S05483 Summary:
| BILL NO | S05483 |
| SAME AS | No Same As |
| SPONSOR | COMRIE |
| COSPNSR | |
| MLTSPNSR | |
| Amd §§104, 205 & 301, Fin Serv L; add §§419-b, 419-c & 419-d, amd §415, V & T L; amd §302, Pers Prop L | |
| Grants the department of financial services jurisdiction over the financing of motor vehicles; requires motor vehicle dealer finance managers to be licensed by the department of financial services. | |
S05483 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 5483 2025-2026 Regular Sessions IN SENATE February 21, 2025 ___________ Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the financial services law, in relation to the jurisdic- tion of the department of financial services over the financing of motor vehicles; to amend the vehicle and traffic law, in relation to the licensing of motor vehicle dealer finance managers and requiring certain mandatory disclosures by motor vehicle dealers; and to amend the personal property law, in relation to the right of cancellation The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (B) of paragraph 2 of subsection (a) of 2 section 104 of the financial services law is amended to read as follows: 3 (B) "Financial product or service" shall also not include the follow- 4 ing, when offered or provided by a provider of consumer goods or 5 services: (i) the extension of credit directly to a consumer exclusive- 6 ly for the purpose of enabling that consumer to purchase such consumer 7 good or service directly from the seller, (ii) the collection of debt 8 arising from such credit, or (iii) the sale or conveyance of such debt 9 that is delinquent or otherwise in default. Provided, however, that the 10 provisions of this subparagraph shall not apply to the sale of motor 11 vehicles. Every sale of a motor vehicle that involves financing, whether 12 originated at a motor vehicle dealer or at a lending institution, shall 13 be deemed to be a "financial product or service" within the jurisdiction 14 of the department. 15 § 2. The opening paragraph of section 205 of the financial services 16 law is designated subsection (a) and a new subsection (b) is added to 17 read as follows: 18 (b) The superintendent may, in such superintendent's discretion, 19 establish a motor vehicle financing bureau, and to promulgate any and 20 all rules and regulations necessary to regulate motor vehicle financing 21 transactions and motor vehicle dealer financing departments. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09701-01-5S. 5483 2 1 § 3. Paragraphs 6 and 7 of subsection (c) of section 301 of the finan- 2 cial services law are amended and four new paragraphs 8, 9, 10 and 11 3 are added to read as follows: 4 (6) providing technical assistance to local governments and not-for- 5 profits in the development of consumer protection measures with respect 6 to financial products and services; [and] 7 (7) continuing and expanding the detection, investigation and 8 prevention of insurance fraud[.]; 9 (8) promulgating rules and regulations for motor vehicle dealer 10 finance departments and finance managers; 11 (9) establishing educational materials and/or mandated instruction for 12 motor vehicle dealer finance managers applying for licensing pursuant to 13 paragraph d of subdivision three of section four hundred fifteen of the 14 vehicle and traffic law. No such mandate instruction shall exceed 15 sixteen hours during any biennial licensing period; 16 (10) imposing a licensing and course fee for motor vehicle dealer 17 finance manager applicants pursuant to paragraph d of subdivision three 18 of section four hundred fifteen of the vehicle and traffic law; provided 19 that such fee shall not exceed two hundred dollars for each biennial 20 licensing period; and 21 (11) establishing and imposing penalties, and license suspensions and 22 revocations for violations by motor vehicle dealers and motor vehicle 23 dealer finance managers. 24 § 4. Subdivision 3 of section 415 of the vehicle and traffic law is 25 amended by adding a new paragraph d to read as follows: 26 d. (i) Every dealer which sells motor vehicles that are financed, or 27 which facilitates in any manner the financing of the purchase of any 28 motor vehicle, shall act as or employ an individual to act as the 29 finance manager for such dealer, and every such manager shall be 30 licensed by the department of financial services. 31 (ii) Every licensed finance manager shall have completed such course 32 of instruction as shall be established by the department of financial 33 services. 34 § 5. The vehicle and traffic law is amended by adding a new section 35 419-b to read as follows: 36 § 419-b. Mandatory disclosures by dealers to purchasers regarding 37 pricing. 1. Every dealer shall clearly and conspicuously post: 38 a. the total sales price, which shall include any administrative, 39 service or other fees charged by the dealer, exclusive of all taxes and 40 fees for securing a registration or certificate of title, of each motor 41 vehicle offered for sale at the place of business, by means of a sign on 42 the dashboard of each motor vehicle or by means of a sign at the point 43 of display of each motor vehicle; and 44 b. the total sales price of any add-on product offered for sale by 45 means of a sign at the point of display of each motor vehicle for which 46 such product is available for purchase, or at each location within the 47 dealer's place of business where any such product is offered for sale. 48 Such sign shall inform consumers that the purchase of any add-on product 49 is optional and that the purchase of an add-on product is not required 50 to obtain financing. 51 If multiple add-on products are grouped together on the same sign each 52 add-on product must be listed separately to the right of the 53 description. 54 2. Nothing in this section shall prevent a dealer from selling a motor 55 vehicle or an add-on product at a lower sales price than the price post- 56 ed pursuant to subdivision one of this section.S. 5483 3 1 3. Any person who violates subdivision one of this section or any 2 other applicable rule or regulation shall be subject to a civil penalty 3 of not more than the following: 4 a. five hundred dollars for the first violation; 5 b. seven hundred fifty dollars for a second violation committed within 6 one year of the first violation; and 7 c. one thousand dollars for a third or any subsequent violation 8 committed within one year of the first violation. 9 4. For the purposes of assessing a civil penalty, all violations 10 committed by the same dealer on the same day shall count as one 11 violation. 12 § 6. The vehicle and traffic law is amended by adding a new section 13 419-c to read as follows: 14 § 419-c. Mandatory disclosures by dealers to consumers regarding 15 financing. 1. Every dealer shall disclose to each prospective purchaser 16 of a motor vehicle that such purchaser may obtain financing from the 17 dealer or may obtain a loan from a financial institution. 18 2. Every dealer shall verify the income and employment information of 19 each prospective purchaser seeking financing from the dealer. A dealer 20 shall not represent that benefits received as supplemental security 21 income or social security disability income shall be a sole sufficient 22 source of income for the purpose of securing consumer motor vehicle 23 financing. 24 3. Every dealer shall disclose to each prospective purchaser all 25 financing offers received by the dealer, including any mark up in the 26 cost of such motor vehicle. For the purpose of this section, "mark up" 27 shall mean the wholesale annual percentage rate (APR) over which the 28 dealer makes a profit when it negotiates a retail APR with a credit 29 purchaser. No dealer mark up shall exceed two percent for loans with 30 terms of sixty months or less or one and one-half percent for loans with 31 a term over sixty months. 32 4. Dealers shall disclose to each prospective purchaser whenever a 33 loan has an APR that is higher than the average prime offer rate. 34 5. The superintendent of financial services shall create a standard- 35 ized form for financing disclosures. 36 6. Failure by a dealer to comply with this section may result in revo- 37 cation or suspension of the dealer's license. 38 § 7. The vehicle and traffic law is amended by adding a new section 39 419-d to read as follows: 40 § 419-d. Mandatory disclosures by dealers to the department of finan- 41 cial services. Every dealer shall make annual disclosures to the depart- 42 ment of financial services disclosing how many motor vehicle purchasers 43 obtained financing from the dealer and how many motor vehicle purchasers 44 obtained a loan from a financial institution. For each loan financed by 45 the dealer, the dealer shall disclose to the department of financial 46 services the borrower's credit score, motor vehicle monthly payment, 47 estimated income level, employment status, make, model, and value of the 48 motor vehicle purchased, loan amount, and whether there was a co-borrow- 49 er. 50 § 8. Subdivision 3 of section 302 of the personal property law, as 51 added by chapter 633 of the laws of 1956, is amended to read as follows: 52 3. The seller shall deliver to the buyer, or mail to [him] such buyer 53 at [his] the address shown on the contract, a copy of the contract 54 signed by the seller. [Until the seller does so, a] A buyer who has not 55 received delivery of the motor vehicle shall have an unconditional right 56 to cancel the contract and to receive immediate refund of all paymentsS. 5483 4 1 made and redelivery of all goods traded-in to the seller on account of 2 or in contemplation of the contract within forty-eight hours signing the 3 contract or receiving a copy of the contract signed by the seller, 4 whichever is longer. Any acknowledgment by the buyer of delivery of a 5 copy of the contract shall be printed or written in a size equal to at 6 least ten point bold type and, if contained in the contract, shall also 7 appear directly above the legend required above the buyer's signature by 8 [sub-division] paragraph (a) of subdivision two [(a)] of this section. 9 § 9. This act shall take effect one year after it shall have become a 10 law.