Bill Text: NY A02653 | 2019-2020 | General Assembly | Amended

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Bill Title: Increases the monetary exclusion on the requirement of plain language in consumer contracts from $100,000 to $250,000.

Spectrum: Partisan Bill (Democrat 20-0)

Status: (Passed) 2019-10-11 - signed chap.363 [A02653 Detail]

Download: New_York-2019-A02653-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         2653--A
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 24, 2019
                                       ___________
        Introduced  by  M.  of  A.  DINOWITZ, WEPRIN, GOTTFRIED, ARROYO, JOYNER,
          REYES, SAYEGH, GALEF, EPSTEIN, D'URSO -- Multi-Sponsored by --  M.  of
          A. ENGLEBRIGHT, HEVESI, SIMON -- read once and referred to the Commit-
          tee  on  Judiciary  --  committee  discharged,  bill  amended, ordered
          reprinted as amended and recommitted to said committee
        AN ACT to amend the general obligations law, in relation to requirements
          for the use of plain language in consumer transactions
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. The closing paragraph of subdivision a of section 5-702 of
     2  the general obligations law, as amended by chapter 484 of  the  laws  of
     3  2018, is amended to read as follows:
     4    Any  creditor, seller or lessor who fails to comply with this subdivi-
     5  sion shall be liable to a consumer who is a party to a written agreement
     6  governed by this subdivision in an amount equal to  any  actual  damages
     7  sustained plus a penalty of fifty dollars. The total class action penal-
     8  ty  against  any  such  creditor,  seller or lessor shall not exceed ten
     9  thousand dollars in any class action or series of class actions  arising
    10  out  of  the  use  by a creditor, seller or lessor of an agreement which
    11  fails to comply with this subdivision. No action under this  subdivision
    12  may  be brought after both parties to the agreement have fully performed
    13  their obligation under such agreement, nor shall any creditor, seller or
    14  lessor who attempts in good faith to comply  with  this  subdivision  be
    15  liable  for  such  penalties. This subdivision shall not apply to a good
    16  faith attempt to describe the constant yield or other method  of  deter-
    17  mining  the  lease  charge and depreciation portions of each base rental
    18  payment under a lease of personal property. It also shall not  apply  to
    19  agreements  involving amounts in excess of [one] two hundred fifty thou-
    20  sand dollars nor prohibit the use of words or phrases or forms of agree-
    21  ment required by state or federal  law,  rule  or  regulation  or  by  a
    22  governmental instrumentality.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00635-03-9
        A. 2653--A                          2
     1    § 2. This act shall take effect on the one hundred eightieth day after
     2  it  shall have become a law and shall apply to any contract entered into
     3  after such effective date; provided, however, that if chapter 484 of the
     4  laws of 2018 shall not have taken effect on or  before  such  date  then
     5  section  one  of  this act shall take effect on the same date and in the
     6  same manner as such chapter of the laws of 2018 takes effect.