New Bill Impacts Repossessions(Corrected)

January 2, 2019 at 9:07 am Leave a comment

Happy New Year, people. I normally use the first blog of the New Year to outline the trends that will impact the industry in the coming year but with the government shutdown continuing and the last batch of bills having been delivered to the Governor, I have decided to withhold my prescience insights for the time being. I hope you’re not too devastated.

With New York’s two year legislative cycle coming to a close at the end of 2018, the last batch of bills passed by the Legislator and reviewed by the Governor have gotten even more attention than usual. With the caveat that I have not yet gone through all of the final submissions, one bill that will have an important impact on credit unions which make car and motorcycle loans, is S.5369-A by Senator Tedisco. Under existing law, when a vehicle is repossessed the re-possessor must provide the Department of Motor Vehicles with notice of the license number of the repossessed vehicle within 24 hours. The catch is that a car owner generally has ten days to redeem delinquencies owed on the repossessed car. This legislation amends §425 of the Vehicle and Traffic Law to provide that re-possessors now have “within 24 hours of the tenth day after such repossession” to deliver by first-class mail to the nearest motor vehicle office notice of such repossession and the plate numbers of the repossessed vehicle. This amendment does not change the obligation that you currently have to notify the police department that a vehicle has been repossessed. The bill is effective  January 28.

In more good news for anyone who has grappled with New York’s Paid Family Leave Act, Governor Cuomo vetoed legislation which would have added bereavement to the category of circumstances triggering paid family leave. We will have to keep an eye on whether the Legislature and the Governor can come to an agreement on a scaled back proposal in the upcoming legislative session.

How Does the Government Shutdown Affect Your Credit Union? (corrected)

Bowing to Congressional pressure., the white house reversed course on Friday and announced that FEMA did indeed have the authority to issue flood insurance during the shutdown.  An earlier version of today’s blog missed the Government’s backtrack.

As for those of you who have members impacted by the shutdown I’ve seen some credit unions already offering special loans to help people survive the impasse. In addition, in this previously issued letter from NCUA outlines some of the flexible forbearance and modification options that credit unions may consider offering.

One final thought. Unless you think Washington is on the verge of becoming functional, your credit union should take the time to codify the policies and procedures it has in place for dealing with these increasingly common events.

Entry filed under: Compliance, Mortgage Lending, New York State, Regulatory. Tags: , .

Gone Fishing PenFed Gobbles Up Progressive

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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