NY Pers Prop L § 404 (2021)
2021 New York Laws PEP - Personal Property Article 10 - Retail Instalment Sales Act 404 - Credit Service Charge Limitation.

§  404. Credit service charge limitation. 1. A seller may, in a retail   instalment contract or obligation, contract for and,  if  so  contracted   for, the holder thereof may charge, receive and collect a credit service   charge  computed  on the principal balance of the contract or obligation   from the  date  thereof  to  and  including  the  date  when  the  final   instalment is payable, at the rate or rates agreed to by the buyer.2.  Except  as  provided  in  subdivision  three of this section, such   credit service charge shall be computed  on  the  principal  balance  on   contracts  or  obligations  payable  in  successive  monthly instalments   substantially equal in amount for a period of one year. On contracts  or   obligations  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  or  obligation provides for   unequal or irregular instalments, the credit service charge shall be  at   the  effective  rate  provided  for  in subdivision one of this section,   having due regard for the schedule of instalments.4. As an alternative to the credit service charge provided for  above,   a  seller  may,  in a retail instalment contract or obligation, contract   for and, if so contracted  for,  the  holder  may  charge,  receive  and   collect  a  credit  service  charge  calculated  on the unpaid principal   balances of the contract for the time each is 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  or   obligation.  On  any  contract or obligation with a variable rate credit   service charge made pursuant to this subdivision,  each  rate  shall  be   determined  at  regular  intervals  as  set  forth  in  the  contract or   obligation 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 holder, and (d) approved by   the superintendent.The superintendent of financial services shall adopt regulations  with   respect  to retail installment contracts or obligations that provide for   a variable rate of credit service charge, including but not limited  to:   (a)  providing  for  disclosure  to  the  buyer  by  the  holder  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 holder of a history of the fluctuations of the index over a   reasonable  period  of  time;  and (c) providing for notice to the buyer   from the holder 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 or obligation, and for   the extension of the credit provided for in the contract or  obligation,   and no fee, expense or other charge whatsoever shall be taken, received,   reserved or contracted for except as otherwise provided in this article.