2013 New York Consolidated Laws
BNK - Banking
Article 12-C - (579 - 587) BUDGET PLANNERS
584-B - Prohibited activities.

 
    §   584-b.   Prohibited   activities.   1.   No  person,  partnership,
  association, corporation, or other entity, except a licensee,  may  make
  any  representation,  directly  or indirectly, orally or in writing that
  he, she, or it is licensed under this article.
    2. No licensee shall advertise its  services  in  any  media,  whether
  print  or  electronic, in any manner that may be false or deceptive. All
  such advertisements shall contain the name and office  address  of  such
  entity,  which  shall  conform  to a name and address on record with the
  department and which shall indicate that the licensee is licensed by the
  department. Any  advertisements  in  any  media,  print  or  electronic,
  contracted  for  or  placed prior to the effective date of this section,
  shall not be subject to the provisions of this section.
    3. No person or any other entity, other than a licensee, shall use the
  title "budget planner" or "licensed budget planner" or the term  "budget
  planning" in any public advertisement, business card, or letterhead.
    4.  No  licensee shall commingle monies received from debtors with any
  other funds associated with the operation of its business  or  with  any
  funds  associated  with  any  other type of business, provided, however,
  that for the sole purpose of making a single payment to  a  creditor,  a
  licensee  may commingle monies received from debtors under contract with
  one or more of its affiliates authorized to engage in budget planning in
  another state.
    5. Licensees shall make payments to creditors in a timely  manner,  in
  accordance  with  the  contract  between  the  licensee  and the debtor,
  provided, however, that a licensee may contract with a person or  entity
  that   distributes,   or   supervises,   coordinates,  or  controls  the
  distribution of, such payments to the creditors, pursuant to such  terms
  or  conditions  that  the  superintendent  may  prescribe by regulation.
  Payments made pursuant to such contract  with  the  licensee  shall  not
  require  such  person  or  entity  to  be  licensed  pursuant to article
  thirteen-b of this chapter.
    6. No licensee shall purchase any obligation of a debtor.
    7. No licensee shall operate as a person or entity seeking payment  of
  obligations  on  behalf of any creditors that are not receiving payments
  pursuant to a contract between a debtor and a licensee.
    8. No licensee shall execute any contract or agreement to be signed by
  the debtor unless the contract or agreement is fully completed, and  the
  duration  of  any  such  contract  shall  be  in  conformance  with  any
  limitations specified pursuant to regulations of the superintendent.
    9. No licensee shall pay any  bonus  or  other  consideration  to  any
  person or entity for the referral of a debtor to its business, or accept
  or  receive  any  bonus, commission or other consideration for referring
  any debtor to any person or entity for any  reason;  provided,  however,
  that nothing herein shall prohibit the payment of rebates from creditors
  to licensees.
    10.  No  licensee  shall  disclose or threaten to disclose information
  concerning the existence of a debt, or any other  conduct,  which  could
  coerce payment of the debt of a debtor with whom it has a contract.
    11.  No  licensee  shall  use  a  communication which simulates in any
  manner a legal or judicial process, or which gives the false  appearance
  of  being  authorized, issued, or approved by a government, governmental
  agency, or attorney-at-law.
    12. No licensee, or a director, manager or officer of  such  licensee,
  or  any  immediate  family  member  of such individual, or a controlling
  party of such licensee as defined in section five hundred eighty-three-a
  of this article, shall  be  a  director,  manager,  officer,  owner,  or
  controlling  party of any creditor or a subsidiary of any such creditor,

  that is receiving or will receive payments from the licensee  on  behalf
  of a debtor with whom the licensee has contracted.
    13.  No  licensee, or a director, manager or officer of such licensee,
  or any immediate family member of  such  individual,  or  a  controlling
  party of such licensee as defined in section five hundred eighty-three-a
  of  this  article,  shall disclose by any means, directly or indirectly,
  the name, address, or any other identifying  information  of  a  debtor,
  except  as  required  by  subpoena  or  other  process  from  a court of
  competent jurisdiction or a law  enforcement  agency,  or  in  order  to
  establish  an  account  with  a  creditor. "Identifying information of a
  debtor" as used herein shall include, but not be limited to, a  debtor's
  name,  photograph,  address,  telephone  number, social security number,
  date of birth, drivers identification number, credit card  number,  bank
  account number, mother's maiden name, medical or disability information,
  if  any, as well as any other identification number which a licensee may
  possess.