New York Personal Property Law
Interruption or Reduction of Income in Certain Instances
1. If any consumer who has signed a rental-purchase agreement experiences an interruption or reduction of twenty-five percent or more of income due to involuntary job loss, involuntary reduced employment, illness, pregnancy or disability after one-half or more of the total amount of the rental payments necessary to acquire ownership under the agreement has been paid, and such consumer provides to the merchant some evidence of the amount and cause of the interruption or reduction of income, the merchant shall reduce the amount of each rental payment by (a) the percentage of the reduction in the consumers income or (b) fifty percent, whichever is less, for the period during which the consumers income is interrupted or reduced.
2. If payments are reduced, the total dollar amount of payments necessary to acquire ownership shall not be increased, provided, however, that the number of payments necessary to acquire ownership may be increased accordingly and the rights and duties of the merchant and the consumer shall not otherwise be affected.
3. When the consumers income is restored, the merchant may increase the amount of rental payments, but in no event shall rental payments exceed the originally disclosed amount of rental payments.