N.Y. Financial Services Law § 704: Student debt consulting contracts

§ 704. Student debt consulting contracts. (a) A student debt

consulting contract shall:

(1) contain the entire agreement of the parties;

(2) be provided in writing to the borrower for review before signing;

(3) be printed in at least twelve-point type and written in the same

language that is used by the borrower and was used in discussions

between the consultant and the borrower to describe the borrower's

services or to negotiate the contract;

(4) fully disclose the exact nature of the services to be provided by

the consultant or anyone working in association with the consultant;

(5) fully disclose the total amount and terms of compensation for such

services;

(6) contain the name, business address and telephone number of the

consultant and the street address, if different, and facsimile number or

email address of the consultant where communications from the debtor may

be delivered;

(7) be dated and personally signed by the borrower and the consultant

and be witnessed and acknowledged by a New York notary public; and

(8) contain the following notice, which shall be printed in at least

fourteen-point boldface type, completed with the name of the Provider,

and located in immediate proximity to the space reserved for the

debtor's signature:

"NOTICE REQUIRED BY NEW YORK LAW

You may cancel this contract, without any penalty or obligation, at any

time before midnight of

.......... (fifth business day after execution).

.......... (Name of consultant) (the "Consultant") or anyone working for

the Consultant may not take any money from you or ask you for money

until the consultant has completely finished doing everything this

Contract says the Consultant will do.

You should consider contacting your student loan servicer before signing

any legal document concerning your student loan. In addition, you may

want to visit the New York State Department of Financial Services'

student lending resource center at www.dfs.ny.gov/studentprotection. The

law requires that this contract contain the entire agreement between you

and the Provider. You should not rely upon any other written or oral

agreement or promise."

The Provider shall accurately enter the date on which the right to

cancel ends.

(b) (1) The borrower has the right to cancel, without any penalty or

obligation, any contract with a consultant until midnight of the fifth

business day following the day on which the consultant and the borrower

sign a consulting contract. Cancellation occurs when the borrower, or a

representative of the borrower, either delivers written notice of

cancellation in person to the address specified in the consulting

contract or sends a written communication by facsimile, by United States

mail or by an established commercial letter delivery service. A dated

proof of facsimile delivery or proof of mailing creates a presumption

that the notice of cancellation has been delivered on the date the

facsimile is sent or the notice is deposited in the mail or with the

delivery service. Cancellation of the contract shall release the

borrower from all obligations to pay fees or any other compensation to

the consultant.

(2) The contract shall be accompanied by two copies of a form,

captioned "notice of cancellation" in at least twelve-point bold type.

This form shall be attached to the contract, shall be easily detachable,

and shall contain the following statement written in the same language

as used in the contract, and the contractor shall insert accurate

information as to the date on which the right to cancel ends and the

contractor's contact information:

"NOTICE OF CANCELLATION

Note: You may cancel this contract, without any penalty or obligation,

at any time before midnight of (Enter date)

To cancel this contract, sign and date both copies of this cancellation

notice and personally deliver one copy or send it by facsimile, United

States mail, or an established commercial letter delivery service,

indicating cancellation to the Consultant at one of the following:

Name of Consultant

Street Address

City, State, Zip

Facsimile:

I hereby cancel this transaction.

Name of Borrower:

Signature of Borrower:

Date: "

(3) Within ten days following receipt of a notice of cancellation

given in accordance with this subsection, the consultant shall return

any original contract and any other documents signed by or provided by

the borrower. Cancellation shall release the borrower of all obligations

to pay any fees or compensation to the consultant.