BILL NUMBER: S4778
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the personal property law, in relation to prohibiting
certain provisions in retail lease agreements
 
PURPOSE OR GENERAL IDEA OF BILL:
To prevent the imposition of certain fees at the expiration of a term on
a motor vehicle lease which constitutes administrative, clerical or
handling charges.
 
SUMMARY OF PROVISIONS:
This bill adds a new section (j) to Section 337(14) of the Personal
Property Law dealing with retail auto lease agreements.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
 
JUSTIFICATION:
The proposed new section prohibits charging a turn-in fee at the expira-
tion of the term of the lease, the basis of which is solely for adminis-
trative, handling or clerical charges.When a lessee turns in an automo-
bile at the end of the lease that has not been damaged nor exceeds the
contractual mileage allowed, there is no basis for charging an addi-
tional amount called a turn-in fee for purely administrative costs for
the dealer to accept the automobile.This is a fee very seldom discussed
with the lessee at the time the lease is signed. The lesser often offers
to waive such a fee as an incentive to the customer to do a subsequent
lease. This discourages the consumer from seeking the best rate avail-
able.
 
PRIOR LEGISLATIVE HISTORY:
2022 REFERRED TO SENATE CONSUMER PROTECTION 2022 passed assembly
2021 REFERRED TO SENATE CONSUMER PROTECTION 2021 assembly third reading
2020 REFERRED TO SENATE CONSUMER PROTECTION 2020 assembly third reading
2019 REFERRED TO SENATE CONSUMER PROTECTION 2019 assembly third reading
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State
 
EFFECTIVE DATE:
This act shall effect on the first of January next succeeding the date
on which it shall have become a law and shall apply to leases executed
on and after such date.