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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10629
Experience:  30 years of corporate, litigation and international law
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Hello ,I have a question pertaining to finance changes for

Customer Question

Hello ,I have a question pertaining to finance changes for automobile dealers who have in house financing AKA "Buy Here Pay here" . Is it legal in New York state for a small dealer to charge a finance fee or even just a flat fee for financing a car on a retail intstallment contract? I would like exact law sections as an answer .
Submitted: 7 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 7 years ago.
The finance charges are governed by the state usury laws. Do you want to know the maximum interest rate such a dealer can charge in NY State?
Customer: replied 7 years ago.
Hi i would like to know if its legal for a car dealer in NYS to charge interest on a " Buy here pay here contract" without being licensed with the banking autherity? I would also likke to know if its legal to charge a flat fee instead of interest and call it a processing fee? I really need to know where I can print out the laws that spell this out . Thanks
Expert:  Richard - Bizlaw replied 7 years ago.
On the question of interest see General Obligations Law 5-501 and Banking Law Section 14A. licensing as a sales finance company see Banking Law 491 and the statutes referenced in that section. Whether the interest is reflected as a rate of a flat fee it is all considered interest.

Other laws governing auto sales and financing are Laws governing the sale of autos
Truth in Lending Law
Consumer Leasing Act
General Business law 349
Vehicle and Traffic Law 417

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