AFSA Comments on New York Legislation Removing Early Lease Termination Liability in the Event of Death
On June 20, AFSA submitted a comment letter to the New York legislature raising concerns about AB 2078 and its companion SB 4019, which would remove liability for the early termination of a lease in the event of a lessee’s death. The bills are on the calendar for consideration on the Assembly floor on the final day of the session before the legislature recesses for the year.
AFSA’s letter outlined the need for charges for early termination of a lease which are authorized and regulated under existing law. It also explained that the existing protections in state law protecting consumers from abuse make the bills unnecessary and do not warrant the significant disruption to the state’s credit markets. The letter also identified inconsistencies in the legislative text that would cause significant implementation issues. AFSA also noted that vehicle leases obligations are based on an underlying tangible asset that depreciates in value over time and is subject to physical wear and tear, making them significantly different than other consumer contracts, like those for internet or cell phone services, which must include similar provisions to those proposed by this legislation.
AFSA will continue to monitor the process and keep members apprised of any further efforts to pass the proposed legislation.
June 20th, 2019 by Dan Bucherer