable
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 5 of section 337 of the personal property law is amended by adding a new paragraph (l) to read as follows:
(l) The liability of the lessee in the case of a total loss of the vehicle or the vehicle is rendered inoperable. Disclosure of liability pursuant to this paragraph shall include the financial liability of the lessee and the lessor's rules, policies and procedures in the event the car is declared a total loss or rendered inoperable during the term of the lease.
§ 2. This act shall take effect immediately, and shall apply to all leases entered into, renewed, modified or amended on and after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10318-05-9
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 the disclosure of liability of a motor vehicle lessee in the case of a total loss or the vehicle is rendered inoperable
Purpose or general idea of bill
This bill requires clear disclosure of the financial responsibility of a car lessee if the car is subject of a total loss or rendered inoperable, including the lessor's rules, policies, and procedures.
Summary of provisions
Section 1 amends subdivision 5 of section 337 of the Personal Property Law to require a disclosure of the financial responsibility of a car lessee if the car is subject of a total loss or rendered inoperable, including the lessor's rules, policies, and procedures.
Section 2 sets the effective date and specify that the provisions of this section apply only to leases entered into, renewed, modified or amended on or after such effective date.
Difference between original and amended version (if applicable)
Adds language in Section 2 that specifies that the provisions of this section apply only to leases entered into, renewed, modified, or amended on or after such effective date.
Justification
New Yorkers may not be aware that if a car they lease is totaled, then they might not be entitled to any rebate of their down payment. Under current law, there is no requirement of a clear and separate disclosure of the financial obligations of a car lessee if the car suffers a total loss or is rendered inoperable. This bill requires that the full terms and conditions of the lessee's financial responsibilities be provided by a car lessor in the event the car is declared a total loss or rendered inoperable during the term of the lease.
Prior legislative history
This is a new bill.
Fiscal implications for state and local governments
None.
Effective date
Effective immediately, and specifies that the provisions of this section applies only to leases entered into, renewed, modified or amended on or after such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.