NY Pers Prop L § 343 (2021)
2021 New York Laws PEP - Personal Property Article 9-A - Motor Vehicle Retail Leasing Act 343 - Assessment of Excess Wear and Damage to the Vehicle.

§  343.  Assessment  of  excess wear and damage to the vehicle. 1. (a) Upon the scheduled termination of a retail lease agreement,  the  holder shall not charge, receive or collect a charge for excess wear and damage to the vehicle which exceeds: (i) the actual cost of repairs, reduced by all  discounts,  paid by the holder; or (ii) a true itemized estimate of the cost of such repairs by an appraiser licensed  pursuant  to  section three  hundred ninety-eight-d of the vehicle and traffic law selected by the holder, of the cost of such repairs.  (b) Upon early termination of a retail  lease  agreement,  the  holder shall not charge, receive or collect a charge for excess wear and damage to the vehicle which exceeds the actual costs of repairs, reduced by all discounts, paid by the holder.   2. In order for a holder to impose a charge for excess wear and damage to  a  vehicle subject to a retail lease agreement, such agreement shall contain a clause describing the excess wear and damage  to  the  vehicle for  which  the  lessee  may be liable. Such holder shall, not more than forty days nor less than twenty days prior to the scheduled  termination date,  or,  not  more  than ten business days after the date of an early termination of a lease agreement, mail or deliver to the lessee a notice advising the lessee of the  following  rights  and  obligations  of  the parties, herein granted and imposed:  (a)  Such  notice  shall include the following statement, as set forth herein, at the beginning of the notice in at least ten-point bold type:           "YOUR LEASE AGREEMENT ALLOWS (HOLDER)  TO  ASSESS  A           CHARGE  FOR  EXCESS  WEAR AND DAMAGE TO THE VEHICLE.           YOU SHOULD OBTAIN YOUR OWN EVIDENCE OF  THE  CURRENT           CONDITION  OF  THE VEHICLE NOT MORE THAN TWENTY (20)           DAYS PRIOR TO  THE  SCHEDULED  TERMINATION  OF  YOUR           LEASE.  YOU  ALSO  WILL  HAVE  THE  RIGHT  TO SUBMIT           DISPUTES  TO  THE  ALTERNATE  ARBITRATION  MECHANISM           ESTABLISHED UNDER REGULATIONS PROMULGATED BY THE NEW           YORK STATE ATTORNEY GENERAL."  (b)  In  the case of a scheduled termination, of the lessee's right to turn the vehicle in with a copy of an itemized appraisal of excess  wear and  damage  to  the  vehicle  prepared  by  an appraiser licensed under section three hundred ninety-eight-d of the  vehicle  and  traffic  law, selected  by the lessee and conducted not more than twenty days prior to the scheduled termination date;  (c) Of the right of the holder to, within thirty days after  the  date on  which  the  vehicle comes into the actual physical possession of the holder, obtain a written itemized appraisal of excessive wear and damage to the vehicle prepared by an appraiser  licensed  under  section  three hundred  ninety-eight-d  of  the vehicle and traffic law selected by the holder;  (d) That if the lessee had not previously obtained  and  submitted  to the  holder  a  written itemized appraisal on the lessee's own behalf in accordance with paragraph (b) of this subdivision, the lessee will  have the  greater  of  ten  business  days  after  the lessee has received or fourteen  business  days  to  do  so  after  the  holder  has  sent,  in conformance with subdivision three of this section, an itemized bill for excess  wear and damage and a copy of the itemized appraisal prepared on behalf of the holder, unless the lessee does  not  dispute  any  of  the items  contained  therein. In the case where the holder bases the charge for excess wear and damage on the actual cost  of  repairs,  the  notice shall  also  inform  the lessee that should the lessee fail to obtain an itemized written appraisal, he  or  she  is  entitled  to  dispute  only whether any items claimed exist and/or are excess wear and damage to the vehicle, but not the actual cost of making the repairs;  (e)  That  if  the  lessee  disputes that any of the items claimed for excess wear and damage to the vehicle exist or are excessive in  nature, the lessee may submit the dispute within sixty days of the date on which the  vehicle  comes into the actual physical possession of the holder to the holder's informal dispute settlement procedure, if any, or, upon the payment  of  the  prescribed  filing  fee  which  is  refundable  if the arbitrator finds in the lessee's favor, to  an  alternative  arbitration mechanism  established  under  regulations  promulgated  by the attorney general of the state of New York;  (f) That if there exists a discrepancy between the itemized appraisals obtained by the holder and the lessee, if any, the holder  shall  submit the  dispute  within  sixty  days of the date on which the vehicle comes into the actual physical  possession  of  the  holder  to  the  holder's informal  dispute  settlement  procedure,  if  any,  unless  the  lessee exercises the option granted by paragraph (b)  of  subdivision  five  of this  section;  provided,  however,  that  in  the  event the holder has complied with the provisions of  this  subdivision,  a  lessee  who  has failed  to obtain an itemized appraisal of the excessive wear and damage to the vehicle in accordance with either paragraph (b) or  (c)  of  this subdivision  may  dispute  only the existence of any item or whether the wear is excessive in nature, but may not  dispute  the  actual  cost  of repairs.   3.  (a)  Itemized  bill.  (i)  In  the event that the holder wishes to impose a charge for excess wear and damage to the  vehicle,  the  holder shall  send  by  registered  mail  or  hand-deliver to the lessee a bill containing an itemized list of the estimated or actual cost of repairing or replacing each item as to which an excess wear and damage  charge  is claimed and specifying the address to which any response must be mailed. The  bill  shall be mailed or hand-delivered to the lessee within thirty days after  the  date  on  which  the  vehicle  comes  into  the  actual possession of the holder.  (ii)  The itemized bill shall include the following statements printed in at least ten-point type: "You  are  being  asked  to  pay  an  amount claimed  for  excess  wear  and  damage  to  the vehicle. If you wish to contest this amount, you must  obtain  an  itemized  appraisal  from  an appraiser  licensed  by the New York State Department of Motor Vehicles, and mail or deliver a copy of such appraisal to  (NAME  AND  ADDRESS  OF HOLDER)  within  the  greater  of  fourteen business days after (NAME OF HOLDER) has sent, or ten business days of receipt of this bill and (NAME OF HOLDER'S) itemized appraisal. If you fail to do so, you will  forfeit your right to contest in arbitration any actual repair costs incurred by the  (HOLDER)  for  excess  wear and damage; however, you do not forfeit your right to contest the existence of any item or whether the  wear  is excessive in nature."  (iii)  The  itemized  bill shall also notify lessees of their material rights and obligations for dispute resolution in arbitration.  (b) Itemized appraisal. (i) A holder who imposes a charge  for  excess wear  and  damage  to  the  vehicle  shall  send  by  registered mail or hand-deliver, within thirty days after the date  on  which  the  vehicle comes  into actual physical possession of the holder, a written itemized appraisal prepared by an appraiser licensed under section three  hundred ninety-eight-d  of  the  vehicle and traffic law. The appraisal shall be dated, signed by the holder or its agent, and identify by type each item of excess wear and damage.  (ii) The following notice shall be included at the  beginning  of  the itemized appraisal prepared on behalf of the holder and furnished to the lessee,            "ALL   ITEMS  OF  DAMAGE  FOR  WHICH  A  CHARGE  FOR           EXCESSIVE WEAR OR DAMAGE  WILL  BE  CLAIMED  BY  THE           HOLDER  MUST  BE  NOTED  IN  THIS  APPRAISAL. IF YOU           DISPUTE THE EXISTENCE  OR  NATURE  OF  ANY  ITEM  OF           DAMAGE IDENTIFIED IN THIS NOTICE, YOU MAY SUBMIT THE           DISPUTE   TO  THE  ALTERNATE  ARBITRATION  MECHANISM           ESTABLISHED UNDER REGULATIONS PROMULGATED BY THE NEW           YORK STATE ATTORNEY GENERAL."   4. (a) The itemized bill and appraisal required by  subdivision  three of   this   section  may  be  combined  into  a  single  document.  Mere acknowledgement by the  lessee  of  receipt  of  an  itemized  bill,  an appraisal, or a combination of the two shall not operate as an admission of the existence, nature or amount of any of the items therein.  (b)  (i)  The holder shall grant the lessee access to the vehicle at a reasonable time and place in order for the lessee to obtain an  itemized appraisal  on the lessee's own behalf. The holder shall not be required, however, to deliver the  vehicle  to,  or  produce  the  vehicle  at,  a destination designated by the lessee for such purpose.  (ii)  A  holder  may  not  fail to provide, either intentionally or by actions or omissions, reasonable access to the vehicle by  the  licensed appraiser  chosen  by the lessee within the period during which a lessee must obtain and submit an appraisal. If the holder fails to  so  provide reasonable  access  to  the  vehicle, the holder shall be deemed to have forfeited its contractual right to charge, receive or collect any charge for excessive wear and damage to the vehicle from the lessee.  (c) A lessor or holder of a retail lease agreement shall not report an unsatisfied claim for excess wear  and  damage  to  a  credit  reporting agency  as a derogatory item of information until: (i) the expiration of the time granted under article seventy-five of the  civil  practice  law and  rules  for  the  filing  of  a  petition  to  vacate  or  modify an arbitrator's award; (ii) the  issue  has  been  a  subject  of  a  final judgment; or (iii) where the holder and the lessee execute a settlement, thirty  days  after the date a payment is due under the settlement if no payment has been made.   5. (a) Arbitration and enforcement. If a  holder  has  established  or participates  in  an  informal  dispute  settlement  procedure  which is consistent in all respects with the provisions  of  part  seven  hundred three  of title sixteen of the code of federal regulations, any dispute, disparity or conflict  between  any  appraisal  report  prepared  by  an appraiser  licensed  by the state department of motor vehicles on behalf of the holder and one prepared on behalf of the lessee shall be  decided by   such  informal  dispute  settlement  procedure.  Holders  utilizing informal dispute settlement  procedures  pursuant  to  this  subdivision shall insure that the arbitrators participating in such informal dispute settlement procedures are familiar with the provisions of this section.  (b) Upon the payment of a prescribed filing fee, a consumer shall have the  option  of  submitting any dispute arising under this section to an alternate arbitration mechanism established pursuant to  regulations  to be  promulgated  hereunder  by the attorney general. Upon application of the consumer and payment of the filing fee, the holder shall  submit  to such   alternate   arbitration.  Such  alternate  arbitration  shall  be conducted by a professional arbitrator or arbitration firm appointed  by and   under  regulations  established  by  the  attorney  general.  Such alternate arbitration mechanism shall ensure the personal objectivity of its arbitrators and the right of each party to present its case,  to  be in  attendance  during  any  presentation made by the other party and to rebut or refute such presentation. In all other respects, such alternate arbitration mechanism shall be governed by article seventy-five  of  the  civil  practice  law  and rules. Holder or lessee shall have thirty days from the date of mailing of a copy of the arbitrator's decision to  such holder or lessee to comply with the terms of such decision.  (c)  In  no event shall any person who has participated in an informal dispute settlement procedure be precluded from  seeking  the  rights  or remedies available to such person under applicable law.  (d)  Nothing  in  this  section  shall  be deemed to prohibit: (i) the holder and the lessee from agreeing upon termination of the agreement to the payment by the lessee, in satisfaction  of  his  or  her  obligation under the provisions of the agreement, of an amount which the lessor and the  lessee agree is a reasonable figure to compensate for damage to the vehicle; (ii) the holder  from  retaining  any  portion  of  a  security deposit  in  satisfaction  of  amounts  owed  to the holder that are not attributable to excess wear and tear; or (iii) to restrict or  otherwise regulate the assessment of charges for excess mileage.