2023 New York Laws › PEP - Personal Property › Article 11 - Rental Purchase Agreements › 503 - Total Cost.

§ 503. Total cost. 1. A merchant shall maintain records that establish
the  merchant's cost for each item of merchandise that is the subject of
the rental-purchase agreement. A copy of each rental-purchase  agreement
and  of the records required by this subdivision shall be maintained for
at least two years following the termination of the agreement.
2. The maximum cash price for  the  merchant's  first  rental  of  the
merchandise that is the subject of the rental-purchase agreement may not
exceed  1.75  times  the  merchant's cost for appliances, 1.75 times the
merchant's cost for electronic sets having merchant cost less  than  one
hundred  fifty  dollars,  2.0  times the merchant's costs for electronic
sets having merchant cost greater than or equal  to  one  hundred  fifty
dollars,  2.15  times  the  merchant's cost for furniture, 2.0 times the
merchant's  cost  for  automotive  accessories,  jewelry,  and   musical
instruments, and 1.75 times the merchant's cost for all other items.
3. The maximum total of payments may not exceed 2.25 times the maximum
cash  price  that  could  have  been charged for the first rental of the
merchandise under subdivision two of this section.
4. The maximum  total  of  payments  for  the  merchant's  second  and
subsequent  rental  of  the  merchandise  that  is  the  subject  of the
rental-purchase agreement may not exceed the maximum total  of  payments
permitted under the terming matrix contained in subdivision five of this
section.
5.  (a)  The  terming  matrix  provided  for  in paragraph (b) of this
subdivision shall be used to lower  the  number  of  periodic  payments,
which shall result in a lower total of payments and a lower maximum cash
price  for  the  used merchandise based on its age and condition, or, in
the event that the merchant chooses to maintain the number  of  periodic
payments  of  the  original  term when new, the merchant shall lower the
total of payments and maximum cash price  on  a  pro-rata  basis.    The
merchant  shall  keep  in electronic or hard copy form, the matrix used,
together with a record of the number of periodic  payments  provided  in
the  first agreement for the item when it was offered as new, as well as
a record of the item's condition as determined by the merchant  pursuant
to  such  matrix each time it is priced as used.  This requirement shall
be satisfied by a record of the number of  periodic  payments  and  cash
price  from  each  rental-purchase agreement under which merchandise was
rented. These records shall be maintained as long as the item  is  owned
by  the  merchant.  No  merchant shall price used goods in excess of the
prices dictated by the matrix.
(b) The attorney general shall  make  available  in  printed  form  to
merchants  and publish on the website of the department of law a terming
matrix in chart form to be used by merchants  as  required  pursuant  to
paragraph  (a)  of  this  subdivision. The chart shall have as its title
"Terming Matrix for Used Merchandise". The matrix chart shall conform to
the example set forth in this paragraph and shall consist of  five  rows
and five columns and shall be printed in at least ten point type.
TERMING MATRIX FOR USED MERCHANDISE
 
Original Term                                               91 weeks
in Weeks      34 weeks      35 - 38 weeks  39 - 90 weeks  or more
when New       or less
 
EXCELLENT      subtract a     subtract a     subtract a     subtract a
CONDITION      minimum of 1   minimum of 2   minimum of 3   minimum of
week from      weeks from     weeks from     4 weeks
original       original       original       from ori-
term           term           term           ginal term

GOOD           subtract a     subtract a     subtract a     subtract a
CONDITION      minimum of 3   minimum of 5   minimum of 7   minimum of
weeks from     weeks from     weeks from     9 weeks
original       original       original       from ori-
term           term           term           ginal term
 
FAIR           subtract a     subtract a     subtract a     subtract a
CONDITION      minimum of 4   minimum of 7   minimum of 10  minimum of
weeks from     weeks from     weeks from     13 weeks
original       original       original       from ori-
term           term           term           ginal term
 
POOR           subtract a     subtract a     subtract a     subtract a
CONDITION      minimum of 6   minimum of 10  minimum of 15  minimum of
weeks from     weeks from     weeks from     20 weeks
original       original       original       from ori-
term or cash   term or cash   term or cash   ginal term
sale           sale           sale           or cash
sale
(c) Immediately below the terming matrix, the following language shall
be printed in ten point type.
New = Full Term
Excellent = In great shape. Refurbished to look like new.
Good  =  In  good  working order. Refurbished, but imperfections still
exist.
Fair = Completely operational, but  refurbishment  has  not  concealed
obvious wear and tear.
Poor  =  Ripped,  faded,  cracked  or broken and refurbishment did not
change it.
6. The maximum cash price for merchandise on its second or  subsequent
rental may not exceed the maximum total of payments for that merchandise
as permitted under subdivision five of this section divided by 2.25.
7.  Upon  the written request of the attorney general a merchant shall
provide copies of the records described in this section.
8. If a merchant intentionally discloses a cash price or  a  total  of
payments  that  exceeds  the  amount  permitted  by  this  section,  the
rental-purchase  agreement  is  void,  the  consumer  shall  retain  the
merchandise without any obligation, and the merchant shall refund to the
consumer all amounts paid.