NY A10629

Creates new Article 7 in the Financial Services Law regulating student debt consultants operating in New York State.

Prohibits consultants from charging fees before completing services, taking power of attorney, requesting borrower FSA IDs, or misrepresenting affiliation with government agencies or loan servicers.

Requires consultants to disclose in all advertisements that borrowers may obtain Direct Consolidation Loans at no cost from the U.S. Department of Education and should consult their loan servicer before signing documents.

Mandates written contracts witnessed by a notary public with twelve-point type, complete disclosure of services and compensation, and a five-business-day cancellation period with required notice form.

Establishes civil penalties up to $10,000 per violation and allows borrowers to recover actual, consequential, and treble damages plus attorney fees for intentional violations.