N.Y. Financial Services Law § 705: Penalties and other provisions

§ 705. Penalties and other provisions. (a) If the superintendent

finds, after notice and hearing, that a consultant has knowingly

violated any provision of this article and the violation was material,

the superintendent may: (1) make null and void any agreement between the

borrower and the consultant; and (2) impose a civil penalty of not more

than ten thousand dollars for each violation.

(b) If the consultant violates any provision of this article and the

borrower suffers damage because of the violation, the borrower may

recover actual and consequential damages and costs from the consultant

in an action based on this article. If the consultant recklessly

violates any provision of this article, the court may award attorneys'

fees and costs. If the consultant intentionally violates any provision

of this article, the court may award treble damages, attorneys' fees and

costs.

(c) Any provision of a student debt consulting contract that attempts

or purports to limit the liability of the consultant under this article

shall be null and void. Inclusion of such provision shall at the option

of the borrower render the contract void. Any provision in a contract

which attempts or purports to require arbitration of any dispute arising

under this article shall be void at the option of the borrower. Any

waiver of the provisions of this article shall be void and unenforceable

as contrary to public policy.

(d) The provisions of this article are not exclusive and are in

addition to any other requirements, rights, remedies, and penalties

provided by law.