S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1085--A
                                                          Cal. No. 75
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 10, 2017
                                ___________
 
 Introduced  by  M.  of  A. DINOWITZ, WEPRIN, SKOUFIS, GOTTFRIED, ARROYO,
   JOYNER -- Multi-Sponsored by -- M. of A. HEVESI, HIKIND --  read  once
   and referred to the Committee on Judiciary -- ordered to a third read-
   ing  --  passed by Assembly and delivered to the Senate, recalled from
   the  Senate,  vote  reconsidered,  bill  amended,  ordered  reprinted,
   retaining its place on the special order of third reading
 
 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:
 
   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 [fifty] ONE HUNDRED thousand
 dollars nor prohibit the use of words or phrases or forms  of  agreement
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03570-03-8

 A. 1085--A                          2
 
 required  by  state  or  federal law, rule or regulation or by a govern-
 mental instrumentality.
   § 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.