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A07777 Summary:

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A07777 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7777
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 4, 2013
                                       ___________
 
        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee on Judiciary
 
        AN ACT to amend the general obligations law, in relation to requirements
          for the use of plain language in consumer transactions
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 

     1    Section 1. The closing paragraph of subdivision a of section 5-702  of
     2  the  general  obligations  law,  as  amended by chapter 1 of the laws of
     3  1994, is amended to read as follows:
     4    Any creditor, seller or lessor who fails to comply with this  subdivi-
     5  sion shall be liable to a consumer who is a party to a written agreement
     6  governed  by  this  subdivision in an amount equal to any actual damages
     7  sustained plus a penalty of fifty dollars. The total class action penal-
     8  ty against any such creditor, seller or  lessor  shall  not  exceed  ten
     9  thousand  dollars in any class action or series of class actions arising
    10  out of the use by a creditor, seller or lessor  of  an  agreement  which
    11  fails to comply with this subdivision.  No action under this subdivision
    12  may  be brought after both parties to the agreement have fully performed

    13  their obligation under such agreement, nor shall any creditor, seller or
    14  lessor who attempts in good faith to comply  with  this  subdivision  be
    15  liable  for  such  penalties. This subdivision shall not apply to a good
    16  faith attempt to describe the constant yield or other method  of  deter-
    17  mining  the  lease  charge and depreciation portions of each base rental
    18  payment under a lease of personal property. It also shall not  apply  to
    19  agreements  involving  amounts  in  excess of two hundred fifty thousand
    20  dollars nor prohibit the use of words or phrases or forms  of  agreement
    21  required  by  state  or  federal law, rule or regulation or by a govern-
    22  mental instrumentality.
    23    § 2. This act shall take effect on the one hundred eightieth day after
    24  it shall have become a law and shall apply to any contract entered  into
    25  after such effective date.
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10875-02-3