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This entry was published on 2020-10-02
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Student debt consulting contracts
Financial Services Law (FIS) CHAPTER 18-A, ARTICLE 7
§ 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

(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:
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:
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
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.