New York S 5600: Provides for a cap on the credit service charge computed and collected on a retail instalment contract

Bill Text

STATE OF NEW YORK
        ________________________________________________________________________
                                          5600
                               2025-2026 Regular Sessions
                    IN SENATE
                                    February 25, 2025
                                       ___________
        Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
          printed to be committed to the Committee on Consumer Protection
        AN ACT to amend the personal property law, in relation to providing  for
          a  cap on the credit service charge computed and collected on a retail
          instalment contract
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. Subdivision 1 of section 404 of the personal property law,
     2  as amended by chapter 883 of the laws of 1980, is  amended  to  read  as
     3  follows:
     4    1.  A  seller  may,  in  a  retail  instalment contract or obligation,
     5  contract for and, if so contracted for, the holder thereof  may  charge,
     6  receive  and  collect  a credit service charge computed on the principal
     7  balance of the contract or obligation  from  the  date  thereof  to  and
     8  including  the date when the final instalment is payable, at the rate or
     9  rates agreed to by the buyer, but such credit service charge  shall  not
    10  exceed  the  interest rate established pursuant to section fourteen-a of
    11  .the banking law
    12    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in  (underscored) is new; matter in bracketsitalics
                              [] is old law to be omitted. 
                                                                   LBD09567-01-5