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

New York Assembly Bill 2653 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________
                                          2653
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 24, 2019
                                       ___________
        Introduced  by  M.  of A. DINOWITZ, WEPRIN, GOTTFRIED, ARROYO, JOYNER --
          Multi-Sponsored by -- M. of A. HEVESI -- read once and referred to the
          Committee on Judiciary
        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  1  of  the  laws  of
     3  1994, 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  two  hundred  fifty  thousand
    20  dollars  nor  prohibit the use of words or phrases or forms of agreement
    21  required by state or federal law, rule or regulation  or  by  a  govern-
    22  mental instrumentality.
    23    § 2. This act shall take effect on the one hundred eightieth day after
    24  it  shall have become a law and shall apply to any contract entered into
    25  after such effective date.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00635-01-9