Amd §301, Fin Serv L; amd §302, Pers Prop L; add §§417-d & 417-e, V & T L
Authorizes the superintendent of financial services to oversee and regulate car dealer transactions with consumers; requires motor vehicle retail installment contracts to include an itemized listing of all costs related to the purchase of a motor vehicle and disclosure of the prohibition of conditional delivery; requires motor vehicle dealers to provide credit applicants with copies of all credit application documents; prohibits the conditional delivery of a motor vehicle.
STATE OF NEW YORK
________________________________________________________________________
3924
2023-2024 Regular Sessions
IN ASSEMBLY
February 8, 2023
___________
Introduced by M. of A. JACKSON -- read once and referred to the Commit-
tee on Consumer Affairs and Protection
AN ACT to amend the financial services law, in relation to authorizing
the superintendent of financial services to oversee and regulate sales
of motor vehicles to consumers; to amend the personal property law, in
relation to the contents of motor vehicle retail installment
contracts; and to amend the vehicle and traffic law, in relation to
requiring motor vehicle dealers to provide credit applicants with a
copy of all loan application documents, and prohibiting conditional
deliveries of motor vehicles
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 301 of the financial services law is amended by
2 adding a new subsection (d) to read as follows:
3 (d) The superintendent shall have the power to oversee and regulate
4 the financing of both new and used motor vehicles purchased in this
5 state, including the implementation of article nine of the personal
6 property law, and motor vehicle dealer transactions with consumers,
7 including those subject to the provisions of article sixteen of the
8 vehicle and traffic law.
9 § 2. Section 302 of the personal property law is amended by adding two
10 new subdivisions 5-a and 5-b to read as follows:
11 5-a. Every retail installment contract shall include the following
12 statement in twelve point type:
13 "Conditional Deliveries Prohibited: In accordance with Section 417-d
14 of the New York State Vehicle and Traffic Law, when this contract is
15 signed by the dealer and the buyer, and the buyer takes the vehicle off
16 the dealer lot, the buyer is the owner of the vehicle and has the right
17 to keep the vehicle except for reasons of non-payment of this contract.
18 The dealer may not demand that the vehicle be returned for any reason,
19 including alleged denial of any financing. Dealers and lenders may only
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07118-01-3
A. 3924 2
1 demand the vehicle be returned for reasons of non-payment by the buyer.
2 Dealers cannot make an exception to this provision with another contract
3 or document."
4 5-b. Every retail installment contract shall separately itemize each
5 of the following:
6 (a) the price paid for the motor vehicle;
7 (b) the price of each option, add-on and additional charge relating to
8 the sale of the motor vehicle;
9 (c) all fees imposed by a lender upon the dealer or buyer related to
10 financing the purchase of the motor vehicle;
11 (d) the total price of the motor vehicle including all charges imposed
12 pursuant to paragraphs (a), (b) and (c) of this subdivision.
13 § 3. The vehicle and traffic law is amended by adding two new sections
14 417-d and 417-e to read as follows:
15 § 417-d. Credit applications for purchase of motor vehicles. 1. Every
16 dealer which applies for or grants eligibility for the provision of
17 credit for the purchase of a motor vehicle shall review and confirm with
18 the applicant for such credit all information included in the applica-
19 tion therefor. Such review and confirmation shall include specific
20 consideration of each item of information as to its accuracy to the best
21 of the knowledge of the parties. No such application shall be deemed
22 complete nor shall it be submitted unless the dealer and the credit
23 applicant shall have signed their signatures attesting that all informa-
24 tion in the application is accurate and true to the best of their know-
25 ledge.
26 2. The failure of any dealer to comply with the provisions of this
27 section, shall grant any credit applicant, who takes delivery of a motor
28 vehicle purchased on the basis of credit acquired for him or her by such
29 dealer, the option to void the sale of such motor vehicle within thirty
30 days of the delivery of such vehicle. Upon the voiding of any sale
31 pursuant to this subdivision the dealer shall immediately repay to the
32 purchaser all costs incurred by such purchaser as a consequence of the
33 voided sale, including any financing charges and interest, and the fair
34 market private sale value of any motor vehicle traded-in in the course
35 of such sale. Furthermore, in the event a purchaser commences a cause of
36 action to enforce the provisions of this subdivision, a prevailing
37 purchaser shall be entitled to court costs and reasonable attorney's
38 fees.
39 3. The provisions of this section shall not be deemed to limit any
40 other right or remedy of a plaintiff in law or equity.
41 § 417-e. Conditional deliveries; prohibited. 1. No motor vehicle sold
42 by a dealer shall be delivered to the possession of a purchaser subject
43 to any condition to be complied with after delivery of possession of the
44 motor vehicle.
45 2. All terms and conditions of the sale of a motor vehicle shall be
46 fully and clearly disclosed, in writing, to the purchaser prior to the
47 delivery of possession of such vehicle, and shall be signed by both the
48 dealer and the purchaser.
49 3. Every dealer shall provide a copy of the written disclosures
50 required by subdivision two of this section, and shall also maintain a
51 copy thereof for a period of not less than seven years.
52 § 4. This act shall take effect on the first of January next succeed-
53 ing the date on which it shall have become a law.
