Bill Text: NY S03135 | 2015-2016 | General Assembly | Introduced

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Bill Title: Increases the monetary exclusion on the requirement of plain language in consumer contracts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-01-06 - REFERRED TO JUDICIARY [S03135 Detail]

Download: New_York-2015-S03135-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3135
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   February 2, 2015
                                      ___________
       Introduced  by  Sen. MARTINS -- 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    S 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.
                                                                  LBD01831-01-5