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 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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2013-S5206 (ACTIVE) - Details

See Assembly Version of this Bill:
A7777
Current Committee:
Senate Judiciary
Law Section:
General Obligations Law
Laws Affected:
Amd ยง5-702, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2015-2016: S3135, S3155, A1152
2017-2018: S5209, S6069, S7074, A1085
2019-2020: S2657, A2653
2021-2022: S4211
2023-2024: S2064

2013-S5206 (ACTIVE) - Summary

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

2013-S5206 (ACTIVE) - Sponsor Memo

2013-S5206 (ACTIVE) - Bill Text download pdf 

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

                                  5206

                       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

  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  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.
                                                           LBD10875-02-3

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