S T A T E O F N E W Y O R K
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S. 6742 A. 6869
2023-2024 Regular Sessions
S E N A T E - A S S E M B L Y
May 8, 2023
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IN SENATE -- Introduced by Sen. THOMAS -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Banks
IN ASSEMBLY -- Introduced by M. of A. ZEBROWSKI -- read once and
referred to the Committee on Banks
AN ACT to amend the financial services law, in relation to the jurisdic-
tion of the department of financial services over the financing of
motor vehicles; to amend the vehicle and traffic law, in relation to
the licensing of motor vehicle dealer finance managers and requiring
certain mandatory disclosures by motor vehicle dealers; and to amend
the personal property law, in relation to the right of cancellation
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (B) of paragraph 2 of subsection (a) of
section 104 of the financial services law is amended to read as follows:
(B) "Financial product or service" shall also not include the follow-
ing, when offered or provided by a provider of consumer goods or
services: (i) the extension of credit directly to a consumer exclusive-
ly for the purpose of enabling that consumer to purchase such consumer
good or service directly from the seller, (ii) the collection of debt
arising from such credit, or (iii) the sale or conveyance of such debt
that is delinquent or otherwise in default. PROVIDED, HOWEVER, THAT THE
PROVISIONS OF THIS SUBPARAGRAPH SHALL NOT APPLY TO THE SALE OF MOTOR
VEHICLES. EVERY SALE OF A MOTOR VEHICLE THAT INVOLVES FINANCING, WHETHER
ORIGINATED AT A MOTOR VEHICLE DEALER OR AT A LENDING INSTITUTION, SHALL
BE DEEMED TO BE A "FINANCIAL PRODUCT OR SERVICE" WITHIN THE JURISDICTION
OF THE DEPARTMENT.
§ 2. The opening paragraph of section 205 of the financial services
law is designated subsection (a) and a new subsection (b) is added to
read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02286-01-3
S. 6742 2 A. 6869
(B) THE SUPERINTENDENT MAY, IN HIS OR HER DISCRETION, ESTABLISH A
MOTOR VEHICLE FINANCING BUREAU, AND TO PROMULGATE ANY AND ALL RULES AND
REGULATIONS NECESSARY TO REGULATE MOTOR VEHICLE FINANCING TRANSACTIONS
AND MOTOR VEHICLE DEALER FINANCING DEPARTMENTS.
§ 3. Paragraphs 6 and 7 of subsection (c) of section 301 of the finan-
cial services law are amended and four new paragraphs 8, 9, 10 and 11
are added to read as follows:
(6) providing technical assistance to local governments and not-for-
profits in the development of consumer protection measures with respect
to financial products and services; [and]
(7) continuing and expanding the detection, investigation and
prevention of insurance fraud[.];
(8) PROMULGATING RULES AND REGULATIONS FOR MOTOR VEHICLE DEALER
FINANCE DEPARTMENTS AND FINANCE MANAGERS;
(9) ESTABLISHING EDUCATIONAL MATERIALS AND/OR MANDATED INSTRUCTION FOR
MOTOR VEHICLE DEALER FINANCE MANAGERS APPLYING FOR LICENSING PURSUANT TO
PARAGRAPH D OF SUBDIVISION THREE OF SECTION FOUR HUNDRED FIFTEEN OF THE
VEHICLE AND TRAFFIC LAW. NO SUCH MANDATE INSTRUCTION SHALL EXCEED
SIXTEEN HOURS DURING ANY BIENNIAL LICENSING PERIOD;
(10) IMPOSING A LICENSING AND COURSE FEE FOR MOTOR VEHICLE DEALER
FINANCE MANAGER APPLICANTS PURSUANT TO PARAGRAPH D OF SUBDIVISION THREE
OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW; PROVIDED
THAT SUCH FEE SHALL NOT EXCEED TWO HUNDRED DOLLARS FOR EACH BIENNIAL
LICENSING PERIOD; AND
(11) ESTABLISHING AND IMPOSING PENALTIES, AND LICENSE SUSPENSIONS AND
REVOCATIONS FOR VIOLATIONS BY MOTOR VEHICLE DEALERS AND MOTOR VEHICLE
DEALER FINANCE MANAGERS.
§ 4. Subdivision 3 of section 415 of the vehicle and traffic law is
amended by adding a new paragraph d to read as follows:
D. (I) EVERY DEALER WHICH SELLS MOTOR VEHICLES THAT ARE FINANCED, OR
WHICH FACILITATES IN ANY MANNER THE FINANCING OF THE PURCHASE OF ANY
MOTOR VEHICLE, SHALL ACT AS OR EMPLOY AN INDIVIDUAL TO ACT AS THE
FINANCE MANAGER FOR SUCH DEALER, AND EVERY SUCH MANAGER SHALL BE
LICENSED BY THE DEPARTMENT OF FINANCIAL SERVICES.
(II) EVERY LICENSED FINANCE MANAGER SHALL HAVE COMPLETED SUCH COURSE
OF INSTRUCTION AS SHALL BE ESTABLISHED BY THE DEPARTMENT OF FINANCIAL
SERVICES.
§ 5. The vehicle and traffic law is amended by adding a new section
419-b to read as follows:
§ 419-B. MANDATORY DISCLOSURES BY DEALERS TO PURCHASERS REGARDING
PRICING. 1. EVERY DEALER SHALL CLEARLY AND CONSPICUOUSLY POST:
A. THE TOTAL SALES PRICE, WHICH SHALL INCLUDE ANY ADMINISTRATIVE,
SERVICE OR OTHER FEES CHARGED BY THE DEALER, EXCLUSIVE OF ALL TAXES AND
FEES FOR SECURING A REGISTRATION OR CERTIFICATE OF TITLE, OF EACH MOTOR
VEHICLE OFFERED FOR SALE AT THE PLACE OF BUSINESS, BY MEANS OF A SIGN ON
THE DASHBOARD OF EACH MOTOR VEHICLE OR BY MEANS OF A SIGN AT THE POINT
OF DISPLAY OF EACH MOTOR VEHICLE; AND
B. THE TOTAL SALES PRICE OF ANY ADD-ON PRODUCT OFFERED FOR SALE BY
MEANS OF A SIGN AT THE POINT OF DISPLAY OF EACH MOTOR VEHICLE FOR WHICH
SUCH PRODUCT IS AVAILABLE FOR PURCHASE, OR AT EACH LOCATION WITHIN THE
DEALER'S PLACE OF BUSINESS WHERE ANY SUCH PRODUCT IS OFFERED FOR SALE.
SUCH SIGN SHALL INFORM CONSUMERS THAT THE PURCHASE OF ANY ADD-ON PRODUCT
IS OPTIONAL AND THAT THE PURCHASE OF AN ADD-ON PRODUCT IS NOT REQUIRED
TO OBTAIN FINANCING.
S. 6742 3 A. 6869
IF MULTIPLE ADD-ON PRODUCTS ARE GROUPED TOGETHER ON THE SAME SIGN EACH
ADD-ON PRODUCT MUST BE LISTED SEPARATELY TO THE RIGHT OF THE
DESCRIPTION.
2. NOTHING IN THIS SECTION SHALL PREVENT A DEALER FROM SELLING A MOTOR
VEHICLE OR AN ADD-ON PRODUCT AT A LOWER SALES PRICE THAN THE PRICE POST-
ED PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
3. ANY PERSON WHO VIOLATES SUBDIVISION ONE OF THIS SECTION OR ANY
OTHER APPLICABLE RULE OR REGULATION SHALL BE SUBJECT TO A CIVIL PENALTY
OF NOT MORE THAN THE FOLLOWING:
A. FIVE HUNDRED DOLLARS FOR THE FIRST VIOLATION;
B. SEVEN HUNDRED FIFTY DOLLARS FOR A SECOND VIOLATION COMMITTED WITHIN
ONE YEAR OF THE FIRST VIOLATION; AND
C. ONE THOUSAND DOLLARS FOR A THIRD OR ANY SUBSEQUENT VIOLATION
COMMITTED WITHIN ONE YEAR OF THE FIRST VIOLATION.
4. FOR THE PURPOSES OF ASSESSING A CIVIL PENALTY, ALL VIOLATIONS
COMMITTED BY THE SAME DEALER ON THE SAME DAY SHALL COUNT AS ONE
VIOLATION.
§ 6. The vehicle and traffic law is amended by adding a new section
419-c to read as follows:
§ 419-C. MANDATORY DISCLOSURES BY DEALERS TO CONSUMERS REGARDING
FINANCING. 1. EVERY DEALER SHALL DISCLOSE TO EACH PROSPECTIVE PURCHASER
OF A MOTOR VEHICLE THAT SUCH PURCHASER MAY OBTAIN FINANCING FROM THE
DEALER OR MAY OBTAIN A LOAN FROM A FINANCIAL INSTITUTION.
2. EVERY DEALER SHALL VERIFY THE INCOME AND EMPLOYMENT INFORMATION OF
EACH PROSPECTIVE PURCHASER SEEKING FINANCING FROM THE DEALER. A DEALER
SHALL NOT REPRESENT THAT BENEFITS RECEIVED AS SUPPLEMENTAL SECURITY
INCOME OR SOCIAL SECURITY DISABILITY INCOME SHALL BE A SOLE SUFFICIENT
SOURCE OF INCOME FOR THE PURPOSE OF SECURING CONSUMER MOTOR VEHICLE
FINANCING.
3. EVERY DEALER SHALL DISCLOSE TO EACH PROSPECTIVE PURCHASER ALL
FINANCING OFFERS RECEIVED BY THE DEALER, INCLUDING ANY MARK UP IN THE
COST OF SUCH MOTOR VEHICLE. FOR THE PURPOSE OF THIS SECTION, "MARK UP"
SHALL MEAN THE WHOLESALE ANNUAL PERCENTAGE RATE (APR) OVER WHICH THE
DEALER MAKES A PROFIT WHEN IT NEGOTIATES A RETAIL APR WITH A CREDIT
PURCHASER. NO DEALER MARK UP SHALL EXCEED TWO PERCENT FOR LOANS WITH
TERMS OF SIXTY MONTHS OR LESS OR ONE AND ONE-HALF PERCENT FOR LOANS WITH
A TERM OVER SIXTY MONTHS.
4. DEALERS SHALL DISCLOSE TO EACH PROSPECTIVE PURCHASER WHENEVER A
LOAN HAS AN APR THAT IS HIGHER THAN THE AVERAGE PRIME OFFER RATE.
5. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL CREATE A STANDARD-
IZED FORM FOR FINANCING DISCLOSURES.
6. FAILURE BY A DEALER TO COMPLY WITH THIS SECTION MAY RESULT IN REVO-
CATION OR SUSPENSION OF THE DEALER'S LICENSE.
§ 7. The vehicle and traffic law is amended by adding a new section
419-d to read as follows:
§ 419-D. MANDATORY DISCLOSURES BY DEALERS TO THE DEPARTMENT OF FINAN-
CIAL SERVICES. EVERY DEALER SHALL MAKE ANNUAL DISCLOSURES TO THE DEPART-
MENT OF FINANCIAL SERVICES DISCLOSING HOW MANY MOTOR VEHICLE PURCHASERS
OBTAINED FINANCING FROM THE DEALER AND HOW MANY MOTOR VEHICLE PURCHASERS
OBTAINED A LOAN FROM A FINANCIAL INSTITUTION. FOR EACH LOAN FINANCED BY
THE DEALER, THE DEALER SHALL DISCLOSE TO THE DEPARTMENT OF FINANCIAL
SERVICES THE BORROWER'S CREDIT SCORE, MOTOR VEHICLE MONTHLY PAYMENT,
ESTIMATED INCOME LEVEL, EMPLOYMENT STATUS, MAKE, MODEL, AND VALUE OF THE
MOTOR VEHICLE PURCHASED, LOAN AMOUNT, AND WHETHER THERE WAS A CO-BORROW-
ER.
S. 6742 4 A. 6869
§ 8. Subdivision 3 of section 302 of the personal property law, as
added by chapter 633 of the laws of 1956, is amended to read as follows:
3. The seller shall deliver to the buyer, or mail to him OR HER at his
OR HER address shown on the contract, a copy of the contract signed by
the seller. [Until the seller does so, a] A buyer who has not received
delivery of the motor vehicle shall have an unconditional right to
cancel the contract and to receive immediate refund of all payments made
and redelivery of all goods traded-in to the seller on account of or in
contemplation of the contract WITHIN FORTY-EIGHT HOURS SIGNING THE
CONTRACT OR RECEIVING A COPY OF THE CONTRACT SIGNED BY THE SELLER,
WHICHEVER IS LONGER. Any acknowledgment by the buyer of delivery of a
copy of the contract shall be printed or written in a size equal to at
least ten point bold type and, if contained in the contract, shall also
appear directly above the legend required above the buyer's signature by
PARAGRAPH (A) OF [sub-division] SUBDIVISION two [(a)] of this section.
§ 9. This act shall take effect one year after it shall have become a
law.