Senate Bill S3442

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3442
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the personal property law, in  relation  to  rental-pur-
   chase agreement forms
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1.  Subdivision 2, paragraph (e) of subdivision 3, and  subdi-
 vision  4 of section 501 of the personal property law, as added by chap-
 ter 792 of the laws of 1986, are amended to read as follows:
   2. Disclosures required by this section must be printed  or  typed  in
 each  rental-purchase  agreement in a size equal to at least [ten-point]
 TWELVE-POINT bold-faced type.
   (e) requiring the payment of a late charge or reinstatement fee unless
 a periodic payment is delinquent for more than three days for agreements
 that are renewed on week by week terms and  seven  days  for  agreements
 that  are  renewed  on  month by month terms[,]; PROVIDED, HOWEVER, THAT
 NEITHER SATURDAYS, SUNDAYS,  NOR  FEDERALLY-RECOGNIZED  HOLIDAYS  DURING
 WHICH  THE  UNITED STATES POSTAL SERVICE IS NOT OPEN TO THE PUBLIC SHALL
 COUNT TOWARD THE THREE OR SEVEN DAY TOTALS, and the charge or fee is  in
 an  amount  not  more  than the greater of ten percent of the delinquent
 amount or three dollars for agreements that are renewed on week by  week
 terms  and  not  more  than the greater of ten percent of the delinquent
 amount or five dollars for agreements that are renewed on month by month
 terms. In the event that multiple items are leased to a consumer  pursu-
 ant  to  more  than  one rental-purchase agreement, any late fee imposed
 pursuant to this section shall not exceed ten percent of  the  total  of
 the periodic payments that are delinquent.
   4.  Only  one  late  charge or reinstatement fee may be assessed for a
 delinquent periodic payment regardless of the  period  during  which  it
 remains in default. No merchant shall assess a late charge for a period-
 ic  payment made in full on its due date or within three days for agree-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07979-01-1

 S. 3442                             2
 
 ments that are renewed on week by week terms or seven  days  for  agree-
 ments that are renewed on month by month terms when the only delinquency
 is  attributable  to  late  fees  assessed on earlier periodic payments;
 PROVIDED, HOWEVER, THAT NEITHER SATURDAYS, SUNDAYS, NOR FEDERALLY-RECOG-
 NIZED HOLIDAYS DURING WHICH THE UNITED STATES POSTAL SERVICE IS NOT OPEN
 TO  THE  PUBLIC  SHALL COUNT TOWARD THE THREE OR SEVEN DAY TOTALS.  With
 respect to payments accepted  by  mail  or  by  store  deposit  box,  no
 merchant  shall  assess a late fee for payments which are post-marked or
 received before the expiration of the applicable delinquency periods.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have  become  a  law  and  shall apply to all agreements entered into or
 offered on or after such date.