VALLEY STREAM, NY - Legislation sponsored by Assemblywoman Michaelle C. Solages to prohibit junk fees at the end of a car lease was signed into law by Governor Kathy Hochul. Bill A7167/S4778 prevents the lessor of a motor vehicle from charging a turn-in fee at the expiration of the lease which is solely for administrative, handling, or clerical purposes.

These fees have been used to penalize drivers even when the terms of the lease agreement are upheld. Instead of allowing consumers to find the best rate for a new lease, lessors often leverage these fees to get lessees to stay with them, only offering to waive such fees if they sign on to another lease. This new law protects drivers who lease their vehicles and enhances transparency when signing onto a lease.

Assemblywoman Solages said, “The new law prohibiting unnecessary fees for leased cars is a major step in addressing the affordability crisis faced by hardworking New Yorkers. Vehicle expenses are one of the biggest financial burdens for families, and junk fees have only made it harder to manage those costs. This legislation ensures transparency in leasing practices. It puts more money back into people’s pockets. I want to thank Senator Sanders and Governor Hochul for their commitment to consumer protection.”

Governor Kathy Hochul said, “At a time when New Yorkers are experiencing the devastating effects of rising prices, it’s important that I do everything I can to put more money back in their pockets. With the signing of this legislative bill package, we’re continuing to make progress in making New York more affordable.”

Senator James Sanders, the Senate sponsor of the bill, said, “I am grateful Governor Kathy Hochul recently signed two bills into law of which I was the Chief Sponsor. The first bill (S.8880-A/Sanders Same as A.1010-B/Weprin) promotes and protects the health and safety of consumers by prohibiting label obstruction of over-the-counter drugs or cosmetics. Transparency is key in the marketplace, especially as it relates to health and safety. The second bill (S.4778/Sanders Same as A.7167/Solages) prohibits charging a turn-in fee at the expiration of the term of a vehicle lease, the basis of which is solely for administrative, handling or clerical charges. Both of these new laws are commonsense protections for the consumer.”

Governor Hochul signed this bill as part of a package of consumer protection legislation. The governor’s full press release on these new laws can be found here. Assemblywoman Solages will continue to work to lower costs for New York families and make our economy fairer for all.