Bill > S05600

This bill amends the New York Personal Property Law to limit the credit service charge that can be charged on retail installment contracts. Specifically, the bill caps the credit service charge at the interest rate established in section fourteen-a of the banking law. A retail installment contract is a type of financing agreement where a buyer purchases goods and agrees to pay for them in multiple installments over time, with an additional service charge or interest. Previously, sellers could charge credit service charges at rates agreed to by the buyer, but now there will be a maximum rate determined by banking law. The bill aims to protect consumers by preventing potentially excessive service charges on installment purchases. The amendment applies to any retail installment contract where a seller charges a credit service charge, ensuring that the rate cannot exceed the legally established limit. The bill will take effect immediately upon enactment.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5600