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American Financial Services Association

SGA Urges Cuomo to Veto SB 4019

SGA Urges Cuomo to Veto SB 4019

This week, AFSA’s State Government Affairs team submitted a letter to New York Governor Andrew Cuomo urging him to veto SB 4019, which would remove liability for the early termination of a lease in the event of a lessee’s death.

AFSA’s letter outlined the need for fees for early termination of a lease which are authorized and regulated under existing law. It also explained that the existing state law protects consumers from abuses, making the bill unnecessary and avoiding 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-lease 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 mobile phone services, which must include similar provisions to those proposed by this legislation. In June AFSA sent a letter on this bill to the Speaker of the New York Assembly while the bill was still pending in the legislature, but the bill passed without amendments. You can view this letter, along with other comment letters at the direct advocacy section of SGA’s webpage.

September 5th, 2019 by

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