New York Assembly Bill A08423

New York 2025-2026 Regular Session

• Introduced: 5/15/25
• Refer: 5/15/25
• Refer: 1/7/26

Caption

Limits the amount of certain credit service charges in motor vehicle retail installment contracts.

Impact

The introduction of this bill is poised to have significant implications for consumers in New York. By capping credit service charges, it ensures that potential buyers are not subjected to exorbitant fees, which could otherwise lead to unmanageable debt. The enforcement of such limits is expected to enhance consumer protection and promote transparency in the financial arrangements tied to motor vehicle sales. It could lead to more consumers feeling secure in their purchasing decisions, knowing that their financial obligations have defined and reasonable limits.

Summary

Bill A08423 seeks to amend the personal property law by limiting the amount of credit service charges that can be applied in motor vehicle retail installment contracts. Specifically, the bill establishes a cap on such charges, stating it cannot exceed sixteen dollars per one hundred dollars per annum. This measure aims to create fairer finance practices within the auto retail industry, addressing the often complex and varied credit charges that buyers encounter when purchasing vehicles on installment plans.

Contention

While the bill presents a protective measure for consumers, there may be points of contention regarding its potential impact on motor vehicle retailers and lenders. Critics may argue that imposing such limits could restrict the flexibility that retailers need to cover their own costs and risks associated with financing options. There may be concerns about how this could ultimately affect the availability and variety of financing options for consumers. The balance between protecting consumers and ensuring that businesses can operate viably will likely be a critical focus in discussions surrounding this bill.