N.Y. Banking Law § 719: Prohibited practices

§ 719. Prohibited practices. No student loan servicer shall:

1. Employ any scheme, device or artifice to defraud or mislead a

borrower;

2. Engage in any unfair, deceptive or predatory act or practice toward

any person or misrepresent or omit any material information in

connection with the servicing of a student loan, including, but not

limited to, misrepresenting the amount, nature or terms of any fee or

payment due or claimed to be due on a student loan, the terms and

conditions of the loan agreement or the borrower's obligations under the

loan;

3. Misapply payments to the outstanding balance of any student loan or

to any related interest or fees;

4. Provide inaccurate information to a consumer reporting agency;

5. Refuse to communicate with an authorized representative of the

borrower who provides a written authorization signed by the borrower,

provided that the servicer may adopt procedures reasonably related to

verifying that the representative is in fact authorized to act on behalf

of the borrower;

6. Make any false statement or make any omission of a material fact in

connection with any information or reports filed with a governmental

agency or in connection with any investigation conducted by the

superintendent or another governmental agency;

7. Fail to respond within fifteen calendar days to communications from

the department, or within such shorter, reasonable time as the

department may request in his or her communication; or

8. Fail to provide a response within fifteen calendar days to a

consumer complaint submitted to the servicer by the department. If

necessary, a student loan servicer may request additional time up to a

maximum of forty-five calendar days, provided that such request is

accompanied by an explanation why such additional time is reasonable and

necessary.