Bill > S05213

This bill amends the New York Personal Property Law to limit the credit service charges that can be applied to motor vehicle retail installment contracts. Specifically, the bill restricts retailers from charging credit service charges at any previously agreed-upon rate, and instead caps the rate at sixteen dollars per one hundred dollars per year (equivalent to a 16% annual interest rate). The credit service charge can be calculated based on the difference between the cash sale price of the vehicle and the buyer's down payment, plus official fees, and can also include charges for insurance as defined in a related section of the law. This change aims to protect consumers by placing a clear ceiling on the credit service charges that can be levied in motor vehicle installment contracts, potentially reducing the overall cost of financing a vehicle purchase. The bill will take effect 30 days after becoming law, providing dealers and consumers with a clear transition period to understand and implement the new rate limitation.