Provides for a cap on the credit service charge computed and collected on a retail instalment contract

Latest action Mar 23, 2026

Provides for a cap on the credit service charge computed and collected on a retail instalment contract.

Not chosen yet

Where it stands

Passed one of the two chambers; it still needs the other.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A5741, the matching bill in the Assembly.

Amends the Personal Property Law.

Committee

Consumer Affairs and Protection · New York State Assembly

Also referred to Consumer Protection · New York State Senate.

Purpose, from the sponsor's memo

To cap the interest on retail instalment contracts at the state civil usury rate.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateMar 23, 2026Result: passed
(59) (1) (0) (3)
Vote: Committee vote · Consumer Protection
Senate Consumer ProtectionJan 28, 2026Result: passed
(7) (0) (0) (0)
Vote: Floor vote
NY SenateApr 9, 2025Result: passed
(59) (1) (0) (3)
Vote: Committee vote · Consumer Protection
Senate Consumer ProtectionMar 11, 2025Result: passed
(7) (0) (0) (0)

Cosponsors

Lea Webb

Democratic1

Lea Webb

See the full list on nysenate.gov

The sponsor's argument

Why Rachel May says this is needed

Installment credit can be beneficial for consumers because it allows them to take home and use products while they make payments towards the product's total cash price. However, there are abusive practices within the industry that are not in the best interests of consumers, such as exorbitant interest. In New York, the state civil usury rate is 16% however, this rate does not apply to installment credit because of the time price doctrine. Under the time price doctrine a retail installment contract is not considered a loan and is then exempted from state usury laws. The retail installment sales act, which governs these transactions, states that the maximum interest rate that can be charged is whatever rate is written in the contract and agreed to by the buyer. This bill curbs that abusive practice by setting a cap on installment credit interest rates that is equal to the state usury rate.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Mar 23, 2026
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Mar 23, 2026
Passed a chamber
PASSED SENATE
NY Senate
Mar 23, 2026
Referred to committee
REFERRED TO CONSUMER AFFAIRS AND PROTECTION
NY Assembly
Feb 3, 2026
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
Jan 29, 2026
2ND Report CAL.
2ND REPORT CAL.
NY Senate

Show full history (12 earlier events)

Jan 28, 2026
1ST Report CAL.183
1ST REPORT CAL.183
NY Senate
Jan 7, 2026
Died in Assembly
DIED IN ASSEMBLY
NY Assembly
Jan 7, 2026
Referred to committee
REFERRED TO CONSUMER AFFAIRS AND PROTECTION
NY Assembly
Jan 7, 2026
Referred to committee
REFERRED TO CONSUMER PROTECTION
NY Senate
Apr 9, 2025
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Apr 9, 2025
Passed a chamber
PASSED SENATE
NY Senate
Apr 9, 2025
Referred to committee
REFERRED TO CONSUMER AFFAIRS AND PROTECTION
NY Assembly
Mar 13, 2025
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
Mar 12, 2025
2ND Report CAL.
2ND REPORT CAL.
NY Senate
Mar 11, 2025
1ST Report CAL.514
1ST REPORT CAL.514
NY Senate
Feb 25, 2025
Referred to committee
REFERRED TO CONSUMER PROTECTION
NY Senate
Feb 20, 2025
Referred to committee
REFERRED TO CONSUMER AFFAIRS AND PROTECTION
NY Assembly

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Nov 2, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

Your position