Senate Bill S3704

Signed By Governor
2019-2020 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 Via A2653 - Signed by Governor

  • 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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2019-S3704 (ACTIVE) - Details

See Assembly Version of this Bill:
A2653
Law Section:
General Obligations Law
Laws Affected:
Amd §5-702, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2013-2014: A7777
2015-2016: A1152
2017-2018: A1085

2019-S3704 (ACTIVE) - Summary

Increases the monetary exclusion on the requirement of plain language in consumer contracts from $100,000 to $250,000.

2019-S3704 (ACTIVE) - Sponsor Memo

2019-S3704 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3704
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 13, 2019
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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 484 of  the  laws  of
 2018, 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 [one] TWO hundred FIFTY thou-
 sand dollars nor prohibit the use of words or phrases or forms of agree-
 ment required by state or federal  law,  rule  or  regulation  or  by  a
 governmental 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; provided, however, that if chapter 484 of the
 laws of 2018 shall not have taken effect on or  before  such  date  then
 section  one  of  this act shall take effect on the same date and in the
 same manner as such chapter of the laws of 2018 takes effect.

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