Bill > A08423

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 the maximum credit service charge to sixteen dollars per one hundred dollars per year, replacing the previous language that allowed rates to be agreed upon between the retail seller and buyer. The credit service charge will continue to be calculated based on the difference between the vehicle's cash sale price and the buyer's down payment, plus official fees, and can also include charges for insurance. This change aims to provide more consumer protection by establishing a clear cap on the interest rates that can be charged in motor vehicle financing, potentially making auto loans more affordable for buyers by preventing excessively high credit service charges. The amendment will take effect thirty days after it becomes law.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A8423