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S02484 Summary:

S02484 Actions:

S02484 Committee Votes:

S02484 Floor Votes:

S02484 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2484
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                    January 13, 2017
                                       ___________
 
        Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary
 
        AN ACT to amend the uniform commercial code  and  the  general  business
          law, in relation to prohibiting auto lenders from remotely disabling a
          vehicle without first giving notice of the disabling to the borrower

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subsection (a) of section 9-102 of the  uniform  commercial
     2  code is amended by adding a new paragraph 60-a to read as follows:
     3         (60-a) "Payment assurance device" means any device installed in a
     4                vehicle that can be used to remotely disable the vehicle.
     5    §  2.  Subdivision  10  of section 601 of the general business law, as
     6  added by chapter 342 of the laws of 2011, is renumbered  subdivision  11
     7  and amended and a new subdivision 10 is added to read as follows:
     8    10.    Remotely  disable  a  vehicle  using a payment assurance device
     9  defined in paragraph sixty-a of subsection (a) of section 9-102  of  the
    10  uniform  commercial  code  or by any other means in order to repossess a
    11  debtor's vehicle without first having given written notice of the possi-
    12  ble remote disabling of a vehicle in the  method  and  timetable  agreed
    13  upon  by  the  consumer  and  the  creditor  in the initial contract for
    14  services. The notice shall be mailed by registered or certified mail  to
    15  the address at which the debtor will be residing on the expected date of
    16  the  remote  disabling of the vehicle. The notice shall be postmarked no
    17  later than ten days prior to the date on which the principal creditor or
    18  his agent obtains the right to remotely disable the vehicle; or
    19    11. If such principal creditor or agent sends more than fifty informa-
    20  tion subpoenas per month, fail to keep complete records  concerning  all
    21  information  subpoenas  sent  by  such principal creditor or agent. Such
    22  records shall be maintained  for  five  years.  Contemporaneous  records
    23  shall be kept that set forth with specificity the grounds for such prin-
    24  cipal creditor or agent's reasonable belief, which must be certified and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03764-01-7
        S. 2484                             2
 
     1  accompany  each  information subpoena pursuant to rule fifty-two hundred
     2  twenty-four of the civil practice law and rules, that the party  receiv-
     3  ing the subpoena has in its possession information about the debtor that
     4  will assist the creditor in collecting his or her judgement. In addition
     5  to  any  other  penalty  that  [my]  may be imposed, failure to maintain
     6  records in accordance with this subdivision shall subject such principal
     7  creditor or agent to a civil penalty of not more than fifty dollars  per
     8  subpoena,  up to a maximum of five thousand dollars per violation, in an
     9  action brought by the attorney general[.]; or
    10    § 3. This act shall take effect immediately.