Senate Bill S2849B

2021-2022 Legislative Session

Restricts the repossession of motor vehicles and mobile homes for certain persons suffering financial hardship as a result of the COVID-19 pandemic

download bill text pdf

Archive: Last Bill Status - In Senate Committee Consumer Protection 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
Jan 05, 2022	referred to consumer protection
Apr 20, 2021	print number 2849b
Apr 20, 2021	amend and recommit to consumer protection
Apr 13, 2021	print number 2849a
Apr 13, 2021	amend (t) and recommit to consumer protection
Jan 26, 2021	referred to consumer protection

Bill Amendments

Original

B (Active)

co-Sponsors

2021-S2849 - Details

Current Committee:: Senate Consumer Protection
Law Section:: Personal Property

2021-S2849 - Summary

Restricts the repossession of motor vehicles and mobile homes for certain persons suffering financial hardship as a result of the COVID-19 pandemic until the expiration of the restrictions on business and places of public accommodation in the county of the buyer under executive order 202 of 2020, or December 31, 2021, whichever is later.

2021-S2849 - Sponsor Memo

                                 
BILL NUMBER: S2849

SPONSOR: THOMAS
 
TITLE OF BILL:

An act in relation to restricting the repossession of motor vehicles and
mobile homes for persons suffering financial hardship as a result of the
COVID-19 pandemic; and providing for the repeal of such provisions upon
the expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

In relation to restricting the repossession of motor vehicles and mobile
homes for persons suffering financial hardship as a result of the
COVID-19 pandemic; and providing for the repeal of such provisions upon
the expiration thereof.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill provides definitions for "covered period,"
"holder of a retail instalment contract," "financial hardship," and
"vehicle-secured credit obligation."

Section two of the bill includes the following subdivisions:

Subdivision 1 prohibits creditors or a seller of motor vehicles from
repossessing a mobile home or motor vehicle for the duration of the
covered period from a consumer who has failed to make monthly payments
on a vehicle-secured credit obligation due to a financial hardship
related to the COVID-19 pandemic.

Subdivision 2 allows consumers who are experiencing a pandemic-related
financial hardship to inform the creditor or a seller of motor vehicle
in writing that they are unable to make payments on the vehicle-secured
credit obligation.

Subdivision 3 prohibits creditors from reporting any new adverse infor-
mation resulting from the COVID-19 pandemic to any consumer reporting
agency.

Subdivision 4 prohibits the assessment of fees, penalties, or additional
interest during the covered period.

Subdivision 5 prohibits creditors from requiring a consumer to pay a
lump sum of money to compensate for the accumulation of missed payments
during the covered period upon the period's expiration. In addition,
creditors cannot asses any fees, penalties or additional interest on any
vehicle-secured credit obligation owed during the duration of the
covered period.

Section three of the bill provides the effective date and repealed date.

 
JUSTIFICATION:

The impact of the COVID-19 pandemic on the U.S. economy has been momen-
tous, and has led to workers being laid off at record numbers.  With
record unemployment rates, many New Yorkers are struggling to pay their
bills. While the federal government and the state has put in place
protections against eviction and foreclosure, auto debt and repossession
has largely gone unaddressed. This is a significant issue because having
access to a motor vehicle during the pandemic helps with containing the
spread of the virus, as it allows people to avoid public transportation
and gives them the option to undergo drive-through testing.

According to the New York Federal Reserve, at the end of the second
fiscal quarter of 2020, auto loans that were past due for 90 days or
longer accounted for 5.03 percent of the total outstanding loan balance
across the U.S., an increase of 4.64 percent from the previous year.
Missing an auto loan payment can result in a loan going into default,
which gives a lender the right to repossess a consumer's motor vehicle.
A motor vehicle repossession can negatively affect a consumer's credit,
can be costly and disruptive-with effects that last for years. A repos-
session usually stays on a credit report for seven years and has a seri-
ous impact on a consumer's credit score. Additionally, a consumer might
be charged a deficiency balance if the lender's resale of the motor
vehicle does not cover the remaining balance on the auto loan plus the
costs the lender incurred in repossessing the car.

On the other hand, creditors and dealers have been offering relief to
consumers experiencing financial hardship in the form of deferment or
forbearance programs. However, these programs are temporary and will not
be available for consumers to use throughout the rest of the pandemic.
Fortunately, a handful of states, including Alaska, Illinois, and Mary-
land, have placed moratoriums on motor vehicle repossessions through
legislation or by executive orders.

It is vital that New York joins these other states in helping its resi-
dents who are experiencing financial distress with the placement of a
moratorium on repossession actions.This bill prohibits creditors and
sellers of motor vehicles from taking any action to repossess a mobile
home or motor vehicle during the pandemic and for 180 days after. More-
over, this bill also provides a reprieve from payment obligations
related to auto loans during this time period and for 180 days after.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2849 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2849
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced by Sens. THOMAS, MAYER -- read twice and ordered printed, and
   when printed to be committed to the Committee on Consumer Protection
 
 AN ACT in relation to restricting the repossession of motor vehicles and
   mobile  homes  for persons suffering financial hardship as a result of
   the COVID-19 pandemic; and providing for the repeal of such provisions
   upon the expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  For  the  purposes of this act, the following terms shall
 have the following meanings:
   1. "Covered period" means March 7, 2020 until 180 days after the expi-
 ration of the state disaster emergency declared for the entire state  by
 executive  order number 202 and any further amendments or modifications,
 and as may be further extended pursuant to section 28 of  the  executive
 law.
   2.  "Holder of a retail instalment contract" shall have the same mean-
 ing as set forth in section 301 of the personal property law.
   3. "Financial hardship" means (a) significant loss of household income
 during the COVID-19 pandemic;
   (b) increase in necessary out-of-pocket expenses related to performing
 essential work or related to health impacts during the COVID-19  pandem-
 ic;
   (c)  childcare  responsibilities  or  responsibilities  to care for an
 elderly, disabled, or sick family member during  the  COVID-19  pandemic
 have  negatively  affected  the ability of holder of a retail instalment
 contract to obtain meaningful employment or  earn  income  or  increased
 necessary out-of-pocket expenses; or
   (d)  other  circumstances  related to the COVID-19 pandemic have nega-
 tively affected the ability to  obtain  meaningful  employment  or  earn
 income  or  have significantly reduced household income or significantly
 increased expenses; and public assistance, including unemployment insur-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08682-02-1

 S. 2849                             2
 
 ance, pandemic unemployment assistance, disability  insurance,  or  paid
 family  leave,  does  not  fully  make  up  for lost household income or
 increased expenses.
   4.  "Vehicle-secured  credit  obligation" shall mean either a loan for
 personal, family, or household purposes that is secured by a mobile home
 or motor vehicle; or a retail instalment contract as defined in  section
 301 of the personal property law.
   § 2. 1. Notwithstanding any provision of law to the contrary, no cred-
 itor,  or  seller  of  a  motor  vehicle  subject to a retail instalment
 contract shall repossess or otherwise take possession of a  mobile  home
 or  motor  vehicle for the duration of the covered period for failure of
 the buyer to make payments if  such  person  is  experiencing  financial
 hardship  related  to the COVID-19 public health emergency and is unable
 to make a loan or other agreed on payment for a  vehicle-secured  credit
 obligation.
   2. A holder of a retail instalment contract who is experiencing finan-
 cial  hardship  as defined in this act may make a written declaration to
 that fact and provide such declaration to the creditor or  seller  of  a
 motor vehicle under a retail instalment contract.
   3.  No  creditor  shall  report  any new adverse information that is a
 result of the COVID-19 public health emergency to any consumer reporting
 agency.
   4. No creditor shall assess any fees, penalties or additional interest
 on any vehicle-secured credit obligation for the duration of the covered
 period.
   5. Upon expiration of the covered period, no creditor shall require  a
 lump sum payment or assess any fees, penalties or additional interest on
 any  vehicle-secured  credit  obligation  owed  for  the duration of the
 covered period. A creditor shall shift the missed payments to the end of
 the scheduled term.
   § 3. This act shall take effect immediately and shall  expire  and  be
 deemed  repealed  180  days  after  the expiration of the state disaster
 emergency declared for the entire state by executive  order  number  202
 and  any  further  amendments  or  modifications,  and as may be further
 extended pursuant to section 28 of the executive law.

co-Sponsors

2021-S2849A - Details

Current Committee:: Senate Consumer Protection
Law Section:: Personal Property

2021-S2849A - Summary

2021-S2849A - Sponsor Memo

                                
 
BILL NUMBER: S2849A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act in relation to restricting the repossession of motor vehicles and
mobile homes for persons suffering financial hardship as a result of the
COVID-19 pandemic

 
PURPOSE OR GENERAL IDEA OF BILL:

Restricts the repossession of motor vehicles and mobile homes for
persons suffering financial hardship as a result of the COVID-19 pandem-
ic.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill provides definitions for "covered period,"
"qualified buyer," "holder of a retail instalment contract," "financial
hardship," and "vehicle-secured credit obligation."

Section two of the bill includes the following subdivisions:  Subdivi-
sion 1 prohibits creditors or a seller of motor vehicles from repossess-
ing a mobile home or motor vehicle for the duration of the covered peri-
od from a qualified buyer who has failed to make monthly payments on a
vehicle-secured credit obligation due to a financial hardship related to
the COVID-19 pandemic. A qualified buyer is an individual whose primary
residence is located in New York and encumbered by a vehicle secured
credit obligation or whose primary vehicle used for transportation to
work, school, or medical appointments is encumbered by a vehicle secured
credit obligation.  Subdivision 2 allows a qualified buyer who is expe-
riencing a pandemic-related financial hardship to inform the holder of a
vehicle secured credit obligation in writing that they are unable to
make payments on the vehicle-secured credit obligation. A holder of a
vehicle secured credit obligation may request the qualified buyer submit
a declaration of hardship every three months.

Subdivision 3 prohibits holders of vehicle secured credit obligations
from reporting any new adverse information resulting from the COVID-19
pandemic to any consumer reporting agency.

Subdivision 4 prohibits the assessment of fees, penalties, or additional
interest during the covered period.

Subdivision 5 prohibits holders of vehicle secured credit obligations
from requiring a qualified buyer to pay a lump sum of money to compen-
sate for the accumulation of missed payments during the covered period
upon the period's expiration. In addition, holders of vehicle secured
credit obligations cannot asses any fees, penalties or additional inter-
est on any vehicle-secured credit obligation owed during the duration of
the covered period.

Section three of the bill provides the effective date and repealed date.

 
JUSTIFICATION:

The impact of the COVID-19 pandemic on the U.S. economy has been momen-
tous, and has led to workers being laid off at record numbers.  With
record unemployment rates, many New Yorkers are struggling to pay their
bills. While the federal government and the state has put in place
protections against eviction and foreclosure, auto debt and repossession
has largely gone unaddressed. This is a significant issue because having
access to a motor vehicle during the pandemic helps with containing the
spread of the virus, as it allows people to avoid public transportation
and gives them the option to undergo drive-through testing.

According to the New York Federal Reserve, at the end of the second
fiscal quarter of 2020, auto loans that were past due for 90 days or
longer accounted for 5.03 percent of the total outstanding loan balance
across the U.S., an increase of 4.64 percent from the previous year.
Missing an auto loan payment can result in a loan going into default,
which gives a lender the right to repossess a consumer's motor vehicle.
A motor vehicle repossession can negatively affect a consumer's credit,
can be costly and disruptive-with effects that last for years. A repos-
session usually stays on a credit report for seven years and has a seri-
ous impact on a consumer's credit score. Additionally, a consumer might
be charged a deficiency balance if the lender's resale of the motor
vehicle does not cover the remaining balance on the auto loan plus the
costs the lender incurred in repossessing the car.

On the other hand, creditors and dealers have been offering relief to
consumers experiencing financial hardship in the form of deferment or
forbearance programs. However, these programs are temporary and will not
be available for consumers to use throughout the rest of the pandemic.
Fortunately, a handful of states, including Alaska, Illinois, and Mary-
land, have placed moratoriums on motor vehicle repossessions through
legislation or by executive orders.  It is vital that New York joins
these other states in helping its residents who are experiencing, finan-
cial distress with the placement of a moratorium on repossession
actions.This bill prohibits creditors and sellers of motor vehicles from
taking any action to repossess a mobile home or motor vehicle during the
pandemic and for 180 days after. Moreover, this bill also provides a
reprieve from payment obligations related to auto loans during this time
period and for 180 days after.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2849A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2849--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced by Sens. THOMAS, MAYER -- read twice and ordered printed, and
   when  printed  to be committed to the Committee on Consumer Protection
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and recommitted to said committee
 
 AN ACT in relation to restricting the repossession of motor vehicles and
   mobile  homes  for persons suffering financial hardship as a result of
   the COVID-19 pandemic
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  For  the  purposes of this act, the following terms shall
 have the following meanings:
   1. "Covered period" means March 7, 2020 until the date on  which  none
 of  the provisions that closed or otherwise restricted public or private
 businesses or places of public accommodation, or  required  postponement
 or  cancellation  of  all non-essential gatherings of individuals of any
 size for any reason in Executive  Orders  202.3,  202.4,  202.5,  202.6,
 202.7, 202.8, 202.9, 202.10, 202.11, 202.12, 202.13, 202.15, as extended
 by  Executive  Orders  202.28  and 202.31 and as further extended by any
 future Executive Order, issued in response  to  the  COVID-19  pandemic,
 continue to apply in the county of the qualified buyer's residence.
   2.  "Qualified  buyer" means an individual (a) whose primary residence
 is located in New York and is encumbered  by  a  vehicle-secured  credit
 obligation,  or  (b) whose primary vehicle is used for transportation to
 work, school, or medical appointments and is encumbered by a vehicle-se-
 cured credit obligation.
   3. "Holder of a retail instalment contract" shall have the same  mean-
 ing as set forth in section 301 of the personal property law.
   4. "Financial hardship" means (a) significant loss of household income
 during the COVID-19 pandemic;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08682-03-1

 S. 2849--A                          2
 
   (b) increase in necessary out-of-pocket expenses related to performing
 essential  work or related to health impacts during the COVID-19 pandem-
 ic;
   (c)  childcare  responsibilities  or  responsibilities  to care for an
 elderly, disabled, or sick family member during  the  COVID-19  pandemic
 have  negatively  affected  the ability of holder of a retail instalment
 contract to obtain meaningful employment or  earn  income  or  increased
 necessary out-of-pocket expenses; or
   (d)  other  circumstances  related to the COVID-19 pandemic have nega-
 tively affected the ability to  obtain  meaningful  employment  or  earn
 income  or  have significantly reduced household income or significantly
 increased expenses; and public assistance, including unemployment insur-
 ance, pandemic unemployment assistance, disability  insurance,  or  paid
 family  leave,  does  not  fully  make  up  for lost household income or
 increased expenses.
   5.  "Vehicle-secured  credit  obligation"  means  either  a  loan  for
 personal, family, or household purposes that is secured by a mobile home
 or  motor vehicle; or a retail instalment contract as defined in section
 301 of the personal property law.
   § 2. 1. Notwithstanding any provision of law to the contrary, no cred-
 itor, or seller of a  motor  vehicle  subject  to  a  retail  instalment
 contract  shall  repossess or otherwise take possession of a mobile home
 or motor vehicle of a qualified buyer for the duration  of  the  covered
 period  for  failure  of  the  qualified  buyer to make payments if such
 person is experiencing financial hardship related to the COVID-19 public
 health emergency and is unable to make a loan or other agreed on payment
 for a vehicle-secured credit obligation.
   2. A qualified buyer who is experiencing financial hardship as defined
 in this act shall make a written declaration to that  fact  and  provide
 such declaration to the holder of a vehicle-secured credit obligation. A
 holder  of  a  vehicle-secured credit obligation may request a qualified
 buyer submit a written declaration of hardship every 3 months.
   3. No holder of a vehicle-secured credit obligation shall  report  any
 new  adverse  information that is a result of the COVID-19 public health
 emergency to any consumer reporting agency.
   4. No holder of a vehicle-secured credit obligation shall  assess  any
 fees,  penalties  or  additional  interest on any vehicle-secured credit
 obligation for the duration of the covered period.
   5. Upon expiration of the covered period, no holder of  a  vehicle-se-
 cured  credit  obligation shall require a lump sum payment or assess any
 fees, penalties or additional interest  on  any  vehicle-secured  credit
 obligation  owed  for  the duration of the covered period. A holder of a
 vehicle-secured credit obligation shall shift the missed payments to the
 end of the scheduled term.
   § 3. This act shall take effect immediately.

co-Sponsors

2021-S2849B (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: Personal Property

2021-S2849B (ACTIVE) - Summary

2021-S2849B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2849B

SPONSOR: THOMAS
 
TITLE OF BILL:

An act in relation to restricting the repossession of motor vehicles and
mobile homes for persons suffering financial hardship as a result of the
COVID-19 pandemic

 
PURPOSE OR GENERAL IDEA OF BILL:

Restricts the repossession of motor vehicles and mobile homes for
persons suffering financial hardship as a result of the COVID-19 pandem-
ic.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill provides definitions for "covered period,"
"qualified buyer," "holder of a retail instalment contract," "financial
hardship," and "vehicle-secured credit obligation."

Section two of the bill includes the following subdivisions:

Subdivision 1 prohibits creditors or a seller of motor vehicles from
repossessing a mobile home or motor vehicle for the duration of the
covered period from a qualified buyer who has failed to make monthly
payments on a vehicle-secured credit obligation due to a financial hard-
ship related to the COVID-19 pandemic. A qualified buyer is an individ-
ual whose primary residence is located in New York and encumbered by a
vehicle secured credit obligation or whose primary vehicle used for
transportation to work, school, or medical appointments is encumbered by
a vehicle secured credit obligation.

Subdivision 2 allows a qualified buyer who is experiencing a pandemic-
related financial hardship to inform the holder of a vehicle secured
credit obligation in writing that they are unable to make payments on
the vehicle-secured credit obligation. A holder of a vehicle secured
credit obligation may request the qualified buyer submit a declaration
of hardship every three months.

Subdivision 3 prohibits holders of vehicle secured credit obligations
from reporting any new adverse information resulting from the COVID-19
pandemic to any consumer reporting agency.

Subdivision 4 prohibits the assessment of fees, penalties, or additional
interest during the covered period.

Subdivision 5 prohibits holders of vehicle secured credit obligations
from requiring a qualified buyer to pay a lump sum of money to compen-
sate for the accumulation of missed payments during the covered period
upon the period's expiration. In addition, holders of vehicle secured
credit obligations cannot asses any fees, penalties or additional inter-
est on any vehicle-secured credit obligation owed during the duration of
the covered period.

Section three of the bill provides the effective date and repealed date.

 
JUSTIFICATION:

The impact of the COVID-19 pandemic on the U.S. economy has been momen-
tous, and has led to workers being laid off at record numbers.  With
record unemployment rates, many New Yorkers are struggling to pay their
bills. While the federal government and the state has put in place
protections against eviction and foreclosure, auto debt and repossession
has largely gone unaddressed. This is a significant issue because having
access to a motor vehicle during the pandemic helps with containing the
spread of the virus, as it allows people to avoid public transportation
and gives them the option to undergo drive-through testing.

According to the New York Federal Reserve, at the end of the second
fiscal quarter of 2020, auto loans that were past due for 90 days or
longer accounted for 5.03 percent of the total outstanding loan balance
across the U.S., an increase of 4.64 percent from the previous year.
Missing an auto loan payment can result in a loan going into default,
which gives a lender the right to repossess a consumer's motor vehicle.
A motor vehicle repossession can negatively affect a consumer's credit,
can be costly and disruptive-with effects that last for years. A repos-
session usually stays on a credit report for seven years and has a seri-
ous impact on a consumer's credit score. Additionally, a consumer might
be charged a deficiency balance if the lender's resale of the motor
vehicle does not cover the remaining balance on the auto loan plus the
costs the lender incurred in repossessing the car.

On the other hand, creditors and dealers have been offering relief to
consumers experiencing financial hardship in the form of deferment or
forbearance programs. However, these programs are temporary and will not
be available for consumers to use throughout the rest of the pandemic.
Fortunately, a handful of states, including Alaska, Illinois, and Mary-
land, have placed moratoriums on motor vehicle repossessions through
legislation or by executive orders.

It is vital that New York joins these other states in helping its resi-
dents who are experiencing financial distress with the placement of a
moratorium on repossession actions.This bill prohibits creditors and
sellers of motor vehicles from taking any action to repossess a mobile
home or motor vehicle during the pandemic and for 180 days after. More-
over, this bill also provides a reprieve from payment obligations
related to auto loans during this time period and for 180 days after.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2849B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2849--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced by Sens. THOMAS, MAYER -- read twice and ordered printed, and
   when  printed  to be committed to the Committee on Consumer Protection
   -- 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  commit-
   tee
 
 AN ACT in relation to restricting the repossession of motor vehicles and
   mobile  homes  for persons suffering financial hardship as a result of
   the COVID-19 pandemic
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  For  the  purposes of this act, the following terms shall
 have the following meanings:
   1. "Covered period" means March 7, 2020 until the  later  of  December
 31,  2021  or date on which none of the provisions that closed or other-
 wise restricted public or private businesses or places of public  accom-
 modation,  or required postponement or cancellation of all non-essential
 gatherings of individuals of any size for any reason in Executive Orders
 202.3, 202.4, 202.5, 202.6, 202.7, 202.8, 202.9, 202.10, 202.11, 202.12,
 202.13, 202.15, as extended by Executive Orders 202.28 and 202.31 and as
 further extended by any future Executive Order, issued  in  response  to
 the  COVID-19 pandemic, continue to apply in the county of the qualified
 buyer's residence.
   2. "Qualified buyer" means an individual (a) whose  primary  residence
 is  located  in  New  York and is encumbered by a vehicle-secured credit
 obligation, or (b) whose primary vehicle is used for  transportation  to
 work, school, or medical appointments and is encumbered by a vehicle-se-
 cured credit obligation.
   3.  "Holder of a retail instalment contract" shall have the same mean-
 ing as set forth in section 301 of the personal property law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08682-04-1

 S. 2849--B                          2
 
   4. "Financial hardship" means (a) significant loss of household income
 during the COVID-19 pandemic;
   (b) increase in necessary out-of-pocket expenses related to performing
 essential  work or related to health impacts during the COVID-19 pandem-
 ic;
   (c) childcare responsibilities or  responsibilities  to  care  for  an
 elderly,  disabled,  or  sick family member during the COVID-19 pandemic
 have negatively affected the ability of holder of  a  retail  instalment
 contract  to  obtain  meaningful  employment or earn income or increased
 necessary out-of-pocket expenses; or
   (d) other circumstances related to the COVID-19  pandemic  have  nega-
 tively  affected  the  ability  to  obtain meaningful employment or earn
 income or have significantly reduced household income  or  significantly
 increased expenses; and public assistance, including unemployment insur-
 ance,  pandemic  unemployment  assistance, disability insurance, or paid
 family leave, does not fully  make  up  for  lost  household  income  or
 increased expenses.
   5.  "Vehicle-secured  credit  obligation"  means  either  a  loan  for
 personal, family, or household purposes that is secured by a mobile home
 or motor vehicle; or a retail instalment contract as defined in  section
 301 of the personal property law.
   § 2. 1. Notwithstanding any provision of law to the contrary, no cred-
 itor,  or  seller  of  a  motor  vehicle  subject to a retail instalment
 contract shall repossess or otherwise take possession of a  mobile  home
 or  motor  vehicle  of a qualified buyer for the duration of the covered
 period for failure of the qualified  buyer  to  make  payments  if  such
 person is experiencing financial hardship related to the COVID-19 public
 health emergency and is unable to make a loan or other agreed on payment
 for a vehicle-secured credit obligation.
   2. A qualified buyer who is experiencing financial hardship as defined
 in  this  act  shall make a written declaration to that fact and provide
 such declaration to the holder of a vehicle-secured credit obligation. A
 holder of a vehicle-secured credit obligation may  request  a  qualified
 buyer submit a written declaration of hardship every 3 months.
   3.  No  holder of a vehicle-secured credit obligation shall report any
 new adverse information that is a result of the COVID-19  public  health
 emergency to any consumer reporting agency.
   4.  No  holder of a vehicle-secured credit obligation shall assess any
 fees, penalties or additional interest  on  any  vehicle-secured  credit
 obligation for the duration of the covered period.
   5.  Upon  expiration of the covered period, no holder of a vehicle-se-
 cured credit obligation shall require a lump sum payment or  assess  any
 fees,  penalties  or  additional  interest on any vehicle-secured credit
 obligation owed for the duration of the covered period. A  holder  of  a
 vehicle-secured credit obligation shall shift the missed payments to the
 end of the scheduled term.
   § 3. This act shall take effect immediately.

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Senate Bill S2849B

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Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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Sponsored By

Kevin Thomas

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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Shelley B. Mayer

2021-S2849 - Details

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Shelley B. Mayer

Robert Jackson

Jessica Ramos

2021-S2849B (ACTIVE) - Details

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