2023 New York Laws › FIS - Financial Services Law › Article 7 - Student Debt Consultants › 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.