NY A07025

Allows creditors and lessors to charge a service fee in addition to the cost of gap insurance when offering gap waivers on vehicle purchases and leases.

Permits service charges to be included in retail installment contract payment calculations and in capitalized lease costs.

Authorizes motor vehicle dealers registered in New York to receive service charge payments for gap waivers on retail installment contracts for new or used motor vehicles.

Caps the service charge for gap waivers on retail installment contracts at $750.

Takes effect 30 days after becoming law.