Bill > A05741

This bill amends the New York Personal Property Law to impose a cap on the credit service charge that can be computed and collected on a retail instalment contract. Specifically, the bill limits the credit service charge (which is essentially an interest rate charged on an installment purchase) to not exceed the interest rate established in section fourteen-a of the banking law. Under the existing law, sellers were allowed to charge credit service charges at rates agreed to by the buyer, but this new legislation introduces a maximum threshold based on a specific banking law provision. A retail instalment contract is a type of purchase agreement where a buyer agrees to pay for goods in multiple payments over time, and this bill aims to protect consumers by preventing potentially excessive interest charges on such contracts. The amendment ensures that the credit service charge will be calculated from the date of the contract to the date of the final installment payment, but now with a clear upper limit on the rate that can be charged.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A5741