§ 704 — Student debt consulting contracts

§ 704. Student debt consulting contracts. (a) A student debt\nconsulting contract shall:\n (1) contain the entire agreement of the parties;\n (2) be provided in writing to the borrower for review before signing;\n (3) be printed in at least twelve-point type and written in the same\nlanguage that is used by the borrower and was used in discussions\nbetween the consultant and the borrower to describe the borrower's\nservices or to negotiate the contract;\n (4) fully disclose the exact nature of the services to be provided by\nthe consultant or anyone working in association with the consultant;\n (5) fully disclose the total amount and terms of compensation for such\nservices;\n (6) contain the name, business address and telephone number of the\nconsultant and the street address, if different, and facsimile number or\nemail address of the consultant where communications from the debtor may\nbe delivered;\n (7) be dated and personally signed by the borrower and the consultant\nand be witnessed and acknowledged by a New York notary public; and\n (8) contain the following notice, which shall be printed in at least\nfourteen-point boldface type, completed with the name of the Provider,\nand located in immediate proximity to the space reserved for the\ndebtor's signature:\n"NOTICE REQUIRED BY NEW YORK LAW\nYou may cancel this contract, without any penalty or obligation, at any\ntime before midnight of\n.......... (fifth business day after execution).\n.......... (Name of consultant) (the "Consultant") or anyone working for\nthe Consultant may not take any money from you or ask you for money\nuntil the consultant has completely finished doing everything this\nContract says the Consultant will do.\nYou should consider contacting your student loan servicer before signing\nany legal document concerning your student loan. In addition, you may\nwant to visit the New York State Department of Financial Services'\nstudent lending resource center at www.dfs.ny.gov/studentprotection. The\nlaw requires that this contract contain the entire agreement between you\nand the Provider. You should not rely upon any other written or oral\nagreement or promise."\nThe Provider shall accurately enter the date on which the right to\ncancel ends.\n (b) (1) The borrower has the right to cancel, without any penalty or\nobligation, any contract with a consultant until midnight of the fifth\nbusiness day following the day on which the consultant and the borrower\nsign a consulting contract. Cancellation occurs when the borrower, or a\nrepresentative of the borrower, either delivers written notice of\ncancellation in person to the address specified in the consulting\ncontract or sends a written communication by facsimile, by United States\nmail or by an established commercial letter delivery service. A dated\nproof of facsimile delivery or proof of mailing creates a presumption\nthat the notice of cancellation has been delivered on the date the\nfacsimile is sent or the notice is deposited in the mail or with the\ndelivery service. Cancellation of the contract shall release the\nborrower from all obligations to pay fees or any other compensation to\nthe consultant.\n (2) The contract shall be accompanied by two copies of a form,\ncaptioned "notice of cancellation" in at least twelve-point bold type.\nThis form shall be attached to the contract, shall be easily detachable,\nand shall contain the following statement written in the same language\nas used in the contract, and the contractor shall insert accurate\ninformation as to the date on which the right to cancel ends and the\ncontractor's contact information:\n"NOTICE OF CANCELLATION\nNote: You may cancel this contract, without any penalty or obligation,\nat any time before midnight of (Enter date)\nTo cancel this contract, sign and date both copies of this cancellation\nnotice and personally deliver one copy or send it by facsimile, United\nStates mail, or an established commercial letter delivery service,\nindicating cancellation to the Consultant at one of the following:\nName of Consultant\nStreet Address\nCity, State, Zip\nFacsimile:\nI hereby cancel this transaction.\nName of Borrower:\nSignature of Borrower:\nDate: "\n (3) Within ten days following receipt of a notice of cancellation\ngiven in accordance with this subsection, the consultant shall return\nany original contract and any other documents signed by or provided by\nthe borrower. Cancellation shall release the borrower of all obligations\nto pay any fees or compensation to the consultant.\n