Legislation was signed into law by Gov. Andrew Cuomo requiring that creditors give borrowers notice of their use of technology that can remotely disable their car in the event that it needs to be repossessed. This new legislation, signed by Cuomo on Oct. 2, will take effect immediately.
The law requires two distinct notices: the loan agreement must inform the borrower that the institution uses a Payment Assurance Device; and a separate notice, postmarked at least ten days prior to the disabling, explaining that the car may be disabled. This notice must be sent out using registered or certified mail.
Credit unions should be aware of this change and are encouraged to update their policies, contracts and lending disclosures accordingly.
To learn more, visit the New York’s State of Mind blog .