2019 New York Laws
PEP - Personal Property
Article 9 - Motor Vehicle Retail Instalment Sales Act
303 - Credit Service Charge Limitation.

§  303.  Credit  service  charge  limitation.  1.  A retail seller may
  contract for in a retail instalment contract  and  charge,  receive  and
  collect the credit service charge authorized by this article at the rate
  or rates agreed to by the retail seller and the buyer.
The  credit  service  charge  authorized  by this subdivision shall be
  computed on an amount equal to the total of the difference  between  the
  cash  sale price of the motor vehicle and the amount of the buyer's down
  payment and the amount of official fees, and such charge may be made  on
  the  amount  included  in the contract for insurance as determined under
  subdivision six of section three hundred two of this chapter.
2. The credit service charge  at  the  rate  or  rates  authorized  in
  subdivision  one  shall  be  computed  on  the amounts on which they are
  respectively required to be computed as specified in subdivision one  on
  contracts  payable in successive monthly instalments substantially equal
  in amount extending for a period of one year. On contracts providing for
  instalments extending for a period less than or greater than  one  year,
  the credit service charge shall be computed proportionately.
3. When a retail instalment contract provides for unequal or irregular
  instalments,  the  credit service charge shall be at the effective rates
  provided in subdivision one, having  due  regard  for  the  schedule  of
  instalments.
4.  As an alternative to the credit service charge provided for above,
  a retail seller may contract for in a  retail  instalment  contract  and
  charge,  receive  and  collect a credit service charge calculated on the
  unpaid balances  of  an  amount  computed  as  provided  in  the  second
  paragraph  of  subdivision one above, for the time outstanding according
  to a generally accepted actuarial method at rates  that  may  vary  from
  time  to  time and in accordance with the provisions of the contract. On
  any contract with a variable rate credit service charge made pursuant to
  this subdivision the rate shall be determined at  regular  intervals  as
  set forth in the contract and in accordance with such regulations as the
  superintendent of financial services shall prescribe but said rate shall
  not  vary  more  often  than once in any three month period and shall be
  based  on  a  published  index  that  is  (a)  readily  available,   (b)
  independently  verifiable,  (c)  beyond the control of the retail seller
  and (d) approved by the superintendent.
The superintendent shall adopt  regulations  with  respect  to  retail
  installment contracts that provide for a variable rate of credit-service
  charge,  including  but  not limited to: (a) providing for disclosure to
  the buyer by the retail seller of the circumstances under which the rate
  may increase, any limitations on the increase, the effect of an increase
  and an example of the payment terms that would result from an  increase;
  (b)  providing  for  disclosure  to  the buyer by the retail seller of a
  history of the fluctuations of the index over  a  reasonable  period  of
  time;  and  (c)  providing  for notice to the buyer by the retail seller
  prior to any rate increase or change in the terms of payment.
5. The credit  service  charge  shall  be  inclusive  of  all  charges
  incident to investigating and making the contract, and for the extension
  of  the credit provided for in the contract and no fee, expense or other
  charge whatsoever shall be taken, received, reserved or  contracted  for
  except  as  provided  in  this  section, in subdivision seven of section
  three hundred two and three hundred six and, if expressly  provided  for
  in the retail instalment contract the amount of official fees as defined
  in  section  three  hundred  one  and  the  amount, if any, included for
  insurance pursuant to subdivision five of section three hundred two.
6. Notwithstanding the maximum credit  service  charge  authorized  by
  this  article, such maximum credit service charge shall not apply to any
  retail installment sale insured or guaranteed in whole or in part by the

  Federal Housing Administration,  the  Veterans  Administration,  or  any
  other department or agency of the United States government.