What's happening
This bill prohibits retail lease agreements from charging lessees a turn-in fee solely for administrative, handling, or clerical charges.
Why it matters
Protects consumers from hidden end-of-lease costs. By banning turn-in fees that are solely for administrative, handling, or clerical reasons, the bill prevents lessors from adding unexpected charges at the conclusion of a retail lease, making the total cost more predictable for lessees.
Encourages transparency in lease agreements. Retailers and lessors will have to clearly justify any charges at lease-end, which could lead to clearer, more straightforward contracts and reduce fine-print surprises.
Could influence leasing industry practices. The prohibition may prompt retailers and finance companies to revise their fee structures, potentially shifting how they recover administrative costs, and could set a precedent for similar consumer protection laws elsewhere.
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Who cares
Headline styles
Ban Lease Return Fees
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred 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.
Ban Lease Turn-In Fees
Assembly Floor Calendar · Sponsor Steven Englebright
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5921
2019-2020 Regular Sessions
IN SENATE
May 16, 2019
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
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.
LBD05123-01-9
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 prohibiting certain provisions in retail lease agreements
Purpose or general idea of bill
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 expira- tion of the term of the lease, the basis of which is solely for adminis- trative, handling or clerical charges.When a lessee turns in an automo- bile at the end of the lease that has not been damaged nor exceeds the contractual mileage allowed, there is no basis for charging an addi- tional 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 avail- able.
Prior legislative history
1999-00 A.8035 - committed to judiciary 2001-02 A.4159 - referred to judiciary 2003-04 A.1975 - referred to consumer protection 2005-06 A.4642 - ordered to third reading rules cal.203 2007-08 A.1519 - referred to consumer protection 2009-10 A.2904 - referred to consumer protection 2011-12 A.1581 - advanced to third reading cal.386 2013-14 A.466 - advanced to third reading cal.428 2015-16 A.2512 - advanced to third reading cal.578 2017-18: A.2337 - ordered to third reading cal.176
Fiscal implications for state and local governments
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.