§ 5-702 — Requirements for use of plain language in consumer transactions

§ 5-702. Requirements for use of plain language in consumer\ntransactions. a. Every written agreement entered into after November\nfirst, nineteen hundred seventy-eight, for the lease of space to be\noccupied for residential purposes, for the lease of personal property to\nbe used primarily for personal, family or household purposes or to which\na consumer is a party and the money, property or service which is the\nsubject of the transaction is primarily for personal, family or\nhousehold purposes must be:\n 1. Written in a clear and coherent manner using words with common and\nevery day meanings;\n 2. Appropriately divided and captioned by its various sections.\n Any creditor, seller or lessor who fails to comply with this\nsubdivision shall be liable to a consumer who is a party to a written\nagreement governed by this subdivision in an amount equal to any actual\ndamages sustained plus a penalty of fifty dollars. The total class\naction penalty against any such creditor, seller or lessor shall not\nexceed ten thousand dollars in any class action or series of class\nactions arising out of the use by a creditor, seller or lessor of an\nagreement which fails to comply with this subdivision. No action under\nthis subdivision may be brought after both parties to the agreement have\nfully performed their obligation under such agreement, nor shall any\ncreditor, seller or lessor who attempts in good faith to comply with\nthis subdivision be liable for such penalties. This subdivision shall\nnot apply to a good faith attempt to describe the constant yield or\nother method of determining the lease charge and depreciation portions\nof each base rental payment under a lease of personal property. It also\nshall not apply to agreements involving amounts in excess of two hundred\nfifty thousand dollars nor prohibit the use of words or phrases or forms\nof agreement required by state or federal law, rule or regulation or by\na governmental instrumentality.\n b. A violation of the provisions of subdivision a of this section\nshall not render any such agreement void or voidable nor shall it\nconstitute:\n 1. A defense to any action or proceeding to enforce such agreement; or\n 2. A defense to any action or proceeding for breach of such agreement.\n c. In addition to the above, whenever the attorney general finds that\nthere has been a violation of this section, he may proceed as provided\nin subdivision twelve of section sixty-three of the executive law.\n