New York prohibits auto lenders from remotely disabling a vehicle without providing notice

State Issues State Legislation Auto Finance

On October 2, the New York governor signed SB 2484, which prohibits auto lenders from remotely disabling a vehicle without first providing notice of the disabling to the debtor. The act amends the state’s uniform commercial code and the general business law, in significant part, by: (i) defining a “payment assurance device” (“any device installed in a vehicle that can be used to remotely disable the vehicle”); (ii) requiring written notice of the possible remote disabling of a vehicle “in the method and timetable” agreed in the initial contract between the parties; (iii) identifying permissible methods of notice transmittal; and, (iv) specifying the permitted period between the postmarking of the notice and the date on which the auto lender or its agent obtains the right to disable the vehicle. The act takes effect immediately.