State Finance Disclosure Bill Introduced

State Finance Disclosure Bill Introduced

No one asks the furniture salesperson about what their markup is, but two State Senators have proposed a bill that will require just that from New York's car dealers. The bill is modeled after the NYC law that was passed a few years back which requires NYC dealers to disclose their markup on customer financing.

Sen. James Sanders (D - Queens) and Sen. Liz Krueger (D - Manhattan) have introduced a bill (S.1614 SANDERS) that would place new restrictions on dealer financing charges, including requiring dealers to disclose the markup on every financed sale. GNYADA will issue a Memorandum in Opposition to Senate Transportation Committee members explaining why this bill is unnecessary, would have unintended consequences, and would ultimately hurt consumers in obtaining low-cost financing for their vehicle purchase.

The bill also allows purchasers to file a lawsuit seeking damages and attorney's fees from the dealer if they were not provided with the dealer’s financial buy rate and what the markup rate was on the transaction. In addition, the bill authorizes the Department of Financial Services to scrutinize dealer financing charges for patterns of racial discrimination.