S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4088
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2023
                                ___________
 
 Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
   tee on Banks
 
 AN ACT to amend the banking law and the civil practice law and rules, in
   relation to licensed consumer debt collectors
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Legislative  intent.    The  legislature hereby finds the
 presence  of consumer-related problems with respect to the practices  of
 debt  collection  agencies.  Federal  and  state  laws regulate how debt
 collectors may communicate with debtors and prohibit the use of  certain
 threatening,   deceptive   and   unfair collection   practices.  Despite
 these   legal  protections,  there  continue  to  be  frequent  consumer
 complaints regarding debt collection practices.  Due  to  the  sensitive
 nature  of  the  information used in the course of debt collection agen-
 cies' work, and the vulnerable position consumers may find themselves in
 when dealing with these agencies, it is incumbent upon this  legislature
 to ensure that agencies that engage in unscrupulous or abusive practices
 shall  not  continue to operate in this state. To protect the interests,
 reputations, and financial wellbeing of residents  of  this  state  from
 unwarranted  harm, the legislature hereby declares that the state should
 not permit debt collection agencies to operate without  a  license  from
 the state.
   §  2.  The banking law is amended by adding a new article 7 to read as
 follows:
                                 ARTICLE 7
                     LICENSED CONSUMER DEBT COLLECTORS
 SECTION 295. DEFINITIONS.
         296. DEBT COLLECTION AGENCIES.
         297. SURETY BONDING REQUIREMENT.
         298. PENALTIES.
         299. EXAMINATIONS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03040-02-3
              

 A. 4088                             2
 
         300. APPLICABILITY.
   § 295. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  (A)  "DEBT  COLLECTION AGENCY" SHALL MEAN A PERSON, FIRM OR CORPO-
 RATION ENGAGED IN BUSINESS, THE PRINCIPAL PURPOSE OF WHICH IS  TO  REGU-
 LARLY  COLLECT OR ATTEMPT TO COLLECT DEBTS OWED OR DUE OR ASSERTED TO BE
 OWED OR DUE TO ANOTHER AND SHALL ALSO INCLUDE A BUYER OF DELINQUENT DEBT
 WHO SEEKS TO COLLECT SUCH DEBT EITHER DIRECTLY OR THROUGH  THE  SERVICES
 OF  ANOTHER  BY, INCLUDING BUT NOT LIMITED TO, INITIATING OR USING LEGAL
 PROCESSES OR OTHER MEANS TO COLLECT OR ATTEMPT TO COLLECT SUCH DEBT.
   (B) THE TERM DOES NOT INCLUDE: (I) ANY OFFICER OR EMPLOYEE OF A CREDI-
 TOR WHILE, IN THE NAME OF THE CREDITOR, COLLECTING DEBTS FOR SUCH CREDI-
 TOR;
   (II) ANY OFFICER OR EMPLOYEE OF A DEBT COLLECTION AGENCY;
   (III) ANY PERSON WHILE ACTING AS A DEBT COLLECTION AGENCY FOR  ANOTHER
 PERSON,  BOTH  OF  WHOM ARE RELATED BY COMMON OWNERSHIP OR AFFILIATED BY
 CORPORATE CONTROL, IF THE PERSON ACTING AS A DEBT COLLECTION AGENCY DOES
 SO ONLY FOR PERSONS TO WHOM IT IS SO RELATED OR AFFILIATED  AND  IF  THE
 PRINCIPAL BUSINESS OF SUCH PERSON IS NOT THE COLLECTION OF DEBTS;
   (IV)  ANY PERSON WHILE SERVING OR ATTEMPTING TO SERVE LEGAL PROCESS ON
 ANY OTHER PERSON IN CONNECTION WITH  THE  JUDICIAL  ENFORCEMENT  OF  ANY
 DEBT;
   (V) ANY ATTORNEY-AT-LAW OR LAW FIRM COLLECTING A DEBT IN SUCH CAPACITY
 ON  BEHALF OF AND IN THE NAME OF A CLIENT SOLELY THROUGH ACTIVITIES THAT
 MAY ONLY BE PERFORMED BY A LICENSED ATTORNEY, BUT NOT  ANY  ATTORNEY-AT-
 LAW  OR  LAW  FIRM  OR  PART THEREOF WHO REGULARLY ENGAGES IN ACTIVITIES
 TRADITIONALLY PERFORMED BY DEBT COLLECTORS, INCLUDING, BUT  NOT  LIMITED
 TO,  CONTACTING  A  DEBTOR  THROUGH  THE  MAIL OR VIA TELEPHONE WITH THE
 PURPOSE OF COLLECTING A DEBT OR OTHER ACTIVITIES AS DETERMINED  BY  RULE
 OF THE SUPERINTENDENT;
   (VI)  ANY  PERSON EMPLOYED BY A UTILITY REGULATED UNDER THE PROVISIONS
 OF THE PUBLIC SERVICE LAW, ACTING FOR SUCH UTILITY;
   (VII) ANY PERSON COLLECTING OR ATTEMPTING TO COLLECT ANY DEBT OWED  OR
 DUE  OR  ASSERTED TO BE OWED OR DUE ANOTHER TO THE EXTENT SUCH ACTIVITY:
 (A) IS INCIDENTAL TO A BONA FIDE FIDUCIARY OBLIGATION  OR  A  BONA  FIDE
 ESCROW  AGREEMENT;  (B)  CONCERNS  A  DEBT  WHICH WAS ORIGINATED BY SUCH
 PERSON; OR (C) CONCERNS A DEBT WHICH WAS NOT IN DEFAULT AT THE  TIME  IT
 WAS  OBTAINED  BY  SUCH PERSON AS A SECURED PARTY IN A COMMERCIAL CREDIT
 TRANSACTION INVOLVING THE CREDITOR;
   (VIII) ANY OFFICER OR EMPLOYEE OF THE UNITED STATES, ANY STATE THEREOF
 OR ANY POLITICAL SUBDIVISION OF ANY STATE TO THE EXTENT THAT  COLLECTING
 OR  ATTEMPTING  TO COLLECT ANY DEBT OWED IS IN THE PERFORMANCE OF HIS OR
 HER OFFICIAL DUTIES;
   (IX) ANY NON-PROFIT ORGANIZATION WHICH, AT THE REQUEST  OF  CONSUMERS,
 PERFORMS  BONA  FIDE CONSUMER CREDIT COUNSELING AND ASSISTS CUSTOMERS IN
 THE LIQUIDATION OF THEIR DEBTS BY RECEIVING PAYMENTS FROM SUCH CUSTOMERS
 AND DISTRIBUTING SUCH AMOUNTS TO CREDITORS; OR
   (X) ANY PERSON, FIRM OR CORPORATION ENGAGED IN BUSINESS, THE PRINCIPAL
 PURPOSE OF WHICH IS TO REGULARLY COLLECT OR  ATTEMPT  TO  COLLECT  DEBTS
 OWED  OR  DUE  OR ASSERTED TO BE OWED OR DUE TO ANOTHER PERSON WHERE THE
 DEBT IS ENFORCED FOR CHILD  SUPPORT,  SPOUSAL  SUPPORT,  MAINTENANCE  OR
 ALIMONY,  PROVIDED,  HOWEVER,  THAT  IF SUCH PERSON, FIRM OR CORPORATION
 ALSO REGULARLY COLLECTS OR ATTEMPTS TO COLLECT DEBTS  OTHER  THAN  THOSE
 ENFORCED  FOR  CHILD  SUPPORT,  SPOUSAL SUPPORT, MAINTENANCE OR ALIMONY,
 SUCH PERSON MUST COMPLY WITH THE REQUIREMENTS OF THIS ARTICLE.
 A. 4088                             3
 
   2. "CONSUMER" MEANS ANY NATURAL PERSON OBLIGATED  OR  ALLEGEDLY  OBLI-
 GATED TO PAY ANY DEBT.
   3.  "DEBT" MEANS ANY OBLIGATION OR ALLEGED OBLIGATION OF A CONSUMER TO
 PAY MONEY ARISING OUT OF A TRANSACTION IN  WHICH  THE  MONEY,  PROPERTY,
 INSURANCE,  OR  SERVICES  WHICH  ARE  THE SUBJECT OF THE TRANSACTION ARE
 PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES,  WHETHER  OR  NOT
 SUCH OBLIGATION HAS BEEN REDUCED TO JUDGMENT.
   §  296.  DEBT COLLECTION AGENCIES. 1. ON OR AFTER MAY FIRST, TWO THOU-
 SAND TWENTY-FOUR, NO PERSON SHALL ACT AS A DEBT COLLECTION AGENCY  WITH-
 OUT FIRST HAVING OBTAINED A LICENSE IN ACCORDANCE WITH THE PROVISIONS OF
 THIS  ARTICLE,  AND  WITHOUT  FIRST  BEING  IN COMPLIANCE WITH ALL OTHER
 APPLICABLE LAWS, RULES AND REGULATIONS.
   2. (A) ALL LICENSES ISSUED PURSUANT TO THIS ARTICLE SHALL BE VALID FOR
 ONE YEAR UNLESS SOONER SUSPENDED OR REVOKED.  THE  SUPERINTENDENT  SHALL
 ESTABLISH BY REGULATION THE EXPIRATION DATE OF SUCH LICENSES.
   (B)  THE  FEE  FOR A LICENSE OR RENEWAL THEREOF SHALL BE AS PRESCRIBED
 PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER.
   3. (A) EACH PERSON APPLYING FOR A DEBT COLLECTION  AGENCY  LICENSE  OR
 RENEWAL THEREOF SHALL FILE AN APPLICATION IN SUCH FORM AND DETAIL AS THE
 SUPERINTENDENT  MAY  PRESCRIBE  AND  SHALL  PAY THE FEE REQUIRED BY THIS
 SECTION.
   (B) IN ADDITION TO ANY OTHER INFORMATION REQUIRED, THE  SUPERINTENDENT
 SHALL  REQUIRE,  BUT  NOT  BE LIMITED TO, THE FOLLOWING INFORMATION, AND
 SHALL, AS APPROPRIATE, REQUIRE SUCH INFORMATION NOT ONLY OF  THE  APPLI-
 CANT  BUT  ALSO  OF ANY OF ITS PRINCIPALS, PARTNERS, OFFICERS AND DIREC-
 TORS, OR ANY PERSON OR ENTITY CONTROLLING AN INTEREST GREATER  THAN  TEN
 PERCENT:
   (I) THE NAME AND RESIDENCE ADDRESS OF THE APPLICANT;
   (II) THE BUSINESS NAME, IF OTHER THAN APPLICANT;
   (III)  THE PLACE, INCLUDING THE CITY, TOWN OR VILLAGE, WITH THE STREET
 AND NUMBER, WHERE THE BUSINESS IS TO BE LOCATED;
   (IV) THE BUSINESS TELEPHONE OF THE APPLICANT;
   (V) THE LENGTH OF TIME THAT THE APPLICANT HAS BEEN A  DEBT  COLLECTION
 AGENCY;
   (VI) A STATEMENT INDICATING WHETHER THE APPLICANT HAS:
   (A)  BEEN  CONVICTED  OF  ANY CRIME OR IS A DEBTOR ON ANY UNPAID CIVIL
 JUDGMENT RELATING TO WORK AS A DEBT COLLECTION AGENCY; AND
   (B) AT ANY TIME IN THE PAST BEEN ISSUED A  LICENSE  PURSUANT  TO  THIS
 ARTICLE,  OR HAS BEEN ISSUED A LICENSE FOR DEBT COLLECTION ACTIVITIES BY
 ANY OTHER STATE OR LOCAL AUTHORITY, AND IF SO, WHETHER SUCH LICENSE  WAS
 EVER REVOKED OR SUSPENDED;
   (VII)  A  DETAILED  DESCRIPTION  OF  THE BUSINESS PRACTICES OR METHODS
 USED, OR INTENDED TO BE USED, BY THE APPLICANT TO CONFIRM  THE  VALIDITY
 OF THE DEBTS IT SEEKS TO COLLECT FROM CONSUMERS;
   (VIII)  A SUMMARY OF THE APPLICANT'S RECORD-KEEPING POLICY, INCLUDING,
 BUT NOT LIMITED TO:
   (A) THE LENGTH OF TIME THE APPLICANT MAINTAINS, OR  INTENDS  TO  MAIN-
 TAIN, RECORDS PERTAINING TO CONSUMERS; AND
   (B)  THE  MANNER IN WHICH THE APPLICANT RECORDS AND STORES, OR INTENDS
 TO RECORD AND STORE: CONSUMER CHALLENGES TO THE VALIDITY OF DEBT;  BILL-
 ING ERRORS; PAYMENTS MADE BY A CONSUMER; SETTLEMENT AGREEMENTS; INFORMA-
 TION  REGARDING  PARTIES  RESPONSIBLE FOR DEBT; ANY STATEMENTS MADE BY A
 CONSUMER ALLEGING THAT THE DEBT  AROSE  FROM  IDENTITY  THEFT;  AND  ANY
 STATEMENTS  MADE BY A CONSUMER STATING THAT THE CONSUMER RECEIVED STATU-
 TORILY EXEMPT INCOME AS DEFINED IN SECTION FIFTY-TWO HUNDRED  TWENTY-TWO
 OF THE CIVIL PRACTICE LAW AND RULES;
 A. 4088                             4
 
   (IX) WHETHER THE APPLICANT REGULARLY SELLS, OR INTENDS TO SELL, DEBTS.
 IF  THE  APPLICANT SELLS, OR INTENDS TO SELL DEBTS, SUCH APPLICANT SHALL
 BE REQUIRED TO PROVIDE THE SUPERINTENDENT WITH A SUMMARY OF  THE  APPLI-
 CANT'S  POLICY  WITH  RESPECT  TO THE INFORMATION REGARDING A CONSUMER'S
 ACCOUNT THAT IT TRANSMITS, OR WILL TRANSMIT, TO THE PURCHASER OF A DEBT;
 AND
   (X)  A SWORN STATEMENT BY THE APPLICANT THAT THE INFORMATION SET FORTH
 IN THE APPLICATION IS CURRENT AND ACCURATE.
   (C) AN APPLICANT WHO IS A NON-RESIDENT OF THE STATE SHALL PROVIDE  THE
 NAME AND ADDRESS OF A REGISTERED AGENT WITHIN THE STATE OR DESIGNATE THE
 SUPERINTENDENT  AS HIS OR HER AGENT UPON WHOM PROCESS OR OTHER NOTIFICA-
 TION MAY BE SERVED.
   4. IN DETERMINING WHETHER TO ISSUE, RENEW OR SUSPEND  A  LICENSE,  THE
 SUPERINTENDENT SHALL CONSIDER THE CHARACTER, COMPETENCY AND INTEGRITY OF
 THE APPLICANT. THE SUPERINTENDENT MAY REFUSE TO ISSUE OR RENEW A LICENSE
 TO  ANY  PERSON,  FIRM OR CORPORATION WHOM HE OR SHE FINDS HAS: (A) BEEN
 CONVICTED OF ANY CRIME DEFINED IN ARTICLE ONE HUNDRED FIFTY-FIVE OF  THE
 PENAL  LAW OR ARTICLE TWENTY-TWO-A OF THE GENERAL BUSINESS LAW OR FAILED
 TO PAY ANY FINAL CIVIL JUDGMENT RELATING TO WORK AS  A  DEBT  COLLECTION
 AGENCY,  IF  SUCH  REFUSAL,  IN THE JUDGMENT OF THE SUPERINTENDENT, BEST
 PROMOTES THE INTERESTS OF THE PEOPLE OF THIS STATE; OR
   (B) VIOLATED ARTICLE TWENTY-NINE-H OF THE GENERAL  BUSINESS  LAW,  THE
 FEDERAL  FAIR  DEBT COLLECTION PRACTICES ACT (15 USC § 1692 ET SEQ.), OR
 ANY PROVISION OF THIS ARTICLE.
   ALL DETERMINATIONS BY THE SUPERINTENDENT TO ISSUE OR RENEW  A  LICENSE
 SHALL  BE  MADE  IN  ACCORDANCE  WITH SUBDIVISION SIXTEEN OF SECTION TWO
 HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND  ARTICLE  TWENTY-THREE-A  OF
 THE CORRECTION LAW.
   5.  NOTICE IN WRITING IN THE MANNER AND FORM PRESCRIBED BY THE DEPART-
 MENT SHALL BE GIVEN TO THE DEPARTMENT AT ITS OFFICES  IN  ALBANY  WITHIN
 TEN DAYS OF CHANGES OF NAME OR ADDRESS BY LICENSED DEBT COLLECTION AGEN-
 CIES.  THE FEE FOR FILING EACH CHANGE OF NAME OR ADDRESS NOTICE SHALL BE
 DETERMINED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER.
   6. THE FEES ESTABLISHED BY THIS SECTION SHALL NOT BE REFUNDABLE.
   7.  EACH  DEBT  COLLECTION  AGENCY  ENGAGED  IN COLLECTING DEBTS SHALL
 COMMUNICATE HIS OR HER LICENSE NUMBER UPON THE REQUEST OF ANY INTERESTED
 PARTY. ANY ADVERTISEMENT, LETTERHEAD, RECEIPT OR OTHER PRINTED MATTER OF
 A LICENSEE MUST CONTAIN THE LICENSE NUMBER ASSIGNED TO THE  LICENSEE  BY
 THE  DEPARTMENT.  SUCH LICENSE NUMBER SHALL BE CLEARLY AND CONSPICUOUSLY
 DISPLAYED.
   8. NO PERSON, FIRM OR CORPORATION SHALL: (A) PRESENT,  OR  ATTEMPT  TO
 PRESENT, AS HIS, HER OR ITS OWN, THE LICENSE NUMBER OF ANOTHER;
   (B)  KNOWINGLY GIVE FALSE EVIDENCE OF A MATERIAL NATURE TO THE DEPART-
 MENT FOR THE PURPOSE OF PROCURING A LICENSE;
   (C) FALSELY REPRESENT THEMSELVES TO  BE  A  LICENSED  DEBT  COLLECTION
 AGENCY;
   (D) USE OR ATTEMPT TO USE A LICENSE WHICH HAS EXPIRED;
   (E) OFFER TO PERFORM OR PERFORM ANY COLLECTION OF DEBTS WITHOUT HAVING
 A CURRENT LICENSE AS IS REQUIRED UNDER THIS ARTICLE; OR
   (F)  REPRESENT  IN ANY MANNER THAT HIS, HER OR ITS LICENSE CONSTITUTES
 AN ENDORSEMENT OF THE QUALITY OF WORKMANSHIP OR COMPETENCY OF  THE  DEBT
 COLLECTION AGENCY.
   9. LICENSES ISSUED TO DEBT COLLECTION AGENCIES SHALL NOT BE TRANSFERA-
 BLE OR ASSIGNABLE.
   10.  THE  SUPERINTENDENT  SHALL  ISSUE  EACH  DEBT COLLECTION AGENCY A
 UNIQUE LICENSE NUMBER.
 A. 4088                             5
 
   11. THE DEPARTMENT SHALL  MAINTAIN  AND  PUBLISH  A  REGISTRY  OF  ALL
 LICENSED  DEBT  COLLECTION  AGENCIES, WHICH SHALL LIST AND IDENTIFY, ALL
 LICENSED DEBT COLLECTION AGENCIES DOING  BUSINESS  IN  THIS  STATE.  THE
 DEPARTMENT SHALL MAKE THE REGISTRY AVAILABLE ON ITS WEBSITE.
   12.  (A)  THE SUPERINTENDENT SHALL ADOPT SUCH RULES AND REGULATIONS AS
 HE OR SHE  MAY  DETERMINE  ARE  NECESSARY  FOR  THE  ADMINISTRATION  AND
 ENFORCEMENT  OF  THIS ARTICLE, AND SHALL PROVIDE WRITTEN NOTIFICATION OF
 THE PROVISIONS OF THIS ARTICLE TO ALL DEBT COLLECTION AGENCIES  LICENSED
 PURSUANT TO THIS ARTICLE.
   (B)  IN  ADDITION  TO  ANY  OTHER POWERS OF THE SUPERINTENDENT, NOT IN
 LIMITATION THEREOF, HE OR SHE  SHALL  HAVE  THE  POWER  TO  ENFORCE  THE
 PROVISIONS  OF  THIS  ARTICLE,  TO INVESTIGATE ANY VIOLATION THEREOF, TO
 INVESTIGATE THE BUSINESS, BUSINESS PRACTICES AND BUSINESS METHODS OF ANY
 DEBT COLLECTION AGENCY, AND  TO  CONDUCT  ROUTINE  EXAMINATIONS  OF  THE
 FINANCIAL  SOLVENCY  OF ANY DEBT COLLECTION AGENCY, IF IN THE OPINION OF
 THE SUPERINTENDENT, SUCH INVESTIGATION OR EXAMINATION IS WARRANTED. EACH
 DEBT COLLECTION AGENCY SHALL BE OBLIGED, ON REQUEST OF  THE  SUPERINTEN-
 DENT,  TO  SUPPLY  SUCH  INFORMATION, BOOKS, PAPERS OR RECORDS AS MAY BE
 REQUIRED CONCERNING HIS, HER OR  ITS  BUSINESS,  BUSINESS  PRACTICES  OR
 BUSINESS  METHODS, OR PROPOSED BUSINESS PRACTICES OR METHODS. FAILURE TO
 COMPLY WITH A LAWFUL REQUEST OF THE SUPERINTENDENT SHALL BE A GROUND FOR
 DENYING AN APPLICATION FOR A LICENSE, OR FOR  REVOKING,  SUSPENDING,  OR
 FAILING TO RENEW A LICENSE  ISSUED UNDER THIS ARTICLE.
   (C)  THE  SUPERINTENDENT SHALL HAVE THE POWER TO REVOKE OR SUSPEND ANY
 LICENSE, OR IN LIEU THEREOF TO IMPOSE A FINE NOT LESS THAN  ONE  HUNDRED
 DOLLARS  NOR  MORE  THAN TWO THOUSAND DOLLARS PER VIOLATION OR INSTANCE,
 PAYABLE TO THE DEPARTMENT, OR REPRIMAND ANY LICENSEE OR DENY AN APPLICA-
 TION FOR A LICENSE OR RENEWAL THEREOF UPON PROOF:
   (I) THAT THE APPLICANT OR LICENSEE HAS VIOLATED ANY OF THE  PROVISIONS
 OF  THIS  ARTICLE  OR  THE RULES AND REGULATIONS PROMULGATED PURSUANT TO
 THIS ARTICLE;
   (II) THAT THE APPLICANT OR LICENSEE HAS  PRACTICED  FRAUD,  DECEIT  OR
 MISREPRESENTATION;
   (III)  THAT THE APPLICANT OR LICENSEE HAS MADE A MATERIAL MISSTATEMENT
 IN THE APPLICATION FOR OR RENEWAL OF HIS OR HER LICENSE; OR
   (IV) THAT THE APPLICANT OR LICENSEE HAS DEMONSTRATED  INCOMPETENCE  OR
 UNTRUSTWORTHINESS IN HIS OR HER ACTIONS.
   13.  THE  DEPARTMENT SHALL BEFORE DENYING AN APPLICATION FOR A LICENSE
 OR BEFORE REVOKING OR SUSPENDING ANY LICENSE, OR IMPOSING  ANY  FINE  OR
 REPRIMAND, AND AT LEAST FIFTEEN DAYS PRIOR TO THE DATE SET FOR THE HEAR-
 ING, AND UPON DUE NOTICE TO THE COMPLAINANT OR OBJECTOR, NOTIFY IN WRIT-
 ING THE APPLICANT, OR THE HOLDER OF SUCH LICENSE, OF ANY CHARGE MADE AND
 SHALL  AFFORD  SUCH  APPLICANT OR LICENSEE AN OPPORTUNITY TO BE HEARD IN
 PERSON OR BY COUNSEL IN REFERENCE THERETO. SUCH WRITTEN  NOTICE  MAY  BE
 SERVED  PERSONALLY TO THE APPLICANT OR LICENSEE, OR BY CERTIFIED MAIL TO
 THE LAST KNOWN BUSINESS ADDRESS OF SUCH APPLICANT OR LICENSEE.
   14. THE HEARING ON SUCH CHARGES SHALL BE AT SUCH TIME AND PLACE AS THE
 DEPARTMENT SHALL PRESCRIBE AND SHALL BE CONDUCTED  BY  SUCH  OFFICER  OR
 PERSON  IN THE DEPARTMENT AS THE SUPERINTENDENT MAY DESIGNATE, WHO SHALL
 HAVE THE POWER TO SUBPOENA AND BRING BEFORE THE OFFICER,  OR  PERSON  SO
 DESIGNATED,  ANY PERSON IN THIS STATE AND ADMINISTER AN OATH TO AND TAKE
 TESTIMONY OF ANY PERSON OR CAUSE HIS OR HER DEPOSITION TO  BE  TAKEN.  A
 SUBPOENA ISSUED UNDER THIS SECTION SHALL BE REGULATED BY THE CIVIL PRAC-
 TICE  LAW AND RULES. SUCH OFFICER OR PERSON IN THE DEPARTMENT DESIGNATED
 TO TAKE SUCH TESTIMONY SHALL NOT BE BOUND BY  COMMON  LAW  OR  STATUTORY
 RULES OF EVIDENCE OR BY TECHNICAL OR FORMAL RULES OF PROCEDURE.
 A. 4088                             6
 
   15.  IN  THE EVENT THAT THE DEPARTMENT SHALL DENY THE APPLICATION FOR,
 OR REVOKE OR SUSPEND ANY SUCH LICENSE, OR IMPOSE ANY FINE OR  REPRIMAND,
 ITS  DETERMINATION  SHALL  BE  IN  WRITING  AND  OFFICIALLY  SIGNED. THE
 ORIGINAL OF SUCH DETERMINATIONS, WHEN SO SIGNED, SHALL BE FILED  IN  THE
 OFFICE  OF  THE  DEPARTMENT  AND  COPIES  THEREOF SHALL BE MAILED TO THE
 APPLICANT OR LICENSEE AND TO THE COMPLAINANT WITHIN TWO DAYS AFTER  SUCH
 FILING.
   16.  THE  DEPARTMENT,  ACTING  BY  THE  OFFICE OR PERSON DESIGNATED TO
 CONDUCT THE HEARING PURSUANT TO SUBDIVISION THIRTEEN OF THIS SECTION  OR
 BY  SUCH OTHER OFFICER OR PERSON IN THE DEPARTMENT AS THE SUPERINTENDENT
 MAY DESIGNATE, SHALL HAVE THE POWER TO SUSPEND THE LICENSE OF ANY LICEN-
 SEE WHO HAS BEEN CONVICTED IN THIS STATE OR ANY OTHER STATE OR TERRITORY
 OF A FELONY OR OF ANY MISDEMEANOR FOR A PERIOD NOT EXCEEDING THIRTY DAYS
 PENDING A HEARING AND A DETERMINATION OF CHARGES  MADE  AGAINST  HIM  OR
 HER.  IF SUCH HEARING IS ADJOURNED AT THE REQUEST OF THE LICENSEE, OR BY
 REASON OF ANY ACT OR OMISSION BY HIM OR HER OR ON  HIS  OR  HER  BEHALF,
 SUCH  SUSPENSION  MAY  BE  CONTINUED  FOR  THE ADDITIONAL PERIOD OF SUCH
 ADJOURNMENT.
   17. THE ACTION OF THE DEPARTMENT IN GRANTING OR REFUSING TO  GRANT  OR
 TO  RENEW  A  LICENSE UNDER THIS ARTICLE OR IN REVOKING OR SUSPENDING OR
 REFUSING TO REVOKE OR SUSPEND SUCH A LICENSE OR  IMPOSING  ANY  FINE  OR
 REPRIMAND  SHALL  BE  SUBJECT TO REVIEW BY A PROCEEDING INSTITUTED UNDER
 ARTICLE SEVENTY-EIGHT OF  THE  CIVIL  PRACTICE  LAW  AND  RULES  AT  THE
 INSTANCE  OF  THE APPLICANT FOR SUCH LICENSE, THE HOLDER OF A LICENSE SO
 REVOKED, SUSPENDED, FINED OR REPRIMANDED.
   18. FOR THE PURPOSE OF THIS ARTICLE, LICENSEES MAY BE HELD RESPONSIBLE
 FOR STATEMENTS, REPRESENTATIONS, PROMISES OR ACTS OF THEIR EMPLOYEES  OR
 THEIR  AGENTS  WITHIN  THE  SCOPE OF THEIR AUTHORITY; PROVIDED, HOWEVER,
 THAT LICENSEES SHALL NOT BE HELD RESPONSIBLE FOR STATEMENTS, REPRESENTA-
 TIONS, PROMISES OR ACTS WHICH ARE  CONTRARY  TO  INSTRUCTIONS  OR  WHICH
 CONSTITUTE  GROSS  NEGLIGENCE  OR  INTENTIONAL TORTS UNLESS SPECIFICALLY
 AUTHORIZED BY THE LICENSEE.
   19. (A) ANY PERSON, FIRM  OR  CORPORATION  THAT  OPERATES  AS  A  DEBT
 COLLECTION  AGENCY  WITHOUT  A  LICENSE SHALL BE REQUIRED TO PAY A CIVIL
 PENALTY TO THE DEPARTMENT OF NOT MORE  THAN  FIVE  HUNDRED  DOLLARS  PER
 ATTEMPT TO COLLECT A DEBT IN VIOLATION OF THIS SECTION.
   (B)  IN  ADDITION TO ANY OTHER PENALTIES, IF A PERSON IS FOUND TO HAVE
 COMMITTED REPEATED, MULTIPLE OR PERSISTENT VIOLATIONS OF  ANY  PROVISION
 OF  THIS  ARTICLE,  SUCH  PERSON  MAY BE RESPONSIBLE FOR THE COST OF THE
 DEPARTMENT'S INVESTIGATION.
   § 297. SURETY BONDING REQUIREMENT. 1. AS A CONDITION  OF  OBTAINING  A
 LICENSE PURSUANT TO THIS ARTICLE, EVERY DEBT COLLECTION AGENCY APPLICANT
 WHO  IS APPLYING FOR A LICENSE AND EMPLOYS BETWEEN ONE AND FOUR INDIVID-
 UALS ENGAGED IN THE COLLECTION OF DEBTS SHALL  OBTAIN  AND  CONTINUE  IN
 FULL  FORCE  AND  EFFECT  A  BOND, CONTRACT OF INDEMNITY, OR IRREVOCABLE
 LETTER OF CREDIT IN THE AMOUNT OF TWENTY-FIVE  THOUSAND  DOLLARS  TO  BE
 FILED WITH THE SUPERINTENDENT.
   2.  AS  A  CONDITION  TO OBTAINING A LICENSE PURSUANT TO THIS ARTICLE,
 EVERY DEBT COLLECTION AGENCY APPLICANT WHO IS APPLYING FOR A LICENSE AND
 EMPLOYS BETWEEN FIVE AND NINE INDIVIDUALS ENGAGED IN THE  COLLECTION  OF
 DEBTS  SHALL  OBTAIN  AND  CONTINUE  IN  FULL  FORCE  AND EFFECT A BOND,
 CONTRACT OF INDEMNITY, OR IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT  OF
 TWENTY-SEVEN  THOUSAND  FIVE HUNDRED DOLLARS TO BE FILED WITH THE SUPER-
 INTENDENT.
   3. AS A CONDITION TO OBTAINING A LICENSE  PURSUANT  TO  THIS  ARTICLE,
 EVERY DEBT COLLECTION AGENCY APPLICANT WHO IS APPLYING FOR A LICENSE AND
 A. 4088                             7
 
 EMPLOYS  BETWEEN TEN AND TWENTY INDIVIDUALS ENGAGED IN THE COLLECTION OF
 DEBTS SHALL OBTAIN AND  CONTINUE  IN  FULL  FORCE  AND  EFFECT  A  BOND,
 CONTRACT  OF INDEMNITY, OR IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT OF
 FIFTY-SIX  THOUSAND TWO HUNDRED DOLLARS TO BE FILED WITH THE SUPERINTEN-
 DENT.
   4. AS A CONDITION TO OBTAINING A LICENSE  PURSUANT  TO  THIS  ARTICLE,
 EVERY DEBT COLLECTION AGENCY APPLICANT WHO IS APPLYING FOR A LICENSE AND
 EMPLOYS  TWENTY  OR  MORE INDIVIDUALS ENGAGED IN THE COLLECTION OF DEBTS
 SHALL OBTAIN AND CONTINUE IN FULL FORCE AND EFFECT A BOND,  CONTRACT  OF
 INDEMNITY,  OR  IRREVOCABLE  LETTER OF CREDIT, IN THE AMOUNT OF SEVENTY-
 FIVE THOUSAND DOLLARS TO BE FILED WITH THE SUPERINTENDENT.
   5. SUCH SURETY BOND, CONTRACT OF INDEMNITY, OR IRREVOCABLE  LETTER  OF
 CREDIT  SHALL  BE  CONDITIONED  THAT THE APPLICANT WILL COMPLY WITH THIS
 ARTICLE, ARTICLE TWENTY-NINE-H, AND ARTICLE TWENTY-NINE-HH OF THE GENER-
 AL BUSINESS LAW AND PAY ALL CIVIL PENALTIES, FINES, OR OTHER OBLIGATIONS
 IMPOSED BY THE SUPERINTENDENT OR A COURT  OF  LAW,  INVESTIGATORY  COSTS
 REQUIRED TO BE PAID, OR ANY FINAL JUDGMENT AGAINST THE LICENSEE PURSUANT
 TO SUCH ARTICLES.
   6.  THE  TOTAL LIABILITY IMPOSED ON THE SURETY BOND UNDER THIS SECTION
 FOR ALL BREACHES OF THE BOND CONDITION IS LIMITED TO THE FACE AMOUNT  OF
 THE  BOND.  SUCH  LIABILITY  IS  LIMITED TO THE AMOUNT OF THE PENALTY OR
 INVESTIGATORY COSTS. IN NO EVENT WILL THE SURETY ON A BOND BE LIABLE FOR
 TOTAL CLAIMS IN EXCESS OF THE BOND AMOUNT, REGARDLESS OF THE  NUMBER  OR
 NATURE  OF  CLAIMS MADE AGAINST THE BOND OR THE NUMBER OF YEARS THE BOND
 REMAINED IN FORCE.
   7. ANY SURETY ISSUING A BOND PURSUANT TO THIS SECTION AND ANY LICENSEE
 SHALL BE REQUIRED TO PROVIDE THIRTY DAYS NOTICE  TO  THE  SUPERINTENDENT
 PRIOR  TO THE EFFECTIVE DATE OF CANCELLATION OF THE BOND. THE FAILURE TO
 MAINTAIN SUCH A BOND SHALL OPERATE TO REVOKE THE  LICENSE  OF  THE  DEBT
 COLLECTION AGENCY UPON NOTICE AND HEARING.
   §  298.  PENALTIES.  1.    WHEREVER THERE SHALL BE A VIOLATION OF THIS
 ARTICLE, AN APPLICATION MAY BE MADE BY THE ATTORNEY GENERAL IN THE  NAME
 OF  THE  PEOPLE  OF  THE  STATE OF NEW YORK TO A COURT OR JUSTICE HAVING
 JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN  INJUNCTION,  AND  UPON
 NOTICE  TO  THE  DEFENDANT  OF  NOT  LESS  THAN  FIVE DAYS, TO ENJOIN OR
 RESTRAIN THE CONTINUANCE OF SUCH VIOLATION; AND IF IT  SHALL  APPEAR  TO
 THE  SATISFACTION  OF  THE  COURT  OR JUSTICE THAT THE DEFENDANT HAS, IN
 FACT, VIOLATED THIS SECTION, AN INJUNCTION MAY BE ISSUED BY  SUCH  COURT
 OR  JUSTICE,  ENJOINING  AND  RESTRAINING ANY FURTHER VIOLATION, WITHOUT
 REQUIRING PROOF THAT ANY PERSON HAS, IN FACT, BEEN  INJURED  OR  DAMAGED
 THEREBY.  IN  ANY  SUCH PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO THE
 ATTORNEY GENERAL AS PROVIDED IN PARAGRAPH  SIX  OF  SUBDIVISION  (A)  OF
 SECTION  EIGHTY-THREE HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES,
 AND DIRECT RESTITUTION.  WHENEVER  THE  COURT  SHALL  DETERMINE  THAT  A
 VIOLATION  OF  THIS  SECTION  HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL
 PENALTY OF NOT LESS THAN ONE HUNDRED DOLLARS NOR MORE THAN TEN  THOUSAND
 DOLLARS  FOR EACH VIOLATION. IN CONNECTION WITH ANY SUCH PROPOSED APPLI-
 CATION, THE ATTORNEY GENERAL IS AUTHORIZED TO  TAKE  PROOF  AND  MAKE  A
 DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE
 WITH THE CIVIL PRACTICE LAW AND RULES.
   2. ANY PERSON WHO HAS BEEN THE SUBJECT OF AN ATTEMPT TO COLLECT A DEBT
 BY  A DEBT COLLECTION AGENCY THAT IS NOT LICENSED PURSUANT TO THIS ARTI-
 CLE MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN  SUCH  UNLAWFUL
 ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES OR THREE
 THOUSAND  FIVE  HUNDRED  DOLLARS,  WHICHEVER  IS  GREATER,  OR BOTH SUCH
 ACTIONS. THE COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES
 A. 4088                             8
 
 TO AN AMOUNT NOT TO EXCEED THREE TIMES THE  ACTUAL  DAMAGES  UP  TO  TEN
 THOUSAND  DOLLARS,  IF  THE COURT FINDS THE DEFENDANT WILLFULLY VIOLATED
 THIS ARTICLE. IN THE CASE OF ANY SUCCESSFUL ACTION TO ENFORCE THE  FORE-
 GOING  LIABILITY,  THE  COURT MAY AWARD THE COSTS OF THE ACTION TOGETHER
 WITH REASONABLE ATTORNEY'S FEES.
   § 299. EXAMINATIONS. 1. EACH LICENSED  DEBT  COLLECTION  AGENCY  SHALL
 KEEP  AND  USE IN ITS BUSINESS SUCH BOOKS, ACCOUNTS, AND RECORDS AS WILL
 ENABLE THE SUPERINTENDENT TO DETERMINE WHETHER SUCH LICENSEE IS  COMPLY-
 ING  WITH  THE  PROVISIONS  OF THIS ARTICLE AND WITH THE RULES AND REGU-
 LATIONS PROMULGATED HEREUNDER. EVERY  LICENSED  DEBT  COLLECTION  AGENCY
 SHALL  PRESERVE  SUCH  BOOKS,  ACCOUNTS,  AND RECORDS, FOR AT LEAST FIVE
 YEARS AFTER MAKING THE FINAL ENTRY REGARDING A CONSUMER DEBT.  PRESERVA-
 TION  OF  PHOTOGRAPHIC  REPRODUCTION  THEREOF OR RECORDS IN PHOTOGRAPHIC
 FORM, INCLUDING AN OPTICAL DISK STORAGE SYSTEM AND THE USE OF ELECTRONIC
 DATA PROCESSING EQUIPMENT THAT  PROVIDES  COMPARABLE  RECORDS  TO  THOSE
 OTHERWISE  REQUIRED AND WHICH ARE AVAILABLE FOR EXAMINATION UPON REQUEST
 SHALL CONSTITUTE COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION.
   2. EACH LICENSED DEBT COLLECTION AGENCY SHALL ANNUALLY, ON  OR  BEFORE
 APRIL  FIRST, FILE A REPORT WITH THE SUPERINTENDENT GIVING SUCH INFORMA-
 TION AS THE SUPERINTENDENT MAY REQUIRE CONCERNING THE BUSINESS AND OPER-
 ATIONS DURING THE PRECEDING CALENDAR YEAR  OF  EACH  LICENSED  PLACE  OF
 BUSINESS  CONDUCTED  BY  SUCH LICENSED DEBT COLLECTION AGENCY WITHIN THE
 STATE UNDER AUTHORITY OF THIS ARTICLE. SUCH REPORT SHALL  BE  SUBSCRIBED
 AND  AFFIRMED  AS  TRUE BY THE LICENSED DEBT COLLECTION AGENCY UNDER THE
 PENALTIES OF PERJURY AND SHALL BE IN THE FORM PRESCRIBED BY  THE  SUPER-
 INTENDENT.
   3.  IN ADDITION TO ANNUAL REPORTS, THE SUPERINTENDENT MAY REQUIRE SUCH
 ADDITIONAL REGULAR OR SPECIAL REPORTS AS MAY BE DEEMED NECESSARY TO  THE
 PROPER SUPERVISION OF A LICENSED DEBT COLLECTION AGENCY UNDER THIS ARTI-
 CLE.    SUCH  ADDITIONAL  REPORTS SHALL BE IN THE FORM PRESCRIBED BY THE
 SUPERINTENDENT AND SHALL BE SUBSCRIBED AND AFFIRMED AS  TRUE  UNDER  THE
 PENALTIES OF PERJURY.
   4. THE EXPENSES OF EVERY EXAMINATION OF THE AFFAIRS OF A LICENSED DEBT
 COLLECTION AGENCY SUBJECT TO THIS SECTION SHALL BE BORNE AND PAID BY THE
 LICENSED DEBT COLLECTION AGENCY.
   § 300. APPLICABILITY. 1. EXCEPT AS PROVIDED IN SUBDIVISION TWO OF THIS
 SECTION,  THE  PROVISIONS  OF  THIS ARTICLE SHALL EXCLUSIVELY GOVERN THE
 LICENSING OF DEBT COLLECTION AGENCIES NOTWITHSTANDING THE PROVISIONS  OF
 ANY OTHER LAW TO THE CONTRARY AND FURTHER, NO LOCAL LAW SHALL BE ENACTED
 WHICH SHALL REQUIRE ANY FEE OR LICENSE FOR THE LICENSURE OR REGISTRATION
 OF DEBT COLLECTION AGENCIES.
   2.  THE  PROVISIONS OF THIS ARTICLE SHALL NOT BE CONSTRUED TO LIMIT IN
 ANY WAY THE AUTHORITY OF A POLITICAL SUBDIVISION TO ENACT, IMPLEMENT AND
 CONTINUE TO ENFORCE LOCAL LAWS AND REGULATIONS GOVERNING  THE  LICENSURE
 OR REGISTRATION OF DEBT COLLECTION AGENCIES THAT WERE IN EFFECT PRIOR TO
 THE  EFFECTIVE  DATE OF THIS ARTICLE, OR TO ENACT, IMPLEMENT AND ENFORCE
 ANY AMENDMENTS THERETO.
   § 3. Subdivision (e) of rule 3015 of the civil practice law and rules,
 as amended by chapter 693 of the laws of 2019, is  amended  to  read  as
 follows:
   (e)  License  to  do  business.  Where the plaintiff's cause of action
 against a consumer arises from the plaintiff's  conduct  of  a  business
 which is required by state or local law to be licensed by the department
 of  consumer affairs of the city of New York, the Suffolk county depart-
 ment of consumer affairs, the county of Rockland, the county of  Putnam,
 the county of Westchester, [or] the Nassau county department of consumer
 A. 4088                             9
 
 affairs  OR  THE  DEPARTMENT  OF  FINANCIAL SERVICES PURSUANT TO ARTICLE
 SEVEN OF THE BANKING LAW, the complaint shall allege,  as  part  of  the
 cause  of  action,  that  plaintiff  was  duly  licensed  at the time of
 services rendered and shall contain the name and number, if any, of such
 license and the governmental agency which issued such license. The fail-
 ure  of  the  plaintiff  to comply with this subdivision will permit the
 defendant to move for dismissal pursuant to paragraph seven of  subdivi-
 sion (a) of rule thirty-two hundred eleven of this chapter.
   § 4. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4088--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2023
                                ___________
 
 Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
   tee on Banks -- committee discharged, bill amended, ordered  reprinted
   as amended and recommitted to said committee
 
 AN ACT to amend the banking law and the civil practice law and rules, in
   relation to licensing consumer debt collectors

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The banking law is amended by adding a  new  article  7  to
 read as follows:
                                ARTICLE VII
                     LICENSED CONSUMER DEBT COLLECTORS
 SECTION 295. DEFINITIONS.
         296. LICENSE REQUIRED; ENTITIES EXEMPT.
         297. APPLICATION FOR LICENSE; FEES.
         298. SURETY BOND REQUIRED.
         299. EXAMINATION; BOOKS AND RECORDS; REPORTS.
         300. PROHIBITED ACTS.
         301. REGULATIONS; MINIMUM STANDARDS.
         302. APPLICATION  FOR  ACQUISITION OF CONTROL OF A CONSUMER DEBT
                COLLECTOR.
         303. SUSPENSION AND REVOCATION.
         304. BAD ACTORS.
         305. PENALTIES.
         306. PREEMPTION.
   § 295. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "AFFILIATED COMPANY" MEANS  A  CONSUMER  DEBT  COLLECTOR  OPERATING
 UNDER  THE  CONTROL  OF A LICENSEE, PROVIDED THAT THE AFFILIATED COMPANY
 SHARES COMMON FACILITIES, MANAGEMENT, AND OPERATIONS WITH  THE  LICENSEE
 AND  THE AFFILIATED COMPANY DOES NOT ENGAGE IN ANY COLLECTION ACTIVITIES
 OTHER THAN DEBT BUYING OR DEBT COLLECTION FOR THE LICENSEE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03040-06-3
 A. 4088--A                          2
              

 
   2. "APPLICANT" MEANS A CONSUMER DEBT COLLECTOR WHO HAS FILED AN APPLI-
 CATION TO OBTAIN A LICENSE UNDER THIS ARTICLE.
   3.  "COMMUNICATION"  AND "COMMUNICATE" MEANS THE CONVEYING OF INFORMA-
 TION REGARDING A CONSUMER DEBT DIRECTLY  OR  INDIRECTLY  TO  ANY  PERSON
 THROUGH ANY MEDIUM.
   4.  "CONSUMER  DEBT"  MEANS ANY OBLIGATION OF A NATURAL PERSON FOR THE
 PAYMENT OF MONEY OR ITS EQUIVALENT WHICH ARISES  OUT  OF  A  TRANSACTION
 WHICH  WAS  PRIMARILY  FOR  PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES. THE
 TERM INCLUDES AN OBLIGATION OF A  NATURAL  PERSON  WHO  IS  A  CO-MAKER,
 ENDORSER, GUARANTOR OR SURETY OF SUCH A TRANSACTION.
   5.  "CONSUMER DEBTOR" MEANS ANY NATURAL PERSON WHO OWES OR IS ASSERTED
 TO OWE ANY CONSUMER DEBT.
   6. "CONSUMER DEBT COLLECTOR" MEANS ANY PERSON WHO ENGAGES IN  A  BUSI-
 NESS, A PRINCIPAL PURPOSE OF WHICH IS CONSUMER DEBT BUYING, OR REGULARLY
 COLLECTING  OR  ATTEMPTING  TO COLLECT, DIRECTLY OR INDIRECTLY, CONSUMER
 DEBTS: (A) OWED OR DUE OR ASSERTED TO BE OWED OR DUE TO ANOTHER  PERSON;
 OR  (B)  OBTAINED BY OR ASSIGNED TO SUCH PERSON THAT ARE IN DEFAULT WHEN
 OBTAINED OR ACQUIRED BY SUCH PERSON. THE TERM INCLUDES ANY CREDITOR WHO,
 IN THE PROCESS OF COLLECTING ITS OWN CONSUMER DEBTS, AND USES  ANY  NAME
 OTHER  THAN  ITS OWN WHICH WOULD REASONABLY INDICATE THAT A THIRD PERSON
 IS COLLECTING OR ATTEMPTING TO COLLECT A CONSUMER DEBT.
   7. "CONTROL" MEANS THE POSSESSION, DIRECT OR INDIRECT, OF THE POWER TO
 DIRECT OR CAUSE THE DIRECTION  OF  THE  MANAGEMENT  AND  POLICIES  OF  A
 PERSON, WHETHER THROUGH THE OWNERSHIP OF VOTING SECURITIES, BY CONTRACT,
 EXCEPT  A  COMMERCIAL  CONTRACT FOR GOODS OR NON-MANAGEMENT SERVICES, OR
 OTHERWISE. CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON DIRECTLY  OR
 INDIRECTLY OWNS, CONTROLS OR HOLDS WITH THE POWER TO VOTE TEN PERCENT OR
 MORE OF THE VOTING SECURITIES OF ANY OTHER PERSON.
   8. "CREDITOR" MEANS ANY PERSON TO WHOM A CONSUMER DEBT IS OWED, DUE OR
 ASSERTED TO BE DUE OR OWED, OR ANY ASSIGNEE FOR VALUE OF SAID PERSON.
   9.  "LICENSEE"  MEANS  A CONSUMER DEBT COLLECTOR THAT POSSESSES ONE OR
 MORE LICENSES PURSUANT TO THIS ARTICLE.
   10. "PERSON" MEANS A NATURAL PERSON OR ANY ENTITY, INCLUDING  BUT  NOT
 LIMITED  TO  ANY  PARTNERSHIP,  CORPORATION,  LIMITED LIABILITY COMPANY,
 BRANCH, AGENCY, ASSOCIATION, ORGANIZATION, ANY  SIMILAR  ENTITY  OR  ANY
 COMBINATION OF THE FOREGOING ACTING IN CONCERT.
   § 296. LICENSE REQUIRED; ENTITIES EXEMPT. 1. NO PERSON SHALL ACT WITH-
 IN  THIS  STATE  AS  A  CONSUMER DEBT COLLECTOR, DIRECTLY OR INDIRECTLY,
 WITHOUT FIRST OBTAINING A LICENSE FROM THE  SUPERINTENDENT.  A  CONSUMER
 DEBT  COLLECTOR  IS ACTING WITHIN THIS STATE IF IT IS PHYSICALLY LOCATED
 IN NEW YORK OR IF IT IS SEEKING TO COLLECT FROM ANY CONSUMER DEBTOR THAT
 RESIDES WITHIN THIS STATE.
   2. NO CREDITOR, OR THE STATE OR MUNICIPALITY OF THE STATE, MAY UTILIZE
 THE SERVICES OF A CONSUMER DEBT COLLECTOR TO  COLLECT  FROM  A  CONSUMER
 DEBTOR THAT RESIDES WITHIN THIS STATE UNLESS THE CONSUMER DEBT COLLECTOR
 IS LICENSED BY THE SUPERINTENDENT.
   3.  NO PERSON SHALL ACCEPT PAYMENTS FROM CONSUMER DEBTORS ON BEHALF OF
 A CONSUMER DEBT COLLECTOR ACTING WITHIN THIS STATE UNLESS SUCH  CONSUMER
 DEBT COLLECTOR IS LICENSED BY THE SUPERINTENDENT.
   4. THE REQUIREMENTS OF SUBDIVISIONS ONE, TWO AND THREE OF THIS SECTION
 SHALL NOT APPLY TO:
   (A) ANY OFFICER OR EMPLOYEE OF A LICENSED CONSUMER DEBT COLLECTOR WHEN
 ATTEMPTING TO COLLECT ON BEHALF OF SUCH CONSUMER DEBT COLLECTOR;
   (B)  ANY  OFFICER  OR  EMPLOYEE OF A CREDITOR WHILE IN THE NAME OF THE
 CREDITOR COLLECTING DEBTS FOR SUCH CREDITOR;
   (C) ANY PUBLIC OFFICER ACTING IN THEIR OFFICIAL CAPACITY;
 A. 4088--A                          3
 
   (D) A PERSON WHO IS PRINCIPALLY ENGAGED IN THE BUSINESS  OF  SERVICING
 LOANS  OR  ACCOUNTS WHICH ARE NOT DELINQUENT FOR THE OWNERS THEREOF WHEN
 IN ADDITION TO REQUESTING PAYMENT FROM DELINQUENT CONSUMER DEBTORS,  THE
 PERSON PROVIDES OTHER SERVICES INCLUDING RECEIPT OF PAYMENT, ACCOUNTING,
 RECORD-KEEPING,  DATA  PROCESSING  SERVICES  AND REMITTING, FOR LOANS OR
 ACCOUNTS WHICH ARE CURRENT AS WELL AS THOSE WHICH ARE DELINQUENT;
   (E) ANY PERSON WHILE SERVING OR MAKING A BONA FIDE  ATTEMPT  TO  SERVE
 LEGAL  PROCESS  ON  ANY  OTHER  PERSON  IN  CONNECTION WITH THE JUDICIAL
 ENFORCEMENT OF ANY DEBT;
   (F) ANY NON-PROFIT ORGANIZATION WHICH, AT THE REQUEST  OF  A  CONSUMER
 DEBTOR,  PERFORMS  BONA  FIDE  CONSUMER  CREDIT  COUNSELING  AND ASSISTS
 CUSTOMERS IN THE LIQUIDATION OF THEIR DEBTS BY RECEIVING  PAYMENTS  FROM
 SUCH CONSUMER DEBTORS AND DISTRIBUTING SUCH AMOUNTS TO CREDITORS;
   (G)  ANY  BANK, TRUST COMPANY, SAVINGS BANKS, SAVINGS AND LOAN ASSOCI-
 ATION, CREDIT UNION, OR FOREIGN BANKING  CORPORATION,  WHETHER  INCORPO-
 RATED,  CHARTERED,  ORGANIZED  OR LICENSED UNDER THE LAWS OF THIS STATE,
 ANY OTHER STATE, OR THE UNITED STATES, ANY AGENCY  OR  DIVISION  OF  THE
 FEDERAL GOVERNMENT, OR ANY INSURER DOING BUSINESS UNDER A LICENSE ISSUED
 UNDER THE INSURANCE LAW;
   (H)  A  SUBSIDIARY  OR  AFFILIATE  OF ANY BANK, TRUST COMPANY, SAVINGS
 BANKS, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION,  OR  FOREIGN  BANKING
 CORPORATION,  WHETHER  INCORPORATED,  CHARTERED,  ORGANIZED  OR LICENSED
 UNDER THE LAWS OF THIS STATE, ANY OTHER STATE, OR THE UNITED STATES, ANY
 AGENCY OR DIVISION OF THE FEDERAL GOVERNMENT, OR ANY INSURER DOING BUSI-
 NESS UNDER A LICENSE ISSUED  UNDER  THE  INSURANCE  LAW,  PROVIDED  SUCH
 AFFILIATE  OR  SUBSIDIARY  IS  NOT  PRIMARILY ENGAGED IN THE BUSINESS OF
 PURCHASING AND COLLECTING UPON DELINQUENT DEBT,  OTHER  THAN  DELINQUENT
 CONSUMER DEBT SECURED BY REAL PROPERTY;
   (I)  ANY PERSON ENGAGED IN BUSINESS, THE PRINCIPAL PURPOSE OF WHICH IS
 TO REGULARLY COLLECT OR ATTEMPT TO COLLECT DEBTS OWED OR DUE OR ASSERTED
 TO BE OWED OR DUE TO ANOTHER PERSON   WHERE THE  DEBT  IS  ENFORCED  FOR
 CHILD SUPPORT, SPOUSAL SUPPORT, MAINTENANCE OR ALIMONY, PROVIDED, HOWEV-
 ER,  THAT  IF SUCH PERSON ALSO REGULARLY COLLECTS OR ATTEMPTS TO COLLECT
 DEBTS OTHER THAN THOSE ENFORCED  FOR  CHILD  SUPPORT,  SPOUSAL  SUPPORT,
 MAINTENANCE OR ALIMONY, SUCH PERSON MUST COMPLY WITH THE REQUIREMENTS OF
 THIS ARTICLE;
   (J)  ANY  PERSON WHILE ACTING AS A CONSUMER DEBT COLLECTOR FOR ANOTHER
 PERSON, BOTH OF WHOM ARE RELATED BY COMMON OWNERSHIP  OR  AFFILIATED  BY
 CORPORATE  CONTROL,  IF THE PERSON   ACTING AS A CONSUMER DEBT COLLECTOR
 DOES SO ONLY FOR PERSONS TO WHOM IT IS SO RELATED OR  AFFILIATED AND  IF
 THE  PRINCIPAL BUSINESS OF SUCH PERSON IS NOT THE COLLECTION OF CONSUMER
 DEBTS;
   (K) ANY ATTORNEY-AT-LAW OR LAW FIRM COLLECTING A DEBT IN SUCH CAPACITY
 ON BEHALF OF AND IN THE NAME OF A CLIENT SOLELY THROUGH ACTIVITIES  THAT
 MAY  ONLY BE PERFORMED BY A LICENSED  ATTORNEY, BUT NOT ANY ATTORNEY-AT-
 LAW OR LAW FIRM OR PART THEREOF  WHO  REGULARLY  ENGAGES  IN  ACTIVITIES
 TRADITIONALLY  PERFORMED BY CONSUMER DEBT COLLECTORS, INCLUDING, BUT NOT
 LIMITED TO,  CONTACTING A CONSUMER DEBTOR THROUGH THE MAIL OR VIA  TELE-
 PHONE WITH THE PURPOSE OF COLLECTING A CONSUMER DEBT OR OTHER ACTIVITIES
 AS DETERMINED BY RULE OF THE SUPERINTENDENT;
   (L) ANY PERSON EMPLOYED BY A UTILITY REGULATED UNDER THE PROVISIONS OF
 THE PUBLIC SERVICE LAW, ACTING FOR SUCH UTILITY;
   (M)  ANY  PERSON COLLECTING OR ATTEMPTING TO COLLECT ANY CONSUMER DEBT
 OWED OR DUE OR ASSERTED TO BE OWED OR DUE ANOTHER  TO  THE  EXTENT  SUCH
 ACTIVITY:  (I)  IS  INCIDENTAL TO A BONA FIDE FIDUCIARY  OBLIGATION OR A
 BONA FIDE ESCROW AGREEMENT; (II) CONCERNS  A  CONSUMER  DEBT  WHICH  WAS
 A. 4088--A                          4
 
 ORIGINATED  BY  SUCH PERSON; OR (III) CONCERNS A CONSUMER DEBT WHICH WAS
 NOT IN DEFAULT AT THE TIME IT WAS OBTAINED BY  SUCH PERSON AS A  SECURED
 PARTY IN A COMMERCIAL CREDIT TRANSACTION INVOLVING THE CREDITOR; AND
   (N) ANY OFFICER OR EMPLOYEE OF THE UNITED STATES, ANY STATE THEREOF OR
 ANY POLITICAL  SUBDIVISION OF ANY STATE TO THE EXTENT THAT COLLECTING OR
 ATTEMPTING  TO COLLECT ANY DEBT OWED IS IN THE PERFORMANCE OF HIS OR HER
 OFFICIAL DUTIES.
   § 297. APPLICATION FOR LICENSE; FEES. 1.  (A)  AN  APPLICATION  FOR  A
 LICENSE  UNDER  THIS ARTICLE SHALL BE IN WRITING, UNDER OATH, AND IN THE
 FORM PRESCRIBED BY THE SUPERINTENDENT AND SHALL CONTAIN SUCH INFORMATION
 RELATED TO THE COLLECTION OF CONSUMER DEBTS AS  THE  SUPERINTENDENT  MAY
 REQUIRE.  IN ADDITION TO ANY OTHER INFORMATION REQUIRED, THE SUPERINTEN-
 DENT  SHALL  REQUIRE THE  FOLLOWING INFORMATION, AND SHALL, AS APPROPRI-
 ATE, REQUIRE SUCH INFORMATION NOT ONLY OF THE  APPLICANT BUT ALSO OF ANY
 OF ITS PRINCIPALS, PARTNERS, OFFICERS AND DIRECTORS, OR  ANY  PERSON  OR
 ENTITY CONTROLLING AN INTEREST GREATER THAN TEN PERCENT:
   (I) THE NAME AND RESIDENCE ADDRESS OF THE APPLICANT;
   (II) THE BUSINESS NAME, IF OTHER THAN THE APPLICANT;
   (III)  THE PLACE, INCLUDING THE CITY, TOWN OR VILLAGE, WITH THE STREET
 AND NUMBER, WHERE THE BUSINESS IS TO BE LOCATED;
   (IV) THE BUSINESS TELEPHONE OF THE APPLICANT;
   (V) THE LENGTH OF TIME THAT THE APPLICANT HAS  BEEN  A  CONSUMER  DEBT
 COLLECTOR;
   (VI) A STATEMENT INDICATING WHETHER THE APPLICANT HAS:
   (A)  BEEN  CONVICTED  OF  ANY CRIME OR IS A DEBTOR ON ANY UNPAID CIVIL
 JUDGMENT RELATING TO WORK AS A CONSUMER DEBT COLLECTOR; AND
   (B) AT ANY TIME IN THE PAST BEEN ISSUED A  LICENSE  PURSUANT  TO  THIS
 ARTICLE,  OR HAS BEEN ISSUED A LICENSE FOR DEBT COLLECTION ACTIVITIES BY
 ANY OTHER STATE OR LOCAL  AUTHORITY, AND IF SO, WHETHER SUCH LICENSE WAS
 EVER REVOKED OR SUSPENDED;
   (VII) A LIST OF CERTIFICATIONS ISSUED TO THE CONSUMER  DEBT  COLLECTOR
 BY NONPROFIT TRADE ASSOCIATIONS;
   (VIII)  UNLESS THE CONSUMER DEBT COLLECTOR IS CERTIFIED BY A NONPROFIT
 TRADE ASSOCIATION RECOGNIZED BY THE SUPERINTENDENT AS  HAVING  STANDARDS
 THAT  ADDRESS  THE FOLLOWING REQUIREMENTS, A DETAILED DESCRIPTION OF THE
 BUSINESS PRACTICES OR METHODS USED, OR  INTENDED  TO  BE  USED,  BY  THE
 APPLICANT  TO CONFIRM THE VALIDITY OF THE DEBTS IT SEEKS TO COLLECT FROM
 CONSUMERS;
   (IX) UNLESS THE CONSUMER DEBT COLLECTOR IS CERTIFIED  BY  A  NONPROFIT
 TRADE  ASSOCIATION  RECOGNIZED BY THE SUPERINTENDENT AS HAVING STANDARDS
 THAT ADDRESS THE FOLLOWING REQUIREMENTS, A SUMMARY  OF  THE  APPLICANT'S
 RECORD-KEEPING POLICY, INCLUDING, BUT NOT LIMITED TO:
   (A)  THE  LENGTH  OF TIME THE APPLICANT MAINTAINS, OR INTENDS TO MAIN-
 TAIN, RECORDS PERTAINING TO CONSUMERS; AND
   (B) THE MANNER IN WHICH THE APPLICANT RECORDS AND STORES,  OR  INTENDS
 TO  RECORD AND STORE: CONSUMER CHALLENGES TO THE VALIDITY OF DEBT; BILL-
 ING ERRORS;  PAYMENTS MADE BY A CONSUMER; SETTLEMENT AGREEMENTS;  INFOR-
 MATION  REGARDING PARTIES RESPONSIBLE FOR DEBT; ANY STATEMENTS MADE BY A
 CONSUMER ALLEGING THAT THE DEBT  AROSE  FROM  IDENTITY  THEFT;  AND  ANY
 STATEMENTS  MADE BY A CONSUMER STATING THAT THE CONSUMER RECEIVED STATU-
 TORILY EXEMPT INCOME AS DEFINED IN SECTION FIFTY-TWO HUNDRED  TWENTY-TWO
 OF THE CIVIL PRACTICE LAW AND RULES;
   (X) WHETHER THE APPLICANT REGULARLY SELLS, OR INTENDS TO SELL, CONSUM-
 ER  DEBTS.  IF THE APPLICANT   SELLS, OR INTENDS TO SELL CONSUMER DEBTS,
 SUCH APPLICANT SHALL BE REQUIRED TO PROVIDE THE  SUPERINTENDENT  WITH  A
 SUMMARY  OF  THE  APPLICANT'S  POLICY  WITH  RESPECT  TO THE INFORMATION
 A. 4088--A                          5
 
 REGARDING A CONSUMER'S ACCOUNT THAT IT TRANSMITS, OR WILL  TRANSMIT,  TO
 THE  PURCHASER OF A CONSUMER DEBT, UNLESS THE CONSUMER DEBT COLLECTOR IS
 CERTIFIED BY A NONPROFIT TRADE ASSOCIATION RECOGNIZED BY THE SUPERINTEN-
 DENT AS HAVING STANDARDS THAT ADDRESS THIS REQUIREMENT;
   (XI) A SWORN STATEMENT BY THE APPLICANT THAT THE INFORMATION SET FORTH
 IN THE APPLICATION IS CURRENT AND ACCURATE; AND
   (XII)  THE  NAME  OF  EACH  AFFILIATED COMPANY THE APPLICANT WISHES TO
 INCLUDE ON THE LICENSE.
   (B) THE SUPERINTENDENT MAY REJECT AN APPLICATION FOR A LICENSE  OR  AN
 APPLICATION  FOR  THE RENEWAL OF A LICENSE IF HE OR SHE IS NOT SATISFIED
 THAT THE FINANCIAL RESPONSIBILITY, CHARACTER, REPUTATION, INTEGRITY  AND
 GENERAL  FITNESS OF THE APPLICANT AND OF THE OWNERS, PARTNERS OR MEMBERS
 THEREOF, IF THE APPLICANT BE A PARTNERSHIP OR ASSOCIATION,  AND  OF  THE
 OFFICERS  AND  DIRECTORS, IF THE APPLICANT BE A CORPORATION, ARE SUCH AS
 TO COMMAND THE CONFIDENCE OF THE PUBLIC AND TO WARRANT THE  BELIEF  THAT
 THE  BUSINESS  FOR  WHICH THE APPLICATION FOR A LICENSE IS FILED WILL BE
 OPERATED LAWFULLY, HONESTLY AND FAIRLY.
   2. AT THE TIME OF MAKING THE APPLICATION FOR A LICENSE, THE  APPLICANT
 SHALL  PAY TO THE SUPERINTENDENT A FEE AS PRESCRIBED PURSUANT TO SECTION
 EIGHTEEN-A OF THIS CHAPTER FOR EACH PROPOSED LOCATION, FOR INVESTIGATING
 THE APPLICATION.
   3. IN ADDITION TO ANY OTHER FEE IMPOSED ON AN APPLICANT  OR  LICENSEE,
 EVERY  LICENSEE  SHALL PAY TO THE SUPERINTENDENT THE SUMS PROVIDED TO BE
 PAID UNDER THE PROVISIONS OF SECTION TWO HUNDRED SIX  OF  THE  FINANCIAL
 SERVICES LAW.
   4.  THE  LICENSE  SHALL BE FOR A PERIOD OF ONE YEAR AS OF THE FIRST OF
 JANUARY EACH YEAR, OR SUCH OTHER DATE AS DETERMINED BY  THE  SUPERINTEN-
 DENT BY REGULATION.
   5.  EACH  LICENSE SHALL PLAINLY STATE THE NAME OF THE LICENSEE AND THE
 CITY OR TOWN WITH THE NAME OF THE STREET AND  NUMBER,  IF  ANY,  OF  THE
 PLACE  WHERE  THE  BUSINESS  IS  TO  BE CARRIED ON. A LICENSEE SHALL NOT
 CHANGE THE LOCATION WHERE THE BUSINESS OF THE LICENSEE IS TO BE  CARRIED
 ON  WITHOUT  FIRST  PROVIDING  WRITTEN NOTICE TO THE SUPERINTENDENT. THE
 RELOCATION NOTICE SHALL BE IN WRITING SETTING FORTH THE REASON  FOR  THE
 RELOCATION,  AND  SHALL BE ACCOMPANIED BY A RELOCATION INVESTIGATION FEE
 TO BE DETERMINED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER.
   6. THE BUSINESS SHALL AT ALL TIMES BE CONDUCTED IN  THE  NAME  OF  THE
 LICENSEE  AS IT APPEARS ON THE LICENSE AND IN NO OTHER NAME, INCLUDING A
 SHORTENED OR ABBREVIATED VERSION THEREOF.  THE SUPERINTENDENT MAY PERMIT
 AFFILIATED COMPANIES TO BE UNDER A  SINGLE  LICENSE  AND  SUBJECT  TO  A
 SINGLE EXAMINATION AS LONG AS ALL OF THE AFFILIATED COMPANY NAMES ARE ON
 THE LICENSE.
   7. THE LICENSE SHALL NOT BE TRANSFERABLE NOR ASSIGNABLE.
   8.  THE  SUPERINTENDENT  MAY  PARTICIPATE  IN  A MULTI-STATE LICENSING
 SYSTEM FOR THE SHARING OF REGULATORY INFORMATION AND FOR  THE  LICENSING
 AND  APPLICATION,  BY  ELECTRONIC OR OTHER MEANS, OF ENTITIES ENGAGED IN
 THE BUSINESS OF CONSUMER DEBT COLLECTION. THE SUPERINTENDENT MAY  ESTAB-
 LISH  REQUIREMENTS  FOR  PARTICIPATION  BY AN APPLICANT IN A MULTI-STATE
 LICENSING SYSTEM WHICH MAY VARY FROM THE PROVISIONS OF THIS SECTION. THE
 SUPERINTENDENT MAY REQUIRE A BACKGROUND INVESTIGATION OF EACH  APPLICANT
 FOR  A  CONSUMER  DEBT  COLLECTOR LICENSE BY MEANS OF FINGERPRINT, WHICH
 SHALL BE SUBMITTED BY ALL APPLICANTS SIMULTANEOUSLY WITH AN  APPLICATION
 AND  WHICH  THE  SUPERINTENDENT  MAY  SUBMIT TO THE DIVISION OF CRIMINAL
 JUSTICE SERVICES AND THE FEDERAL BUREAU OF INVESTIGATION FOR  STATE  AND
 NATIONAL  CRIMINAL HISTORY RECORD CHECKS. IF THE APPLICANT IS A PARTNER-
 SHIP, ASSOCIATION, CORPORATION OR OTHER FORM OF  BUSINESS  ORGANIZATION,
 A. 4088--A                          6
 
 THE  SUPERINTENDENT  MAY  REQUIRE  A  BACKGROUND  INVESTIGATION FOR EACH
 MEMBER OR SHAREHOLDER HOLDING MORE THAN FIVE  PERCENT  OWNERSHIP,  BOARD
 DIRECTOR  AND  PRINCIPAL  OFFICER  OF  THE  APPLICANT AND ANY INDIVIDUAL
 ACTING  AS  A  MANAGER  OF  AN  OFFICE LOCATION. THE APPLICANT SHALL PAY
 DIRECTLY TO THE MULTI-STATE LICENSING SYSTEM ANY ADDITIONAL FEES  RELAT-
 ING TO PARTICIPATION IN THE MULTI-STATE LICENSING SYSTEM.
   9.  THE  SUPERINTENDENT  SHALL  ISSUE  EACH  CONSUMER DEBT COLLECTOR A
 UNIQUE LICENSE NUMBER.
   10. THE DEPARTMENT SHALL  MAINTAIN  AND  PUBLISH  A  REGISTRY  OF  ALL
 LICENSED  CONSUMER  DEBT  COLLECTORS, WHICH SHALL LIST AND IDENTIFY, ALL
 LICENSED CONSUMER DEBT COLLECTORS DOING  BUSINESS  IN  THIS  STATE.  THE
 DEPARTMENT SHALL MAKE THE REGISTRY AVAILABLE ON ITS WEBSITE.
   11.  EACH CONSUMER DEBT COLLECTOR ENGAGED IN COLLECTING CONSUMER DEBTS
 SHALL COMMUNICATE HIS OR HER LICENSE NUMBER  UPON  THE  REQUEST  OF  ANY
 INTERESTED  PARTY.  ANY  ADVERTISEMENT,    LETTERHEAD,  RECEIPT OR OTHER
 PRINTED MATTER OF A LICENSEE MUST CONTAIN THE LICENSE NUMBER ASSIGNED TO
 THE LICENSEE BY THE DEPARTMENT. SUCH LICENSE NUMBER SHALL BE CLEARLY AND
 CONSPICUOUSLY DISPLAYED IN NO LESS THAN A TEN-POINT FONT.
   12. NO PERSON SHALL: (A) PRESENT, OR ATTEMPT TO PRESENT, AS  HIS,  HER
 OR ITS OWN, THE LICENSE NUMBER OF ANOTHER;
   (B)  KNOWINGLY GIVE FALSE EVIDENCE OF A MATERIAL NATURE TO THE DEPART-
 MENT FOR THE PURPOSE OF PROCURING A LICENSE;
   (C) FALSELY REPRESENT  THEMSELVES  TO  BE  A  LICENSED  CONSUMER  DEBT
 COLLECTOR;
   (D) USE OR ATTEMPT TO USE A LICENSE WHICH HAS EXPIRED;
   (E) OFFER TO PERFORM OR PERFORM ANY COLLECTION OF CONSUMER DEBTS WITH-
 OUT HAVING A CURRENT LICENSE AS IS REQUIRED UNDER THIS ARTICLE; OR
   (F)  REPRESENT  IN ANY MANNER THAT HIS, HER OR ITS LICENSE CONSTITUTES
 AN ENDORSEMENT OF THE  QUALITY  OF  WORKMANSHIP  OR  COMPETENCY  OF  THE
 CONSUMER DEBT COLLECTOR.
   § 298. SURETY BOND REQUIRED. 1. (A) A CONSUMER DEBT COLLECTOR SHALL BE
 REQUIRED TO FILE AND MAINTAIN IN FORCE A SURETY BOND, ISSUED BY A DOMES-
 TIC  INSURER,  AS  A  CONDITION PRECEDENT TO THE ISSUANCE OR RENEWAL AND
 MAINTENANCE OF A LICENSE UNDER THIS ARTICLE.
   (B) THE BOND SHALL BE FOR THE BENEFIT OF CREDITORS WHO OBTAIN A  JUDG-
 MENT  FROM A COURT OF COMPETENT JURISDICTION BASED ON THE FAILURE OF THE
 CONSUMER DEBT COLLECTOR TO REMIT MONEY COLLECTED ON ACCOUNT AND OWED  TO
 THE  CREDITOR.    THE  BOND  SHALL  ALSO  BE FOR THE BENEFIT OF CONSUMER
 DEBTORS OR THE ATTORNEY GENERAL SEEKING RESTITUTION FOR CONSUMER DEBTORS
 WHEN SUCH CONSUMER DEBTOR OR THE ATTORNEY GENERAL OBTAINS JUDGMENT  FROM
 A  COURT  OF COMPETENT JURISDICTION BASED ON A VIOLATION BY THE CONSUMER
 DEBT COLLECTOR OF THE FEDERAL FAIR DEBT COLLECTION PRACTICE ACT  OR  ANY
 OTHER  NEW  YORK  LAW OR FEDERAL LAW REGULATING CONSUMER DEBT COLLECTION
 WHICH IS APPLICABLE TO THE CONSUMER DEBT COLLECTOR IF SUCH JUDGMENT  HAS
 NOT BEEN PAID WITHIN SIX MONTHS, EXCEPT IF THE DECISION IS UNDER APPEAL.
   (C)  THE BOND SHALL BE IN A FORM PRESCRIBED BY THE SUPERINTENDENT IN A
 SUM BASED ON THE GROSS PROFIT REPORTED TO THE INTERNAL  REVENUE  SERVICE
 FOR THE PREVIOUS YEAR BY SUCH CONSUMER DEBT COLLECTOR AS FOLLOWS:
   (I)  TEN THOUSAND DOLLARS FOR CONSUMER DEBT COLLECTORS THAT REPORTED A
 GROSS PROFIT OF LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS;
   (II) TWENTY-FIVE THOUSAND DOLLARS FOR CONSUMER  DEBT  COLLECTORS  THAT
 REPORTED A GROSS PROFIT OF TWO HUNDRED FIFTY THOUSAND DOLLARS OR MORE;
   (III)  FIFTY  THOUSAND  DOLLARS  FOR  CONSUMER  DEBT  COLLECTORS  THAT
 REPORTED A GROSS PROFIT OF FIVE HUNDRED THOUSAND DOLLARS OR MORE;
   (IV) SEVENTY-FIVE THOUSAND DOLLARS FOR CONSUMER DEBT  COLLECTORS  THAT
 REPORTED A GROSS PROFIT OF SEVEN HUNDRED FIFTY THOUSAND DOLLARS OR MORE;
 A. 4088--A                          7
 
   (V)  ONE  HUNDRED  THOUSAND  DOLLARS FOR CONSUMER DEBT COLLECTORS THAT
 REPORTED A GROSS PROFIT OF ONE MILLION DOLLARS OR MORE.
   (D) THE BOND SHALL BE CONTINUOUS IN FORM AND RUN CONCURRENTLY WITH THE
 ORIGINAL AND EACH RENEWAL LICENSE PERIOD UNLESS TERMINATED BY THE INSUR-
 ANCE  COMPANY.  AN  INSURANCE  COMPANY  MAY  TERMINATE  A BOND AND AVOID
 FURTHER LIABILITY BY FILING A NOTICE OF TERMINATION WITH THE  DEPARTMENT
 SIXTY  DAYS  PRIOR  TO  THE TERMINATION AND AT THE SAME TIME SENDING THE
 SAME NOTICE TO THE CONSUMER DEBT COLLECTOR.
   2. A LICENSE SHALL BE AUTOMATICALLY CANCELLED ON THE TERMINATION  DATE
 OF THE BOND UNLESS EITHER (A) A NEW BOND IS FILED WITH THE DEPARTMENT TO
 BECOME  EFFECTIVE  AT THE TERMINATION DATE OF THE PRIOR BOND, OR (B) THE
 LICENSED ENTITY PROVIDES THE SUPERINTENDENT A REFUNDABLE DEPOSIT IN LIEU
 OF THE BOND WHILE THE CONSUMER DEBT COLLECTOR PURSUES A NEW BOND.
   3. IF A LICENSE HAS BEEN CANCELLED UNDER THIS  SECTION,  THE  CONSUMER
 DEBT  COLLECTOR MUST FILE A NEW APPLICATION TO OBTAIN A LICENSE AND WILL
 BE CONSIDERED A NEW APPLICANT IF IT OBTAINS A NEW BOND.
   4. FOR THE PURPOSES OF THIS SECTION THE TERM "DOMESTIC INSURER"  SHALL
 HAVE  THE  SAME  MEANING  AS  GIVEN  IN SECTION ONE HUNDRED SEVEN OF THE
 INSURANCE LAW.  IF A BOND REQUIRED BY THIS  SECTION  IS  NOT  REASONABLY
 AVAILABLE  FROM A DOMESTIC INSURER THE SUPERINTENDENT MAY, IN HIS OR HER
 DISCRETION, PERMIT, ON A CASE BY CASE BASIS OR BY ORDER,  CONSUMER  DEBT
 COLLECTORS  TO  OBTAIN THE BOND REQUIRED BY THIS SECTION FROM SUCH OTHER
 ENTITIES LICENSED BY THE DEPARTMENT AS THE SUPERINTENDENT  DEEMS  APPRO-
 PRIATE.
   §  299. EXAMINATION; BOOKS AND RECORDS; REPORTS. 1. FOR THE PURPOSE OF
 ENFORCING THE PROVISIONS OF THIS ARTICLE AND FOR ENSURING THE  SAFE  AND
 SOUND OPERATION OF THE CONSUMER DEBT COLLECTOR BUSINESS, THE SUPERINTEN-
 DENT  MAY  AT  ANY  TIME,  AND  AS  OFTEN  AS  MAY BE DETERMINED, EITHER
 PERSONALLY OR BY A PERSON DULY APPOINTED BY THE SUPERINTENDENT, INVESTI-
 GATE THE LOANS, BUSINESS, BUSINESS PRACTICES, AND  BUSINESS  METHODS  OF
 ANY  CONSUMER  DEBT COLLECTOR, AND EXAMINE THE BOOKS, ACCOUNTS, RECORDS,
 AND FILES USED THEREIN OF EVERY LICENSEE.
   2. THE SUPERINTENDENT AND  DULY  DESIGNATED  REPRESENTATIVES  AND  LAW
 ENFORCEMENT  OFFICIALS WHOSE PRESENCE IS REQUESTED BY THE SUPERINTENDENT
 SHALL HAVE FREE ACCESS TO THE OFFICES  AND  PLACE  OF  BUSINESS,  BOOKS,
 ACCOUNTS,  PAPERS, RECORDS, AUDIO RECORDINGS, FILES, SAFES AND VAULTS OF
 ALL SUCH LICENSEES  WHEREVER  LOCATED.  THE  SUPERINTENDENT  SHALL  HAVE
 AUTHORITY  TO  REQUIRE  THE  ATTENDANCE OF AND TO EXAMINE UNDER OATH ALL
 PERSONS WHOMSOEVER WHOSE TESTIMONY MAY  BE  REQUIRED  RELATIVE  TO  SUCH
 CONSUMER  DEBTS, INCLUDING THE PURCHASE, SALE AND COLLECTION THEREOF, AS
 WELL AS PAYMENT PROCESSING ON SUCH CONSUMER DEBTS, AND RELATED BUSINESS.
   3. THE SUPERINTENDENT MAY ALSO ADDRESS TO A LICENSEE, OR THE OFFICERS,
 EMPLOYEES OR AGENTS THEREOF, ANY  INQUIRY  IN  RELATION  TO  ITS  TRANS-
 ACTIONS,  OPERATIONS,  OR CONDITIONS, OR ANY MATTER CONNECTED THEREWITH.
 EVERY PERSON SO ADDRESSED SHALL REPLY IN WRITING TO SUCH INQUIRY PROMPT-
 LY AND TRUTHFULLY, AND SUCH REPLY SHALL BE, IF REQUIRED  BY  THE  SUPER-
 INTENDENT, SUBSCRIBED BY SUCH INDIVIDUAL, OR BY SUCH OFFICER OR OFFICERS
 OF A CORPORATION, AS THE SUPERINTENDENT SHALL DESIGNATE, AND AFFIRMED BY
 THEM AS TRUE UNDER THE PENALTIES OF PERJURY.
   4.  EACH  LICENSEE  SHALL  KEEP  AND  USE  IN ITS BUSINESS SUCH BOOKS,
 ACCOUNTS, AND RECORDS AS WILL ENABLE  THE  SUPERINTENDENT  TO  DETERMINE
 WHETHER  SUCH  LICENSEE IS COMPLYING WITH THE PROVISIONS OF THIS ARTICLE
 AND WITH THE RULES AND REGULATIONS PROMULGATED HEREUNDER.  EVERY  LICEN-
 SEE  SHALL  KEEP  RECORDINGS  OF CONSUMER COLLECTION CALLS AND MAKE SUCH
 RECORDINGS AVAILABLE TO THE SUPERINTENDENT UPON REQUEST.  EVERY LICENSEE
 SHALL PRESERVE SUCH BOOKS, ACCOUNTS, AND  RECORDS,  FOR  AT  LEAST  FIVE
 A. 4088--A                          8
 
 YEARS  AFTER MAKING THE FINAL ENTRY REGARDING A CONSUMER DEBT. PRESERVA-
 TION OF PHOTOGRAPHIC REPRODUCTION THEREOF  OR  RECORDS  IN  PHOTOGRAPHIC
 FORM, INCLUDING AN OPTICAL DISK STORAGE SYSTEM AND THE USE OF ELECTRONIC
 DATA  PROCESSING  EQUIPMENT  THAT  PROVIDES  COMPARABLE RECORDS TO THOSE
 OTHERWISE REQUIRED AND WHICH ARE AVAILABLE FOR EXAMINATION UPON  REQUEST
 SHALL CONSTITUTE COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION.
   5.  EACH  LICENSEE  SHALL  ANNUALLY,  ON OR BEFORE APRIL FIRST, FILE A
 REPORT WITH THE SUPERINTENDENT GIVING SUCH  INFORMATION  AS  THE  SUPER-
 INTENDENT  MAY REQUIRE CONCERNING THE BUSINESS AND OPERATIONS DURING THE
 PRECEDING CALENDAR YEAR OF EACH LICENSED PLACE OF BUSINESS CONDUCTED  BY
 SUCH  LICENSEE  WITHIN  THE  STATE UNDER AUTHORITY OF THIS ARTICLE. SUCH
 REPORT SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY  THE  LICENSEE  UNDER
 THE  PENALTIES  OF  PERJURY  AND  SHALL BE IN THE FORM PRESCRIBED BY THE
 SUPERINTENDENT.
   6. IN ADDITION TO ANNUAL REPORTS, THE SUPERINTENDENT MAY REQUIRE  SUCH
 ADDITIONAL  REGULAR OR SPECIAL REPORTS AS MAY BE DEEMED NECESSARY TO THE
 PROPER SUPERVISION OF LICENSEES  UNDER  THIS  ARTICLE.  SUCH  ADDITIONAL
 REPORTS  SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT AND SHALL
 BE SUBSCRIBED AND AFFIRMED AS TRUE UNDER THE PENALTIES OF PERJURY.
   7. THE EXPENSES OF EVERY EXAMINATION OF THE AFFAIRS OF A CONSUMER DEBT
 COLLECTOR SUBJECT TO THIS SECTION SHALL BE BORNE AND PAID BY THE  LICEN-
 SEE.
   § 300. PROHIBITED ACTS. 1. NO CONSUMER DEBT COLLECTOR THAT IS REQUIRED
 TO  BE  LICENSED UNDER THIS ARTICLE SHALL ENGAGE IN UNFAIR, UNCONSCIONA-
 BLE, DECEPTIVE, FALSE, MISLEADING, ABUSIVE, OR UNLAWFUL  ACTS  OR  PRAC-
 TICES.
   2.  WITHOUT LIMITING THE GENERAL APPLICATION OF THE PROHIBITED ACTS IN
 SUBDIVISION ONE OF THIS SECTION, IT SHALL BE UNLAWFUL FOR  ANY  CONSUMER
 DEBT COLLECTOR TO:
   (A)  ENGAGE IN ANY ACT OR PRACTICE WHICH WOULD BE A MATERIAL VIOLATION
 OF THE FEDERAL FAIR DEBT COLLECTION PRACTICES ACT, ANY  OTHER  NEW  YORK
 LAW  OR  FEDERAL  LAW REGULATING CONSUMER DEBT COLLECTION, OR ANY ACT OR
 PRACTICE WHICH WOULD BE PROHIBITED UNDER SECTION SIX HUNDRED ONE OF  THE
 GENERAL  BUSINESS  LAW  IF  THE  CONSUMER DEBT COLLECTOR WAS A PRINCIPAL
 CREDITOR OR HIS OR HER AGENT;
   (B) ENGAGE OR RETAIN THE SERVICES OF ANY PERSON WHO, BEING REQUIRED TO
 BE LICENSED UNDER THIS ARTICLE, DOES NOT HAVE A VALID LICENSE ISSUED  BY
 THE DEPARTMENT; OR
   (C) CAUSE ANY ACT TO BE DONE WHICH VIOLATES THIS SECTION.
   3. NO CONSUMER DEBT COLLECTOR LICENSED UNDER THIS ARTICLE SHALL:
   (A)  WITHOUT  THE  PRIOR  WRITTEN  OR RECORDED CONSENT OF THE CONSUMER
 DEBTOR GIVEN DIRECTLY TO THE CREDITOR OR CONSUMER DEBT COLLECTOR OR  THE
 EXPRESS PERMISSION OF A COURT OF COMPETENT JURISDICTION, A CONSUMER DEBT
 COLLECTOR  MAY NOT COMMUNICATE WITH A CONSUMER DEBTOR IN CONNECTION WITH
 THE COLLECTION OF ANY CONSUMER DEBTS:
   (I) AT ANY UNUSUAL TIME OR PLACE OR A TIME OR  PLACE  KNOWN  OR  WHICH
 SHOULD  BE  KNOWN  TO  BE  INCONVENIENT  TO  THE CONSUMER DEBTOR. IN THE
 ABSENCE OF KNOWLEDGE OF CIRCUMSTANCES TO THE CONTRARY, A  CONSUMER  DEBT
 COLLECTOR SHALL ASSUME THAT THE CONVENIENT TIME FOR COMMUNICATING WITH A
 CONSUMER  DEBTOR  IS  AFTER  EIGHT  O'CLOCK ANTEMERIDIAN AND BEFORE NINE
 O'CLOCK POSTMERIDIAN, LOCAL TIME  AT  THE  CONSUMER  DEBTOR'S  LOCATION.
 UNLESS  THE  CONSUMER  DEBTOR  IS  KNOWN TO BE IN ANOTHER TIME ZONE, THE
 CONSUMER DEBT COLLECTOR CAN RELY ON THE LOCAL  TIME  OF  THE  AREA  CODE
 DIALED IN DETERMINING THE CONVENIENT TIME FOR COMMUNICATION;
   (II)  IF  THE  CONSUMER  DEBT  COLLECTOR  KNOWS THE CONSUMER DEBTOR IS
 REPRESENTED BY AN ATTORNEY WITH RESPECT TO SUCH CONSUMER  DEBT  AND  HAS
 A. 4088--A                          9
 
 KNOWLEDGE  OF,  OR  CAN  READILY  ASCERTAIN,  SUCH  ATTORNEY'S  NAME AND
 ADDRESS, UNLESS THE ATTORNEY FAILS TO RESPOND WITHIN A REASONABLE PERIOD
 OF TIME TO A COMMUNICATION FROM THE CONSUMER DEBT  COLLECTOR  OR  UNLESS
 THE ATTORNEY CONSENTS TO DIRECT COMMUNICATION WITH THE CONSUMER DEBTOR;
   (III) AT A PLACE KNOWN TO BE THE CONSUMER DEBTOR'S PLACE OF EMPLOYMENT
 UNLESS THE CONSUMER DEBTOR IS SELF-EMPLOYED;
   (IV)  MORE  THAN  TWO  TIMES BY TELEPHONE IN A SEVEN DAY PERIOD UNLESS
 RETURNING A CALL MADE AT THE CONSUMER DEBTOR'S REQUEST;
   (V) BY VOICEMAIL ON TO ANY TELEPHONE THAT IS KNOWN OR WHICH REASONABLY
 SHOULD BE KNOWN MAY BE RECEIVED  BY  SOMEONE  OTHER  THAN  THE  CONSUMER
 DEBTOR; OR
   (VI)  BY MEANS OF ELECTRONIC COMMUNICATIONS, INCLUDING BUT NOT LIMITED
 TO SMS TEXT MESSAGE, MESSAGING APPLICATIONS ON MOBILE TELEPHONES,  ELEC-
 TRONIC  MAIL,  FACEBOOK,  AND  OTHER  FORMS  OF  SOCIAL MEDIA, EXCEPT AS
 AUTHORIZED BY 12 CFR PART 1066 OR BY THE SUPERINTENDENT IN REGULATIONS.
   (B) COMMUNICATE WITH A CONSUMER DEBTOR BY POSTCARD;
   (C) CONTINUE COMMUNICATION WITH A CONSUMER DEBTOR AFTER  THE  CONSUMER
 DEBT  COLLECTOR'S  FIRST  COMMUNICATION  IF  THE CONSUMER DEBT COLLECTOR
 FAILS TO SEND THE CONSUMER DEBTOR A NOTICE IN WRITING WITHIN  FIVE  DAYS
 OF  THAT  FIRST COMMUNICATION, WHICH SUCH NOTICE SHALL BE PROMULGATED BY
 THE SUPERINTENDENT;
   (D) CONTINUE TO COMMUNICATE WITH A CONSUMER DEBTOR  ABOUT  A  CONSUMER
 DEBT  THAT  THE  CONSUMER DEBTOR DISPUTES WITHOUT PROVIDING THE CONSUMER
 DEBTOR WITH DATA OR DOCUMENTS THAT VERIFY THE DISPUTED CONSUMER DEBT; OR
   (E) UTILIZE A SERVICE OR  TECHNOLOGY  THAT  INTENTIONALLY  CAUSES  THE
 TELEPHONE  NETWORK TO INDICATE TO THE RECEIVER OF A CALL THAT THE ORIGI-
 NATOR OF THE CALL IS A STATION OTHER THAN THE TRUE  ORIGINATING  STATION
 FOR THE PURPOSE OF COLLECTING A CONSUMER DEBT.
   § 301. REGULATIONS; MINIMUM STANDARDS.  THE SUPERINTENDENT MAY PROMUL-
 GATE RULES AND REGULATIONS GIVING EFFECT TO THE PROVISIONS OF THIS ARTI-
 CLE.  SUCH RULES AND REGULATIONS MAY INCLUDE BUT SHALL NOT BE LIMITED TO
 THE ESTABLISHMENT OF MINIMUM STANDARDS TO BE OBSERVED BY  CONSUMER  DEBT
 COLLECTORS  ACTING WITHIN THIS STATE AND FURTHER DEFINING ACTS AND PRAC-
 TICES WHICH ARE UNFAIR, UNCONSCIONABLE,  DECEPTIVE,  FALSE,  MISLEADING,
 ABUSIVE, OR UNLAWFUL UNDER SECTION THREE HUNDRED OF THIS ARTICLE.
   §  302.  APPLICATION  FOR  ACQUISITION  OF  CONTROL OF A CONSUMER DEBT
 COLLECTOR.  1. NO PERSON SHALL ACQUIRE CONTROL OF A LICENSEE UNDER  THIS
 ARTICLE WITHOUT THE PRIOR APPROVAL OF THE SUPERINTENDENT.
   2.  ANY  PERSON  DESIROUS OF ACQUIRING SUCH CONTROL SHALL MAKE WRITTEN
 APPLICATION TO THE SUPERINTENDENT, SUCH APPLICATION  SHALL  BE  IN  SUCH
 FORM  AND  SHALL  CONTAIN  SUCH  INFORMATION,  INCLUDING THE INFORMATION
 REQUIRED UNDER SECTION TWO HUNDRED NINETY-SEVEN OF THIS ARTICLE, AS  THE
 SUPERINTENDENT  MAY  REQUIRE AND SUCH PERSON, AT THE TIME OF MAKING SUCH
 APPLICATION IF NOT LICENSED, SHALL PAY TO THE SUPERINTENDENT AN INVESTI-
 GATION FEE AS PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER.
   3. IN DETERMINING WHETHER TO APPROVE OR DENY AN APPLICATION UNDER THIS
 SECTION, THE SUPERINTENDENT SHALL CONSIDER:
   (A) WHETHER THE FINANCIAL RESPONSIBILITY, EXPERIENCE,  CHARACTER,  AND
 GENERAL  FITNESS  OF  THE  PERSON SEEKING TO ACQUIRE CONTROL, AND OF THE
 MEMBERS THEREOF IF SUCH PERSON BE A PARTNERSHIP OR ASSOCIATION,  AND  OF
 THE  OFFICERS,  DIRECTORS  AND  CONTROLLING STOCKHOLDERS THEREOF IF SUCH
 PERSON BE A CORPORATION, ARE SUCH AS TO COMMAND THE  CONFIDENCE  OF  THE
 COMMUNITY  AND  TO  WARRANT  BELIEF  THAT  THE BUSINESS WILL BE OPERATED
 HONESTLY, FAIRLY, AND EFFICIENTLY WITHIN THE PURPOSE OF THIS ARTICLE;
   (B) THE EFFECT THE ACQUISITION MAY HAVE ON COMPETITION; AND
 A. 4088--A                         10
 
   (C) WHETHER THE ACQUISITION MAY BE HAZARDOUS OR PREJUDICIAL TO CONSUM-
 ER DEBTORS OR CREDITORS IN THIS STATE.
   4.  IF  NO  SUCH APPLICATION HAS BEEN MADE PRIOR TO THE ACQUISITION OF
 CONTROL, THE LICENSE FOR EACH PLACE OF BUSINESS MAINTAINED AND  OPERATED
 BY  THE  LICENSEE SHALL, AT THE DISCRETION OF THE SUPERINTENDENT, BECOME
 NULL AND VOID AND EACH SUCH LICENSE SHALL BE SURRENDERED TO  THE  SUPER-
 INTENDENT.
   §  303.  SUSPENSION  AND REVOCATION. 1. IN ADDITION TO ANY OTHER POWER
 PROVIDED BY LAW, THE SUPERINTENDENT MAY SUSPEND OR REVOKE THE LICENSE OF
 A CONSUMER DEBT COLLECTOR, IF AFTER NOTICE  AND  AN  OPPORTUNITY  TO  BE
 HEARD, THE SUPERINTENDENT FINDS THAT A CONSUMER DEBT COLLECTOR HAS:
   (A)  COMMITTED  ANY FRAUD, ENGAGED IN ANY DISHONEST ACTIVITIES OR MADE
 ANY MISREPRESENTATION;
   (B) MATERIALLY VIOLATED ANY PROVISIONS OF THIS CHAPTER  OR  ANY  REGU-
 LATION ISSUED PURSUANT THERETO, OR HAS MATERIALLY VIOLATED ANY OTHER LAW
 IN  THE  COURSE OF ITS OR HIS OR HER DEALINGS AS A CONSUMER DEBT COLLEC-
 TOR;
   (C) MADE A FALSE STATEMENT OR MATERIAL OMISSION IN THE APPLICATION FOR
 OR RENEWAL OF A LICENSE UNDER THIS ARTICLE OR  FAILED  TO  GIVE  A  TRUE
 REPLY TO A QUESTION IN SUCH APPLICATION; OR
   (D) DEMONSTRATED INCOMPETENCY OR UNTRUSTWORTHINESS TO ACT AS A CONSUM-
 ER DEBT COLLECTOR.
   2.  THE DEPARTMENT SHALL BEFORE REVOKING OR SUSPENDING ANY LICENSE AND
 AT LEAST FIFTEEN  DAYS PRIOR TO THE DATE SET FOR THE HEARING,  AND  UPON
 DUE NOTICE TO THE COMPLAINANT OR  OBJECTOR, NOTIFY IN WRITING THE HOLDER
 OF  SUCH  LICENSE, OF ANY CHARGE MADE AND SHALL AFFORD  SUCH LICENSEE AN
 OPPORTUNITY TO BE HEARD IN PERSON OR BY COUNSEL  IN  REFERENCE  THERETO.
 SUCH  WRITTEN  NOTICE  MAY  BE  SERVED PERSONALLY TO THE LICENSEE, OR BY
 CERTIFIED MAIL TO THE LAST KNOWN BUSINESS ADDRESS OF SUCH LICENSEE.
   § 304. BAD ACTORS. 1. IN ADDITION TO ANY OTHER POWER PROVIDED BY  LAW,
 THE  SUPERINTENDENT  MAY  REQUIRE  ANY  LICENSEE TO REMOVE ANY DIRECTOR,
 OFFICER OR EMPLOYEE OR TO REFRAIN FROM ENGAGING OR RETAINING  ANY  INDE-
 PENDENT  CONTRACTOR  OR  SERVICE  PROVIDER  IF  SUCH  DIRECTOR, OFFICER,
 EMPLOYEE, INDEPENDENT CONTRACTOR OR SERVICE PROVIDER HAS THEMSELVES  HAD
 A  LICENSE  UNDER  THIS  CHAPTER SUSPENDED OR REVOKED, OR HAS CAUSED THE
 LICENSEE TO VIOLATE ANY PROVISION OF THIS CHAPTER OR REGULATIONS PROMUL-
 GATED THEREUNDER.
   2. NO PERSON THAT IS THE SUBJECT OF AN ORDER UNDER THIS SECTION REMOV-
 ING THEM AS A DIRECTOR, OFFICER OR EMPLOYEE  OR  PREVENTING  A  LICENSEE
 FROM  ENGAGING OR RETAINING THEM AS AN INDEPENDENT CONTRACTOR OR SERVICE
 PROVIDER, SHALL BECOME ENGAGED WITH ANY LICENSEE WITHOUT  OBTAINING  THE
 PRIOR WRITTEN APPROVAL OF THE SUPERINTENDENT. NOR SHALL SUCH PERSON FAIL
 TO DISCLOSE THAT IT IS THE SUBJECT OF AN ORDER UNDER THIS SECTION TO ANY
 LICENSEE  FOR  WHICH IT IS ACTING OR SEEKING TO ACT AS A DIRECTOR, OFFI-
 CER, EMPLOYEE, INDEPENDENT CONTRACTOR OR SERVICE PROVIDER.
   3. ANY CONSUMER DEBT COLLECTOR OR ENTITY CLAIMING  TO  BE  A  CONSUMER
 DEBT  COLLECTOR THAT IS  NOT LICENSED PURSUANT TO THIS ARTICLE AND KNOW-
 INGLY CONDUCTS BUSINESS INVOLVING  CONSUMER  DEBT  COLLECTION  SHALL  BE
 REQUIRED  TO  PAY A CIVIL PENALTY TO THE DEPARTMENT OF NOT MORE THAN THE
 LESSER OF FIVE HUNDRED DOLLARS PER ATTEMPT TO COLLECT A CONSUMER DEBT OR
 ONE HUNDRED THOUSAND DOLLARS IN TOTAL DAMAGES IN VIOLATION OF THIS ARTI-
 CLE.
   § 305. PENALTIES. 1. IN ADDITION TO SUCH PENALTIES AS MAY OTHERWISE BE
 APPLICABLE BY LAW, INCLUDING BUT NOT LIMITED TO THE PENALTIES  AVAILABLE
 UNDER SECTION FORTY-FOUR OF THIS CHAPTER, THE SUPERINTENDENT MAY REQUIRE
 A PERSON OPERATING AS A CONSUMER DEBT COLLECTOR WITHOUT A LICENSE TO PAY
 A. 4088--A                         11
 
 A  CIVIL  PENALTY  TO  THE  DEPARTMENT  A SUM NOT TO EXCEED FIVE HUNDRED
 DOLLARS  PER ATTEMPT TO COLLECT A CONSUMER DEBT  IN  VIOLATION  OF  THIS
 ARTICLE.
   2.  WHENEVER IT APPEARS TO THE ATTORNEY GENERAL, EITHER UPON COMPLAINT
 OR OTHERWISE, THAT ANY PERSON HAS ENGAGED IN ANY OF THE  ACTS  OR  PRAC-
 TICES STATED TO BE UNLAWFUL UNDER THIS ARTICLE, THE ATTORNEY GENERAL MAY
 BRING  AN  ACTION OR SPECIAL PROCEEDING IN THE NAME AND ON BEHALF OF THE
 PEOPLE OF THE STATE OF NEW YORK TO ENJOIN ANY VIOLATION OF THIS ARTICLE,
 TO OBTAIN RESTITUTION OF ANY MONEYS OR  PROPERTY  OBTAINED  DIRECTLY  OR
 INDIRECTLY  BY ANY SUCH VIOLATION, TO OBTAIN DISGORGEMENT OF ANY PROFITS
 OBTAINED DIRECTLY OR INDIRECTLY BY ANY SUCH  VIOLATION,  AND  TO  OBTAIN
 CIVIL  PENALTIES OF NOT MORE THAN THE LESSER OF FIVE HUNDRED DOLLARS PER
 ATTEMPT TO COLLECT A CONSUMER DEBT OR ONE HUNDRED  THOUSAND  DOLLARS  IN
 TOTAL DAMAGES IN VIOLATION OF THIS ARTICLE.
   3.  NOTHING  IN  THIS  ARTICLE SHALL LIMIT ANY STATUTORY OR COMMON-LAW
 RIGHT OF ANY PERSON TO  BRING ANY ACTION IN ANY COURT FOR  ANY  ACT,  OR
 THE  RIGHT  OF  THE STATE TO PUNISH ANY PERSON FOR  ANY VIOLATION OF ANY
 LAW.
   § 306. PREEMPTION. THE PROVISIONS OF THIS  ARTICLE  SHALL  EXCLUSIVELY
 GOVERN  THE  LICENSING  OF  CONSUMER DEBT COLLECTORS IN THE STATE OF NEW
 YORK NOTWITHSTANDING THE PROVISIONS OF ANY   OTHER LAW TO  THE  CONTRARY
 AND  FURTHER,  NO LOCAL LAW SHALL BE ENACTED WHICH SHALL REQUIRE ANY FEE
 OR LICENSE FOR THE LICENSURE OR REGISTRATION OF  CONSUMER  DEBT  COLLEC-
 TORS.
   §  2.  Subdivision  10 of section 36 of the banking law, as amended by
 section 2 of part L of chapter 58 of the laws of  2019,  is  amended  to
 read as follows:
   10. All reports of examinations and investigations, correspondence and
 memoranda  concerning  or  arising  out of such examination and investi-
 gations, including any duly authenticated copy or copies thereof in  the
 possession  of  any  banking  organization,  bank holding company or any
 subsidiary thereof (as such terms "bank holding  company"  and  "subsid-
 iary"  are  defined in article three-A of this chapter), any corporation
 or any other entity affiliated with a banking  organization  within  the
 meaning  of  subdivision six of this section and any non-banking subsid-
 iary of a corporation or any other entity which is  an  affiliate  of  a
 banking  organization  within  the  meaning of subdivision six-a of this
 section, foreign banking corporation, licensed lender,  licensed  casher
 of   checks,  licensed  mortgage  banker,  registered  mortgage  broker,
 licensed mortgage  loan  originator,  licensed  sales  finance  company,
 registered  mortgage  loan  servicer,  licensed  student  loan servicer,
 licensed insurance  premium  finance  agency,  licensed  transmitter  of
 money,  licensed  budget  planner, LICENSED CONSUMER DEBT COLLECTOR, any
 other person or entity subject to supervision under this chapter, OR THE
 FINANCIAL SERVICES LAW OR THE INSURANCE LAW, or the department, shall be
 confidential communications, shall not be subject to subpoena and  shall
 not  be  made  public unless, in the judgment of the superintendent, the
 ends of justice and the public advantage will be subserved by the publi-
 cation thereof, in which event the superintendent may publish or author-
 ize the publication of a copy of any such report or any part thereof  in
 such  manner  as  may  be deemed proper or unless such laws specifically
 authorize  such  disclosure.  For  the  purposes  of  this  subdivision,
 "reports  of examinations and investigations, and any correspondence and
 memoranda concerning or arising out of such  examinations  and  investi-
 gations", includes any such materials of a bank, insurance or securities
 regulatory  agency or any unit of the federal government or that of this
 A. 4088--A                         12
 
 state any other state or  that  of  any  foreign  government  which  are
 considered  confidential  by  such  agency  or unit and which are in the
 possession of the department or which are otherwise confidential materi-
 als that have been shared by the department with any such agency or unit
 and are in the possession of such agency or unit.
   §  3. Paragraph (a) of subdivision 1 of section 44 of the banking law,
 as amended by section 4 of part L of chapter 58 of the laws of 2019,  is
 amended to read as follows:
   (a) Without limiting any power granted to the superintendent under any
 other provision of this chapter, the superintendent may, in a proceeding
 after  notice  and a hearing, require any safe deposit company, licensed
 lender, licensed casher  of  checks,  licensed  sales  finance  company,
 licensed  insurance  premium  finance  agency,  licensed  transmitter of
 money, licensed mortgage banker, licensed student loan servicer,  regis-
 tered  mortgage  broker,  licensed  mortgage loan originator, registered
 mortgage loan servicer, LICENSED CONSUMER  DEBT  COLLECTOR  or  licensed
 budget  planner  to  pay  to  the people of this state a penalty for any
 violation of this chapter, any regulation  promulgated  thereunder,  any
 final  or temporary order issued pursuant to section thirty-nine of this
 article, any condition imposed  in  writing  by  the  superintendent  in
 connection  with the grant of any application or request, or any written
 agreement entered into with the superintendent.
   § 4. The opening paragraph of subdivision (a) of section 3218  of  the
 civil  practice  law and rules, as amended by chapter 311 of the laws of
 1963, is amended to read as follows:
   Except as provided in section thirty-two hundred one OF  THIS  ARTICLE
 AND  SUBDIVISION  (E)  OF  THIS SECTION, a judgment by confession may be
 entered, without an action, either for money due or to become due, or to
 secure the plaintiff against a contingent liability  in  behalf  of  the
 defendant, or both, upon an affidavit executed by the defendant;
   §  5.  Section  3218 of the civil practice law and rules is amended by
 adding a new subdivision (e) to read as follows:
   (E) PROHIBITION ON CERTAIN JUDGMENTS BY CONFESSION. 1. NO JUDGMENT  OF
 CONFESSION  MAY BE ENTERED ON: (I) ANY AMOUNT DUE FROM ONE OR MORE INDI-
 VIDUALS FOR PERSONAL, FAMILY, HOUSEHOLD, CONSUMER, INVESTMENT OR NON-BU-
 SINESS PURPOSES;
   (II) ANY AMOUNT UNDER TWO HUNDRED FIFTY THOUSAND DOLLARS DUE FROM  ANY
 PERSON FOR ANY PURPOSE; OR
   (III) ANY AMOUNT DUE FROM ANY PERSON THAT EITHER: (A) IS CURRENTLY NOT
 A RESIDENT OF THE STATE, (B) WAS NOT A RESIDENT OF THE STATE AT THE TIME
 THE  AFFIDAVIT  AUTHORIZING  THE ENTRY OF THE JUDGMENT OF CONFESSION WAS
 EXECUTED, OR (C) IF NOT A NATURAL PERSON, DOES NOT HAVE A PLACE OF BUSI-
 NESS IN THE STATE OR DID NOT HAVE A PLACE OF BUSINESS IN  THE  STATE  AT
 THE  TIME  THE  AFFIDAVIT  AUTHORIZING  THE  ENTRY  OF  THE  JUDGMENT OF
 CONFESSION WAS EXECUTED.
   2. PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT APPLY TO A JUDGMENT  BY
 CONFESSION  ENTERED  OR  SOUGHT  TO  BE ENTERED BY THE STATE, A DOMESTIC
 MUNICIPAL CORPORATION OR ANY PUBLIC OFFICER  ACTING  IN  THEIR  OFFICIAL
 CAPACITY.
   §  6.  The  civil  practice  law  and rules is amended by adding a new
 section 5022 to read as follows:
   § 5022. JUDGMENTS OBTAINED FROM UNLICENSED CONSUMER  DEBT  COLLECTORS.
 ANY  JUDGMENT  OBTAINED AGAINST A CONSUMER DEBTOR BY, OR ON BEHALF OF, A
 CONSUMER DEBT COLLECTOR ACTING WITHOUT A LICENSE FROM THE SUPERINTENDENT
 OF THE DEPARTMENT OF FINANCIAL SERVICES, WHEN SUCH LICENSE IS  REQUIRED,
 A. 4088--A                         13
 
 IN  VIOLATION  OF SECTION TWO HUNDRED NINETY-SIX OF ARTICLE SEVEN OF THE
 BANKING LAW, SHALL BE NULL AND VOID.
   § 7. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however that sections one, two and
 three of this act shall take effect January 1, 2025.  The superintendent
 of  financial  services  shall  allow  any consumer debt collector which
 submits an application prior to January 1, 2025 to operate  pending  the
 approval or denial of the application.  Effective immediately, the addi-
 tion,  amendment  and/or  repeal of any rule or regulation necessary for
 the implementation of this act on its effective date are  authorized  to
 be  made and completed on or before such effective date.  This act shall
 not affect the validity of any civil actions or  arbitrations  commenced
 or judgments entered prior to January 1, 2025.