Gov. Andrew Cuomo signed into law a bill that benefits credit union members. Under the legislation, consumers who have their car repossessed will now have up to 10 days to turn in their license plates, potentially allowing them to avoid costly re-registration fees.
Under the prior law, consumers who had their vehicle repossessed had 24 hours to turn in their license plates to the Department of Motor Vehicles. However, those same consumers had up to 10 days to pay creditors in order to regain possession of the vehicle.
The previous structure of the repossession process left some consumers, who were able to pay back creditors within the 10-day timeframe, stuck with additional fees to re-register their vehicle.
Under the new law, consumers will have both 10 days to pay back creditors and turn in their license plates. The legislation also modernizes the process of consumer notification by allowing repossessors to notify consumers via text message and email in addition to first class mail and phone.
The legislation was spearheaded by TCAR Recovery & Remarketing Services, which worked closely with state Sen. Jim Tedisco, R-Adirondack, to have the legislation introduced several years ago.
The New York Credit Union Association penned a memo in support of the legislation for the first time this year, viewing it as favorable to credit union members and potentially easing their financial burden during a period of hardship.