S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    666
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 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. "APPLICANT" MEANS A CONSUMER DEBT COLLECTOR WHO HAS FILED AN APPLI-
 CATION TO OBTAIN A LICENSE UNDER THIS ARTICLE.
   2.  "COMMUNICATION"  AND "COMMUNICATE" MEANS THE CONVEYING OF INFORMA-
 TION REGARDING A DEBT DIRECTLY OR INDIRECTLY TO ANY PERSON  THROUGH  ANY
 MEDIUM.
   3.  "CONSUMER  DEBT"  MEANS ANY OBLIGATION OF A NATURAL PERSON FOR THE
 PAYMENT OF MONEY OR ITS EQUIVALENT WHICH ARISES  OUT  OF  A  TRANSACTION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03040-01-3
              

 S. 666                              2
 
 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.
   4.  "CONSUMER DEBTOR" MEANS ANY NATURAL PERSON WHO OWES OR IS ASSERTED
 TO OWE ANY CONSUMER DEBT.
   5. "CONSUMER DEBT COLLECTOR" MEANS ANY PERSON WHO ENGAGES IN  A  BUSI-
 NESS, A PRINCIPAL PURPOSE OF WHICH IS DEBT BUYING, OR REGULARLY COLLECT-
 ING  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.
   6. "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.
   7. "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.
   8.  "LICENSEE"  MEANS  A CONSUMER DEBT COLLECTOR THAT POSSESSES ONE OR
 MORE LICENSES PURSUANT TO THIS ARTICLE.
   9. "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;
   (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;
 S. 666                              3
 
   (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
 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 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 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;
   (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  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 DEBT WHICH WAS ORIGINATED BY  SUCH
 PERSON; OR (III) 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; 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.
 S. 666                              4
 
   § 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
 AS THE SUPERINTENDENT MAY REQUIRE.  IN ADDITION TO ANY OTHER INFORMATION
 REQUIRED,  THE  SUPERINTENDENT SHALL REQUIRE THE  FOLLOWING INFORMATION,
 AND SHALL, AS APPROPRIATE, 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 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;  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;
   (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 SECRETARY WITH A SUMMARY OF  THE  APPLICANT'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.
   (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
 S. 666                              5
 
 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 TWO YEARS 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.
   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  DEBT  COLLECTION.  THE  SUPERINTENDENT  MAY  ESTABLISH
 REQUIREMENTS  FOR PARTICIPATION BY AN APPLICANT IN A MULTI-STATE LICENS-
 ING 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 INVESTIGATIONS FOR STATE AND
 NATIONAL CRIMINAL HISTORY RECORD CHECKS. IF THE APPLICANT IS A  PARTNER-
 SHIP,  ASSOCIATION,  CORPORATION OR OTHER FORM OF BUSINESS ORGANIZATION,
 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  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.
   11.  EACH  CONSUMER  DEBT  COLLECTOR 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 CONSPICUOUS-
 LY DISPLAYED.
   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;
 S. 666                              6

   (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 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
 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 WHICH IS APPLICABLE TO THE CONSUMER
 DEBT COLLECTOR.
   (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;
   (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  A NEW BOND IS FILED WITH THE DEPARTMENT TO BECOME
 EFFECTIVE AT THE TERMINATION DATE OF THE PRIOR 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.
 S. 666                              7
 
   §  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
 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-
 S. 666                              8
 
 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 VIOLATION OF THE
 FEDERAL FAIR DEBT COLLECTION PRACTICES ACT, ANY OTHER NEW  YORK  LAW  OR
 FEDERAL  LAW  WHICH IS APPLICABLE TO THE CONSUMER DEBT COLLECTOR, 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 PRINCI-
 PAL 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 AND REVOCABLE CONSENT OF THE
 CONSUMER DEBTOR GIVEN DIRECTLY TO THE  DEBT  COLLECTOR  OR  THE  EXPRESS
 PERMISSION OF A COURT OF COMPETENT JURISDICTION, A CONSUMER DEBT COLLEC-
 TOR  MAY  NOT  COMMUNICATE WITH A CONSUMER DEBTOR IN CONNECTION WITH THE
 COLLECTION OF ANY 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 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 POST-
 MERIDIAN, LOCAL TIME AT THE CONSUMER DEBTOR'S LOCATION;
   (II) IF THE DEBT COLLECTOR KNOWS THE CONSUMER DEBTOR IS REPRESENTED BY
 AN ATTORNEY WITH RESPECT TO SUCH DEBT AND HAS KNOWLEDGE OF, OR CAN READ-
 ILY ASCERTAIN, SUCH ATTORNEY'S NAME AND  ADDRESS,  UNLESS  THE  ATTORNEY
 FAILS  TO  RESPOND WITHIN A REASONABLE PERIOD OF TIME TO A COMMUNICATION
 FROM THE DEBT COLLECTOR OR UNLESS THE ATTORNEY CONSENTS TO DIRECT COMMU-
 NICATION WITH THE CONSUMER DEBTOR;
   (III) AT THE CONSUMER DEBTOR'S PLACE OF EMPLOYMENT;
   (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.
   (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 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 SUPERINTEN-
 DENT;
   (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.
 S. 666                              9
 
   § 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
   (C) WHETHER THE ACQUISITION MAY BE HAZARDOUS OR PREJUDICIAL TO 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)  VIOLATED  ANY PROVISIONS OF THIS CHAPTER OR ANY REGULATION ISSUED
 PURSUANT THERETO, OR HAS VIOLATED ANY OTHER LAW IN THE COURSE OF ITS  OR
 HIS OR HER DEALINGS AS A CONSUMER DEBT COLLECTOR;
   (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.
 S. 666                             10
 
   §  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 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 DEBT OR ONE HUNDRED THOU-
 SAND DOLLARS IN TOTAL DAMAGES IN VIOLATION OF THIS ARTICLE.
   § 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  CIVIL  PENALTY  TO  THE  DEPARTMENT  A SUM NOT TO EXCEED FIVE HUNDRED
 DOLLARS  PER ATTEMPT TO COLLECT A 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  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 DEBT COLLECTION AGENCIES 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 DEBT COLLECTION AGEN-
 CIES.
   § 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
 S. 666                             11
 
 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
 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:
   Affidavit  of  defendant.  Except  as  provided  in section thirty-two
 hundred one OF THIS ARTICLE AND SUBDIVISION (E) OF THIS SECTION, a judg-
 ment 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;
 S. 666                             12
 
   §  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,
 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 October 1, 2023. Effective imme-
 diately, the addition, 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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  666--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks -- reported  favora-
   bly  from  said committee and committed to the Committee on Finance --
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03040-05-3
 S. 666--A                           2
              

 
 AND  THE AFFILIATED COMPANY DOES NOT ENGAGE IN ANY COLLECTION ACTIVITIES
 OTHER THAN DEBT BUYING OR DEBT COLLECTION FOR THE LICENSEE.
   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;
 S. 666--A                           3
 
   (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;
   (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;
 S. 666--A                           4
 
   (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
 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;
 S. 666--A                           5
 
   (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
 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
 S. 666--A                           6
 
 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,
 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;
 S. 666--A                           7
 
   (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;
   (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
 S. 666--A                           8
 
 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
 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
 S. 666--A                           9
 
 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
 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
 S. 666--A                          10
 
 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
   (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.
 S. 666--A                          11
 
   § 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  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,
 S. 666--A                          12
 
 "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
 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:
 S. 666--A                          13
 
   §  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,
 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.