Senate Bill S5269C

2015-2016 Legislative Session

Prohibits auto lenders from remotely disabling a vehicle without first giving notice of the disabling to the debtor

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 18, 2016	print number 5269c
May 18, 2016	amend and recommit to judiciary
Jan 06, 2016	referred to judiciary
Jun 01, 2015	print number 5269b
Jun 01, 2015	amend and recommit to judiciary
May 26, 2015	print number 5269a
May 26, 2015	amend (t) and recommit to judiciary
May 12, 2015	referred to judiciary

Bill Amendments

Original

C (Active)

2015-S5269 - Details

See Assembly Version of this Bill:: A8010
Current Committee:: Senate Judiciary
Law Section:: Uniform Commercial Code
Laws Affected:: Amd §9-102, UCC; amd §601, Gen Bus L
Versions Introduced in 2017-2018 Legislative Session:: S2484, A5238, A7855, A10160

2015-S5269 - Summary

Prohibits auto lenders from remotely disabling a vehicle without first giving notice of the disabling to the debtor.

2015-S5269 - Sponsor Memo

                                BILL NUMBER:S5269

TITLE OF BILL:  An act to amend the uniform commercial code and the
general business law, in relation to prohibiting auto lenders from
remotely disabling a vehicle without first giving notice of the disabl-
ing to the lender

PURPOSE:

The bill prohibits auto lenders from remotely disabling a vehicle with-
out first giving notice of the lender's ability to disable the vehicle
ten days in advance of obtaining that right.

SUMMARY OF PROVISIONS:

Section one of this bill amends Section 9-102(a) of the Uniform Commer-
cial Code by adding new paragraph 60-a defining a "payment assurance
device" as any device installed in a vehicle that can remotely disable
that vehicle.

Section two of this bill amends Section 601 of the General Business Law
by renumbering subdivision 10 as subdivision 11 and adding a new subdi-
vision 10. This new subdivision prohibits auto lenders from remotely
disabling vehicles without having first provided a registered or certi-
fied mail notice to the borrower. This notice is to be postmarked no
fewer than ten days prior to the date on which the lender obtains the

right to remotely disable the vehicle for delinquent payments.

Section three of this bill amends Section 601 of the General Business
Law by adding new subdivision 12 which provides that the lender must
make the borrower aware of the time at which the lender obtains the
right to disable the borrower's vehicle before any contracts are signed
between the two groups.

Section four of this bill states that this act shall take effect imme-
diately.

JUSTIFICATION:

Auto lenders are currently allowed to install devices in cars that serve
both as GPS tracking devices as well as remote ignition disablers. This
allows these lenders to track their cars and, if the borrower is delin-
quent on payments, remotely disable the car. This presents a serious
safety issue for those who borrow these cars.

The purpose of these devices is to make the repossession process more
efficacious by tracking the vehicles location. However, the added step
of remotely disabling a vehicle is unnecessary since these lenders can
already track the cars. This disabling device is important to have in
vehicles for theft situations, but should be used for lending purposes
only after the lender has made significant efforts to make the borrower
aware

We have seen instances where these devices have led to severe safety
risks. In 2014, a woman in Las Vegas needed to drive her ten year old
son to the emergency room because he had an asthma attack and a 103.5
degree fever, but was not able to because her lender disabled her car in
the driveway over a $389 delinquent charge.

These lenders assure drivers that these devices will not be used while
the vehicle is in motion, but there have been cases where vehicles have
been disabled even on busy interstates. In 2012, a woman almost crashed
because her car was remotely deactivated on a three-lane highway.

Sometimes, individuals have had their vehicles disabled in dangerous
neighborhoods, and there is the possibility that individuals could have
their vehicles disabled while on vacations or long trips, leaving them
stranded far away from their homes, families and jobs.

This bill would provide that lenders give borrowers an additional writ-
ten notice before they acquire the right to remotely disable a vehicle.
This will be a minor requirement that would prevent these potential
risks to borrowers' safety.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This bill shall take effect immediately.

2015-S5269 - Bill Text download pdf

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

                                  5269

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 12, 2015
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the uniform commercial code  and  the  general  business
  law, in relation to prohibiting auto lenders from remotely disabling a
  vehicle without first giving notice of the disabling to the lender

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision (a) of section 9-102 of the uniform  commercial
code is amended by adding a new paragraph 60-a to read as follows:
  (60-A)  "PAYMENT  ASSURANCE  DEVICE"  MEANS  ANY DEVICE INSTALLED IN A
VEHICLE THAT CAN BE USED TO REMOTELY DISABLE THE VEHICLE.
  S 2. Subdivision 10 of section 601 of the  general  business  law,  as
added  by  chapter 342 of the laws of 2011, is renumbered subdivision 11
and amended and a new subdivision 10 is added to read as follows:
  10.   REMOTELY DISABLE A VEHICLE  USING  A  PAYMENT  ASSURANCE  DEVICE
DEFINED  IN  PARAGRAPH  SIXTY-A OF SUBDIVISION A OF SECTION 9-102 OF THE
UNIFORM COMMERCIAL CODE OR BY ANY OTHER MEANS IN ORDER  TO  REPOSSESS  A
DEBTOR'S VEHICLE WITHOUT FIRST HAVING GIVEN WRITTEN NOTICE OF THE POSSI-
BLE  REMOTE DISABLING OF A VEHICLE. THE NOTICE SHALL BE MAILED BY REGIS-
TERED OR CERTIFIED MAIL TO THE ADDRESS  AT  WHICH  THE  DEBTOR  WILL  BE
RESIDING  ON  THE  EXPECTED DATE OF THE REMOTE DISABLING OF THE VEHICLE.
THE NOTICE SHALL BE POSTMARKED NO LATER THAN TEN DAYS PRIOR TO THE  DATE
ON  WHICH  THE  PRINCIPAL  CREDITOR  OR  HIS  AGENT OBTAINS THE RIGHT TO
REMOTELY DISABLE THE VEHICLE; OR
  11. If such principal creditor or agent sends more than fifty informa-
tion subpoenas per month, fail to keep complete records  concerning  all
information  subpoenas  sent  by  such principal creditor or agent. Such
records shall be maintained  for  five  years.  Contemporaneous  records
shall be kept that set forth with specificity the grounds for such prin-
cipal creditor or agent's reasonable belief, which must be certified and
accompany  each  information subpoena pursuant to rule fifty-two hundred

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11024-01-5

S. 5269                             2

twenty-four of the civil practice law and rules, that the party  receiv-
ing the subpoena has in its possession information about the debtor that
will assist the creditor in collecting his or her judgement. In addition
to  any  other  penalty  that  [my]  MAY be imposed, failure to maintain
records in accordance with this subdivision shall subject such principal
creditor or agent to a civil penalty of not more than fifty dollars  per
subpoena,  up to a maximum of five thousand dollars per violation, in an
action brought by the attorney general[.]; OR
  S 3. Section 601 of the general business law is amended  by  adding  a
new subdivision 12 to read as follows:
  12.  THE  DATE  ON  WHICH  THE PRINCIPAL CREDITOR OBTAINS THE RIGHT TO
UTILIZE A PAYMENT ASSURANCE DEVICE IN ORDER TO REMOTELY DISABLE A  VEHI-
CLE  MUST  BE  MADE  AWARE  TO  THE BORROWER BEFORE A CONTRACT IS SIGNED
BETWEEN THE PRINCIPAL CREDITOR AND THE BORROWER.
  S 4. This act shall take effect immediately.

2015-S5269A - Details

See Assembly Version of this Bill:: A8010
Current Committee:: Senate Judiciary
Law Section:: Uniform Commercial Code
Laws Affected:: Amd §9-102, UCC; amd §601, Gen Bus L
Versions Introduced in 2017-2018 Legislative Session:: S2484, A5238, A7855, A10160

2015-S5269A - Summary

Prohibits auto lenders from remotely disabling a vehicle without first giving notice of the disabling to the debtor.

2015-S5269A - Sponsor Memo

                                BILL NUMBER:S5269A

TITLE OF BILL:  An act to amend the uniform commercial code and the
general business law, in relation to prohibiting auto lenders from
remotely disabling a vehicle without first giving notice of the
disabling to the borrower

PURPOSE:  The bill prohibits auto lenders from remotely disabling a
vehicle without first giving notice of the lender's ability to disable
the vehicle ten days in advance of obtaining that right.

SUMMARY OF PROVISIONS:

Section one of this bill amends Section 9-102(a) of the Uniform
Commercial Code by adding new paragraph 60-a defining a "payment
assurance device" as any device installed in a vehicle that can
remotely disable that vehicle.

Section two of this bill amends Section 601 of the General Business
Law by renumbering subdivision 10 as subdivision 11 and adding a new
subdivision 10. This new subdivision prohibits auto lenders from
remotely disabling vehicles without having first provided a registered
or certified mail notice to the debtor. This notice is to be
postmarked no fewer than ten days prior to the date on which the
lender obtains the right to remotely disable the vehicle.

Section three of this bill amends Section 601 of the General Business
Law by adding new subdivision 12 which provides that the lender must
make the debtor aware of the time at which the lender obtains the
right to disable the debtor's vehicle before any contracts are signed
between the two groups.

Section four of this bill states that this act shall take effect
immediately.

JUSTIFICATION:  Auto lenders are currently allowed to install devices
in cars that serve both as GPS tracking devices as well as remote
ignition disablers. This allows these lenders to track their cars and,
if the borrower is delinquent on payments, remotely disable the car.
This presents a serious safety issue for those who borrow these cars.

The purpose of these devices is to make the repossession process more
efficacious by tracking the vehicles location. However, the added step
of remotely disabling a vehicle is unnecessary since these lenders can
already track the cars. This disabling device is important to have in
vehicles for theft situations, but should be used for lending purposes
only after the lender has made significant efforts to make the
borrower aware.

We have seen instances where these devices have led to severe safety
risks. In 2014, a woman in Las Vegas needed to drive her ten year old
son to the emergency room because he had an asthma attack and a 103.5
degree fever, but was not able to because her lender disabled her car
in the driveway over a $389 delinquent charge.

These lenders assure drivers that these devices will not be used while
the vehicle is in motion, but there have been cases where vehicles


have been disabled even on busy interstates. In 2012, a woman almost
crashed because her car was remotely deactivated on a three-lane
highway.

Sometimes, individuals have had their vehicles disabled in dangerous
neighborhoods, and there is the possibility that individuals could
have their vehicles disabled while on vacations or long trips, leaving
them stranded far away from their homes, families and jobs.

This bill would provide that lenders give borrowers an additional
written notice before they acquire the right to remotely disable a
vehicle. This will be a minor requirement that would prevent these
potential risks to borrowers' safety.

LEGISLATIVE HISTORY:  This is a new bill.

FISCAL IMPLICATIONS:  None.

EFFECTIVE DATE:  This bill shall take effect immediately.

2015-S5269A - Bill Text download pdf

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

                                 5269--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 12, 2015
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Judiciary  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the uniform commercial code and the general business
  law, in relation to prohibiting auto lenders from remotely disabling a
  vehicle without first giving notice of the disabling to the borrower

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Subdivision (a) of section 9-102 of the uniform commercial
code is amended by adding a new paragraph 60-a to read as follows:
  (60-A) "PAYMENT ASSURANCE DEVICE" MEANS  ANY  DEVICE  INSTALLED  IN  A
VEHICLE THAT CAN BE USED TO REMOTELY DISABLE THE VEHICLE.
  S  2.  Subdivision  10  of section 601 of the general business law, as
added by chapter 342 of the laws of 2011, is renumbered  subdivision  11
and amended and a new subdivision 10 is added to read as follows:
  10.    REMOTELY  DISABLE  A  VEHICLE  USING A PAYMENT ASSURANCE DEVICE
DEFINED IN PARAGRAPH SIXTY-A OF SUBDIVISION (A) OF SECTION 9-102 OF  THE
UNIFORM  COMMERCIAL  CODE  OR BY ANY OTHER MEANS IN ORDER TO REPOSSESS A
DEBTOR'S VEHICLE WITHOUT FIRST HAVING GIVEN WRITTEN NOTICE OF THE POSSI-
BLE REMOTE DISABLING OF A VEHICLE. THE NOTICE SHALL BE MAILED BY  REGIS-
TERED  OR  CERTIFIED  MAIL  TO  THE  ADDRESS AT WHICH THE DEBTOR WILL BE
RESIDING ON THE EXPECTED DATE OF THE REMOTE DISABLING  OF  THE  VEHICLE.
THE  NOTICE SHALL BE POSTMARKED NO LATER THAN TEN DAYS PRIOR TO THE DATE
ON WHICH THE PRINCIPAL CREDITOR  OR  HIS  AGENT  OBTAINS  THE  RIGHT  TO
REMOTELY DISABLE THE VEHICLE; OR
  11. If such principal creditor or agent sends more than fifty informa-
tion  subpoenas  per month, fail to keep complete records concerning all
information subpoenas sent by such principal  creditor  or  agent.  Such
records  shall  be  maintained  for  five years. Contemporaneous records
shall be kept that set forth with specificity the grounds for such prin-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11024-02-5

S. 5269--A                          2

cipal creditor or agent's reasonable belief, which must be certified and
accompany each information subpoena pursuant to rule  fifty-two  hundred
twenty-four  of the civil practice law and rules, that the party receiv-
ing the subpoena has in its possession information about the debtor that
will assist the creditor in collecting his or her judgement. In addition
to  any  other  penalty  that  [my]  MAY be imposed, failure to maintain
records in accordance with this subdivision shall subject such principal
creditor or agent to a civil penalty of not more than fifty dollars  per
subpoena,  up to a maximum of five thousand dollars per violation, in an
action brought by the attorney general[.]; OR
  S 3. Section 601 of the general business law is amended  by  adding  a
new subdivision 12 to read as follows:
  12.  THE  DATE  ON  WHICH  THE PRINCIPAL CREDITOR OBTAINS THE RIGHT TO
UTILIZE A PAYMENT ASSURANCE DEVICE IN ORDER TO REMOTELY DISABLE A  VEHI-
CLE MUST BE MADE CLEAR TO THE DEBTOR BEFORE A CONTRACT IS SIGNED BETWEEN
THE PRINCIPAL CREDITOR AND THE DEBTOR.
  S 4. This act shall take effect immediately.

2015-S5269B - Details

See Assembly Version of this Bill:: A8010
Current Committee:: Senate Judiciary
Law Section:: Uniform Commercial Code
Laws Affected:: Amd §9-102, UCC; amd §601, Gen Bus L
Versions Introduced in 2017-2018 Legislative Session:: S2484, A5238, A7855, A10160

2015-S5269B - Summary

Prohibits auto lenders from remotely disabling a vehicle without first giving notice of the disabling to the debtor.

2015-S5269B - Sponsor Memo

                                BILL NUMBER:S5269B

TITLE OF BILL:  An act to amend the uniform commercial code and the
general business law, in relation to prohibiting auto lenders from
remotely disabling a vehicle without first giving notice of the
disabling to the borrower

PURPOSE:  The bill prohibits auto lenders from remotely disabling a
vehicle without first giving notice of the lender's ability to disable
the vehicle ten days in advance of obtaining that right.

SUMMARY OF PROVISIONS:

Section one of this bill amends Section 9-102(a) of the Uniform
Commercial Code by adding new paragraph 60-a defining a "payment
assurance device" as any device installed in a vehicle that can
remotely disable that vehicle

Section two of this bill amends Section 601 of the General Business
Law by renumbering subdivision 10 as subdivision 11 and adding a new
subdivision 10. This new subdivision prohibits auto lenders from
remotely disabling vehicles without having first provided a registered
or certified mail notice to the debtor. This notice is to be
postmarked no fewer than ten days prior to the date on which the
lender obtains the right to remotely disable the vehicle.

Section three of this bill amends Section 601 of the General Business
Law by adding new subdivision 12 which provides that the lender must
make the debtor aware of the time at which the lender obtains the
right to disable the debtor's vehicle before any contracts are signed
between the two groups.

Section four of this bill states that this act shall take effect
immediately.

JUSTIFICATION:  Auto lenders are currently allowed to install devices
in cars that serve both as GPS tracking devices as well as remote
ignition disablers. This allows these lenders to track their cars and,
if the borrower is delinquent on payments, remotely disable the car.
This presents a serious safety issue for those who borrow these cars.

The purpose of these devices is to make the repossession process more
efficacious by tracking the vehicles location. However, the added step
of remotely disabling a vehicle is unnecessary since these lenders can
already track the cars. This disabling device is important to have in
vehicles for theft situations, but should be used for lending purposes
only after the lender has made significant efforts to make the
borrower aware.

We have seen instances where these devices have led to severe safety
risks. In 2014, a woman in Las Vegas needed to drive her ten year old
son to the emergency room because he had an asthma attack and a 103.5
degree fever, but was not able to because her lender disabled her car
in the driveway over a $389 delinquent charge.

These lenders assure drivers that these devices will not be used while
the vehicle is in motion, but there have been cases where vehicles


have been disabled even on busy interstates. In 2012, a woman almost
crashed because her car was remotely deactivated on a three-lane
highway.

Sometimes, individuals have had their vehicles disabled in dangerous
neighborhoods, and there is the possibility that individuals could
have their vehicles disabled while on vacations or long trips, leaving
them stranded far away from their homes, families and jobs.

This bill would provide that lenders give borrowers an additional
written notice before they acquire the right to remotely disable a
vehicle. This will be a minor requirement that would prevent these
potential risks to borrowers' safety.

LEGISLATIVE HISTORY:  This is a new bill.

FISCAL IMPLICATIONS:  None.

EFFECTIVE DATE:  This bill shall take effect immediately.

2015-S5269B - Bill Text download pdf

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

                                 5269--B

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 12, 2015
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Judiciary  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee  --  committee  discharged,  bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the uniform commercial code  and  the  general  business
  law, in relation to prohibiting auto lenders from remotely disabling a
  vehicle without first giving notice of the disabling to the borrower

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (a) of section 9-102 of the  uniform  commercial
code is amended by adding a new paragraph 60-a to read as follows:
       (60-A) "PAYMENT ASSURANCE DEVICE" MEANS ANY DEVICE INSTALLED IN A
              VEHICLE THAT CAN BE USED TO REMOTELY DISABLE THE VEHICLE.
  S  2.  Subdivision  10  of section 601 of the general business law, as
added by chapter 342 of the laws of 2011, is renumbered  subdivision  11
and amended and a new subdivision 10 is added to read as follows:
  10.    REMOTELY  DISABLE  A  VEHICLE  USING A PAYMENT ASSURANCE DEVICE
DEFINED IN PARAGRAPH SIXTY-A OF SUBSECTION (A) OF SECTION 9-102  OF  THE
UNIFORM  COMMERCIAL  CODE  OR BY ANY OTHER MEANS IN ORDER TO REPOSSESS A
DEBTOR'S VEHICLE WITHOUT FIRST HAVING GIVEN WRITTEN NOTICE OF THE POSSI-
BLE REMOTE DISABLING OF A VEHICLE. THE NOTICE SHALL BE MAILED BY  REGIS-
TERED  OR  CERTIFIED  MAIL  TO  THE  ADDRESS AT WHICH THE DEBTOR WILL BE
RESIDING ON THE EXPECTED DATE OF THE REMOTE DISABLING  OF  THE  VEHICLE.
THE  NOTICE SHALL BE POSTMARKED NO LATER THAN TEN DAYS PRIOR TO THE DATE
ON WHICH THE PRINCIPAL CREDITOR  OR  HIS  AGENT  OBTAINS  THE  RIGHT  TO
REMOTELY DISABLE THE VEHICLE; OR
  11. If such principal creditor or agent sends more than fifty informa-
tion  subpoenas  per month, fail to keep complete records concerning all
information subpoenas sent by such principal  creditor  or  agent.  Such
records  shall  be  maintained  for  five years. Contemporaneous records

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11024-04-5

S. 5269--B                          2

shall be kept that set forth with specificity the grounds for such prin-
cipal creditor or agent's reasonable belief, which must be certified and
accompany each information subpoena pursuant to rule  fifty-two  hundred
twenty-four  of the civil practice law and rules, that the party receiv-
ing the subpoena has in its possession information about the debtor that
will assist the creditor in collecting his or her judgement. In addition
to any other penalty that [my]  MAY  be  imposed,  failure  to  maintain
records in accordance with this subdivision shall subject such principal
creditor  or agent to a civil penalty of not more than fifty dollars per
subpoena, up to a maximum of five thousand dollars per violation, in  an
action brought by the attorney general[.]; OR
  S  3.  Section  601 of the general business law is amended by adding a
new subdivision 12 to read as follows:
  12. THE DATE ON WHICH THE PRINCIPAL  CREDITOR  OBTAINS  THE  RIGHT  TO
UTILIZE  A PAYMENT ASSURANCE DEVICE IN ORDER TO REMOTELY DISABLE A VEHI-
CLE MUST BE MADE CLEAR TO THE DEBTOR BEFORE A CONTRACT IS SIGNED BETWEEN
THE PRINCIPAL CREDITOR AND THE DEBTOR.
  S 4. This act shall take effect immediately.

2015-S5269C (ACTIVE) - Details

See Assembly Version of this Bill:: A8010
Current Committee:: Senate Judiciary
Law Section:: Uniform Commercial Code
Laws Affected:: Amd §9-102, UCC; amd §601, Gen Bus L
Versions Introduced in 2017-2018 Legislative Session:: S2484, A5238, A7855, A10160

2015-S5269C (ACTIVE) - Summary

Prohibits auto lenders from remotely disabling a vehicle without first giving notice of the disabling to the debtor.

2015-S5269C (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5269C

 TITLE OF BILL :  An act to amend the uniform commercial code and the
general business law, in relation to prohibiting auto lenders from
remotely disabling a vehicle without first giving notice of the
disabling to the borrower

 PURPOSE :

The bill prohibits auto lenders from remotely disabling a vehicle
without first giving notice of the lender's ability to disable the
vehicle ten days in advance of obtaining that right.

 SUMMARY OF PROVISIONS :

Section one of this bill amends Section 9-102(a) of the Uniform
Commercial Code by adding new paragraph 60-a defining a "payment
assurance device" as any device installed in a vehicle that can
remotely disable that vehicle.

Section two of this bill amends Section 601 of the General Business
Law by renumbering subdivision 10 as subdivision 11 and adding a new
subdivision 10. This new subdivision prohibits auto lenders from
remotely disabling vehicles without having first provided notice to
the debtor in accordance with the method required by the contract
between the debtor and the lender. This notice is to be postmarked no

fewer than ten days prior to the date on which the lender obtains the
right to remotely disable the vehicle.

Section three of this bill states that this act shall take effect
immediately.

 JUSTIFICATION :

Auto lenders are currently allowed to install devices in cars that
serve both as GPS tracking devices as well as remote ignition
disablers. This allows these lenders to track their cars and, if the
borrower is delinquent on payments, remotely disable the car. This
presents a serious safety issue for those who borrow these cars.

The purpose of these devices is to make the repossession process more
efficacious by tracking the vehicles location. However, the added step
of remotely disabling a vehicle is unnecessary since these lenders can
already track the cars. This disabling device is important to have in
vehicles for theft situations, but should be used for lending purposes
only after the lender has made significant efforts to make the
borrower aware.

We have seen instances where these devices have led to severe safety
risks. In 2014, a woman in Las Vegas needed to drive her ten year old
son to the emergency room because he had an asthma attack and a 103.5
degree fever, but was not able to because her lender disabled her car
in the driveway over a $389 delinquent charge.

These lenders assure drivers that these devices will not be used while
the vehicle is in motion, but there have been cases where vehicles
have been disabled even on busy interstates. In 2012, a woman almost
crashed because her car was remotely deactivated on a three-lane
highway.

Sometimes, individuals have had their vehicles disabled in dangerous
neighborhoods, and there is the possibility that individuals could
have their vehicles disabled while on vacations or long trips, leaving
them stranded far away from their homes, families and jobs.


This bill would provide that lenders give borrowers an additional
written notice before they acquire the right to remotely disable a
vehicle. This will be a minor requirement that would prevent these
potential risks to borrowers' safety.

 LEGISLATIVE HISTORY :

2015: S.5269 - Referred to Judiciary

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S5269C (ACTIVE) - Bill Text download pdf

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

                                 5269--C

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 12, 2015
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Judiciary  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee  --  committee  discharged,  bill amended, ordered
  reprinted as amended and recommitted to said committee --  recommitted
  to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the uniform commercial code  and  the  general  business
  law, in relation to prohibiting auto lenders from remotely disabling a
  vehicle without first giving notice of the disabling to the borrower

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (a) of section 9-102 of the  uniform  commercial
code is amended by adding a new paragraph 60-a to read as follows:
       (60-A) "PAYMENT ASSURANCE DEVICE" MEANS ANY DEVICE INSTALLED IN A
              VEHICLE THAT CAN BE USED TO REMOTELY DISABLE THE VEHICLE.
  S  2.  Subdivision  10  of section 601 of the general business law, as
added by chapter 342 of the laws of 2011, is renumbered  subdivision  11
and amended and a new subdivision 10 is added to read as follows:
  10.    REMOTELY  DISABLE  A  VEHICLE  USING A PAYMENT ASSURANCE DEVICE
DEFINED IN PARAGRAPH SIXTY-A OF SUBSECTION (A) OF SECTION 9-102  OF  THE
UNIFORM  COMMERCIAL  CODE  OR BY ANY OTHER MEANS IN ORDER TO REPOSSESS A
DEBTOR'S VEHICLE WITHOUT FIRST HAVING GIVEN WRITTEN NOTICE OF THE POSSI-
BLE REMOTE DISABLING OF A VEHICLE IN THE  METHOD  AND  TIMETABLE  AGREED
UPON  BY  THE  CONSUMER  AND  THE  CREDITOR  IN THE INITIAL CONTRACT FOR
SERVICES. THE NOTICE SHALL BE MAILED BY REGISTERED OR CERTIFIED MAIL  TO
THE ADDRESS AT WHICH THE DEBTOR WILL BE RESIDING ON THE EXPECTED DATE OF
THE  REMOTE  DISABLING OF THE VEHICLE. THE NOTICE SHALL BE POSTMARKED NO
LATER THAN TEN DAYS PRIOR TO THE DATE ON WHICH THE PRINCIPAL CREDITOR OR
HIS AGENT OBTAINS THE RIGHT TO REMOTELY DISABLE THE VEHICLE; OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11024-07-6

S. 5269--C                          2

  11. If such principal creditor or agent sends more than fifty informa-
tion subpoenas per month, fail to keep complete records  concerning  all
information  subpoenas  sent  by  such principal creditor or agent. Such
records shall be maintained  for  five  years.  Contemporaneous  records
shall be kept that set forth with specificity the grounds for such prin-
cipal creditor or agent's reasonable belief, which must be certified and
accompany  each  information subpoena pursuant to rule fifty-two hundred
twenty-four of the civil practice law and rules, that the party  receiv-
ing the subpoena has in its possession information about the debtor that
will assist the creditor in collecting his or her judgement. In addition
to  any  other  penalty  that  [my]  MAY be imposed, failure to maintain
records in accordance with this subdivision shall subject such principal
creditor or agent to a civil penalty of not more than fifty dollars  per
subpoena,  up to a maximum of five thousand dollars per violation, in an
action brought by the attorney general[.]; OR
  S 3. This act shall take effect immediately.

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Martin J. Golden

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