by Alan S. Kaplinsky - The National Law Review
Two bills relevant to consumer finance have been passed by the New York Assembly and Senate and are awaiting Governor Cuomo’s signature.
The first bill, S3704, would amend New York’s plain language requirement to extend its application to consumer contracts involving up to $250,000. The requirement currently does not apply to consumer contracts involving more than $100,000. The law covers residential leases, leases of personal property to be used primarily for personal, family or household purposes or agreements to which a consumer is a party and the money, property or service which is the subject of the transaction is primarily for personal, family or household purposes. Agreements for covered transactions must be written in a clear and coherent manner using words with common and every day meanings and appropriately divided and captioned by its various sections. Violations of the law can result in actual damages plus a $50 penalty, with the total class action penalty limited to $10,000.