STATE OF NEW YORK
________________________________________________________________________
5206
2013-2014 Regular Sessions
IN SENATE
May 14, 2013
___________
Introduced by Sen. ZELDIN -- read twice and ordered printed, and when
printed to be committed to the Committee 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
