senate Bill S5206

2013-2014 Legislative Session

Increases the monetary exclusion on the requirement of plain language in consumer contracts

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee

  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to judiciary
May 14, 2013 referred to judiciary

S5206 - Details

See Assembly Version of this Bill:
Current Committee:
Law Section:
General Obligations Law
Laws Affected:
Amd ยง5-702, Gen Ob L

S5206 - Summary

Increases the monetary exclusion on the requirement of plain language in consumer contracts.

S5206 - Sponsor Memo

S5206 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K


                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 14, 2013

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed 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


  Section  1. The closing paragraph of subdivision a of section 5-702 of
the general obligations law, as amended by chapter  1  of  the  laws  of
1994, is amended to read as follows:
  Any  creditor, seller or lessor who fails to comply with this subdivi-
sion shall be liable to a consumer who is a party to a written agreement
governed by this subdivision in an amount equal to  any  actual  damages
sustained plus a penalty of fifty dollars. The total class action penal-
ty  against  any  such  creditor,  seller or lessor shall not exceed ten
thousand dollars in any class action or series of class actions  arising
out  of  the  use  by a creditor, seller or lessor of an agreement which
fails to comply with this subdivision.  No action under this subdivision
may be brought after both parties to the agreement have fully  performed
their obligation under such agreement, nor shall any creditor, seller or
lessor  who  attempts  in  good faith to comply with this subdivision be
liable for such penalties. This subdivision shall not apply  to  a  good
faith  attempt  to describe the constant yield or other method of deter-
mining the lease charge and depreciation portions of  each  base  rental
payment  under  a lease of personal property. It also shall not apply to
agreements involving amounts in excess of  TWO  HUNDRED  fifty  thousand
dollars  nor  prohibit the use of words or phrases or forms of agreement
required by state or federal law, rule or regulation  or  by  a  govern-
mental instrumentality.
  S 2. This act shall take effect on the one hundred eightieth day after
it  shall have become a law and shall apply to any contract entered into
after such effective date.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.


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