Bill Text: NY A01125 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires motor vehicle dealers to disclose price markups to the purchasers of motor vehicles; provides failure to so disclose shall be grounds for revocation of the dealer's registration and imposes civil liability to purchasers for damages; authorizes the financial frauds and consumer protection unit of the department of financial services to study problematic practices in the price markups of motor vehicle dealers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to transportation [A01125 Detail]

Download: New_York-2023-A01125-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1125

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 13, 2023
                                       ___________

        Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
          tee on Transportation

        AN  ACT  to  amend the vehicle and traffic law, in relation to requiring
          retail motor vehicle dealers to disclose to purchasers any markups  in
          the cost of a motor vehicle as the result of financing the cost there-
          of;  and to amend the financial services law, in relation to authoriz-
          ing the financial frauds and consumer protection unit to  study  motor
          vehicle dealer price markups

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 415 of the vehicle and traffic law  is  amended  by
     2  adding a new subdivision 3-b to read as follows:
     3    3-b.  Retail  dealer  financing  markup.  a. Every retail dealer shall
     4  disclose to each purchaser of a motor vehicle, at the time of sale,  any
     5  markups  in  the  cost of such motor vehicle related to the entry into a
     6  retail installment contract, loan agreement or other financing agreement
     7  for the vehicle pursuant to article nine of the personal  property  law.
     8  The  failure  of any retail dealer to comply with the provisions of this
     9  paragraph shall be grounds for the department to suspend or  revoke  the
    10  registration issued to such dealer pursuant to this section.
    11    b.  Upon  violation  of the provisions of paragraph a of this subdivi-
    12  sion, an aggrieved purchaser shall be entitled to  compensatory  damages
    13  equal to the financing markup, and reasonable attorney's fees.
    14    §  2. Section 404 of the financial services law is amended by adding a
    15  new subsection (d) to read as follows:
    16    (d)(1) The financial frauds and consumer protection unit is authorized
    17  to conduct a study of the patterns and practices of motor vehicle  price
    18  markups  by  motor  vehicle  dealers  to  identify problematic practices
    19  including, but not limited to, race discrimination, and make recommenda-
    20  tions for the elimination of such problematic practices.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03147-01-3
        A. 1125                             2

     1    (2) The financial frauds and consumer protection unit shall submit the
     2  findings and recommendations of its study, conducted pursuant  to  para-
     3  graph  one  of this subsection, to the governor, the temporary president
     4  of the senate, the speaker of the assembly, and the chairs of the senate
     5  and assembly banks committees.
     6    §  3. This act shall take effect on the first of January next succeed-
     7  ing the date on which it shall have become a law.