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--B
 
                        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 -- recommitted to the Committee on Banks
   in  accordance  with  Senate Rule 6, sec. 8 -- reported favorably 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.
   § 295. DEFINITIONS. AS USED IN THIS ARTICLE:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03040-15-4
 S. 666--B                           2
              

   1. "AFFILIATED COMPANY" MEANS  A  CONSUMER  DEBT  COLLECTOR  OPERATING
 UNDER  THE  CONTROL  OF A LICENSEE, PROVIDED THAT THE AFFILIATED COMPANY
 SHARES COMMON FACILITIES, MANAGEMENT, AND OPERATIONS WITH  THE  LICENSEE
 AND  THE AFFILIATED COMPANY DOES NOT ENGAGE IN ANY COLLECTION ACTIVITIES
 OTHER THAN DEBT BUYING OR DEBT COLLECTION FOR THE LICENSEE.
   2. "APPLICANT" MEANS A CONSUMER DEBT COLLECTOR WHO HAS FILED AN APPLI-
 CATION TO OBTAIN A LICENSE UNDER THIS ARTICLE.
   3.  "ATTORNEY-AT-LAW"  AND "LAW FIRM" MEANS ANY ATTORNEY-AT-LAW OR LAW
 FIRM RETAINED BY A CLIENT FOR THE PURPOSE OF LITIGATION AND REPRESENTING
 SUCH CLIENT THROUGH ACTIVITIES THAT MAY ONLY BE PERFORMED BY A  LICENSED
 ATTORNEY, INCLUDING ACTING PURSUANT TO LAW OR REGULATION BY CONTACTING A
 CONSUMER  DEBTOR  IN  THE  COURSE OF THE REPRESENTATION REGARDING ANTIC-
 IPATED, PENDING, OR PREVIOUS LITIGATION.
   4. "COMMUNICATION" AND "COMMUNICATE" MEANS THE CONVEYING  OF  INFORMA-
 TION  REGARDING  A  CONSUMER  DEBT  DIRECTLY OR INDIRECTLY TO ANY PERSON
 THROUGH ANY MEDIUM.
   5. "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.
   6. "CONSUMER DEBTOR" MEANS ANY NATURAL PERSON WHO OWES OR IS  ASSERTED
 TO OWE ANY CONSUMER DEBT.
   7.  "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.
   8. "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.
   9. "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.
   10. "LICENSEE" MEANS A CONSUMER DEBT COLLECTOR THAT POSSESSES  ONE  OR
 MORE LICENSES PURSUANT TO THIS ARTICLE.
   11.  "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
 S. 666--B                           3
 
 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;
   (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;
 S. 666--B                           4
 
   (L) ANY PERSON EMPLOYED BY A UTILITY REGULATED UNDER THE PROVISIONS OF
 THE PUBLIC SERVICE LAW, ACTING FOR SUCH UTILITY;
   (M)  ANY  PERSON COLLECTING OR ATTEMPTING TO COLLECT ANY CONSUMER DEBT
 OWED OR DUE OR ASSERTED TO BE OWED OR DUE ANOTHER  TO  THE  EXTENT  SUCH
 ACTIVITY:  (I)  IS  INCIDENTAL TO A BONA FIDE FIDUCIARY  OBLIGATION OR A
 BONA FIDE ESCROW AGREEMENT; (II) CONCERNS  A  CONSUMER  DEBT  WHICH  WAS
 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 THEIR OFFI-
 CIAL 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-
 S. 666--B                           5
 
 TORILY  EXEMPT INCOME AS DEFINED IN SECTION FIFTY-TWO HUNDRED TWENTY-TWO
 OF THE CIVIL PRACTICE LAW AND RULES;
   (X) WHETHER THE APPLICANT REGULARLY SELLS, OR INTENDS TO SELL, CONSUM-
 ER  DEBTS.  IF THE APPLICANT   SELLS, OR INTENDS TO SELL CONSUMER DEBTS,
 SUCH APPLICANT SHALL BE REQUIRED TO PROVIDE THE  SUPERINTENDENT  WITH  A
 SUMMARY  OF  THE  APPLICANT'S  POLICY  WITH  RESPECT  TO THE INFORMATION
 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 SUCH SUPERINTENDENT  IS  NOT
 SATISFIED  THAT  THE  FINANCIAL  RESPONSIBILITY,  CHARACTER, REPUTATION,
 INTEGRITY AND GENERAL FITNESS OF THE APPLICANT AND OF THE OWNERS,  PART-
 NERS  OR  MEMBERS  THEREOF, IF THE APPLICANT BE A PARTNERSHIP OR ASSOCI-
 ATION, AND OF THE OFFICERS AND DIRECTORS, IF THE APPLICANT BE  A  CORPO-
 RATION,  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 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.  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
 S. 666--B                           6
 
 FOR A CONSUMER DEBT COLLECTOR LICENSE BY  MEANS  OF  FINGERPRINT,  WHICH
 SHALL  BE SUBMITTED BY ALL APPLICANTS SIMULTANEOUSLY WITH AN APPLICATION
 AND WHICH THE SUPERINTENDENT MAY SUBMIT  TO  THE  DIVISION  OF  CRIMINAL
 JUSTICE  SERVICES  AND THE FEDERAL BUREAU OF INVESTIGATION FOR STATE AND
 NATIONAL CRIMINAL HISTORY RECORD CHECKS. IF THE APPLICANT IS A  PARTNER-
 SHIP,  ASSOCIATION,  CORPORATION OR OTHER FORM OF BUSINESS ORGANIZATION,
 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 THEIR LICENSE NUMBER UPON THE REQUEST  OF  ANY  INTER-
 ESTED  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  THEIR  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 THEIR 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;
 S. 666--B                           7
 
   (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 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  THEIR
 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.
 S. 666--B                           8
 
   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-
 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 THEIR 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
 S. 666--B                           9
 
 CONSUMER  DEBTOR  IS  AFTER  EIGHT  O'CLOCK ANTEMERIDIAN AND BEFORE NINE
 O'CLOCK POSTMERIDIAN, LOCAL TIME  AT  THE  CONSUMER  DEBTOR'S  LOCATION.
 UNLESS  THE  CONSUMER  DEBTOR  IS  KNOWN TO BE IN ANOTHER TIME ZONE, THE
 CONSUMER  DEBT  COLLECTOR  CAN  RELY  ON THE LOCAL TIME OF THE AREA CODE
 DIALED IN DETERMINING THE CONVENIENT TIME FOR COMMUNICATION;
   (II) IF THE CONSUMER DEBT  COLLECTOR  KNOWS  THE  CONSUMER  DEBTOR  IS
 REPRESENTED  BY  AN  ATTORNEY WITH RESPECT TO SUCH CONSUMER DEBT AND HAS
 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 1006 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
 S. 666--B                          10
 
 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 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 THEIR 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.
   § 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
 S. 666--B                          11
 
 ONE HUNDRED THOUSAND DOLLARS IN TOTAL DAMAGES IN VIOLATION OF THIS ARTI-
 CLE.
   § 305. PENALTIES. 1. IN ADDITION TO SUCH PENALTIES AS MAY OTHERWISE BE
 APPLICABLE  BY LAW, INCLUDING BUT NOT LIMITED TO THE PENALTIES AVAILABLE
 UNDER SECTION FORTY-FOUR OF THIS CHAPTER, THE SUPERINTENDENT MAY REQUIRE
 A PERSON OPERATING AS A CONSUMER DEBT COLLECTOR WITHOUT A LICENSE TO PAY
 A 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.
   §  2.  Subdivision  10 of section 36 of the banking law, as amended by
 section 2 of part L of chapter 58 of the laws of  2019,  is  amended  to
 read as follows:
   10. All reports of examinations and investigations, correspondence and
 memoranda  concerning  or  arising  out of such examination and investi-
 gations, including any duly authenticated copy or copies thereof in  the
 possession  of  any  banking  organization,  bank holding company or any
 subsidiary thereof (as such terms "bank holding  company"  and  "subsid-
 iary"  are  defined in article three-A of this chapter), any corporation
 or any other entity affiliated with a banking  organization  within  the
 meaning  of  subdivision six of this section and any non-banking subsid-
 iary of a corporation or any other entity which is  an  affiliate  of  a
 banking  organization  within  the  meaning of subdivision six-a of this
 section, foreign banking corporation, licensed lender,  licensed  casher
 of   checks,  licensed  mortgage  banker,  registered  mortgage  broker,
 licensed mortgage  loan  originator,  licensed  sales  finance  company,
 registered  mortgage  loan  servicer,  licensed  student  loan servicer,
 licensed insurance  premium  finance  agency,  licensed  transmitter  of
 money,  licensed  budget  planner, LICENSED CONSUMER DEBT COLLECTOR, any
 other person or entity subject to supervision under this chapter, OR THE
 FINANCIAL SERVICES LAW OR THE INSURANCE LAW, or the department, shall be
 confidential communications, shall not be subject to subpoena and  shall
 not  be  made  public unless, in the judgment of the superintendent, the
 ends of justice and the public advantage will be subserved by the publi-
 cation thereof, in which event the superintendent may publish or author-
 ize the publication of a copy of any such report or any part thereof  in
 such  manner  as  may  be deemed proper or unless such laws specifically
 authorize  such  disclosure.  For  the  purposes  of  this  subdivision,
 "reports  of examinations and investigations, and any correspondence and
 memoranda concerning or arising out of such  examinations  and  investi-
 gations", includes any such materials of a bank, insurance or securities
 regulatory  agency or any unit of the federal government or that of this
 S. 666--B                          12
 
 state any other state or  that  of  any  foreign  government  which  are
 considered  confidential  by  such  agency  or unit and which are in the
 possession of the department or which are otherwise confidential materi-
 als that have been shared by the department with any such agency or unit
 and are in the possession of such agency or unit.
   §  3. Paragraph (a) of subdivision 1 of section 44 of the banking law,
 as amended by section 4 of part L of chapter 58 of the laws of 2019,  is
 amended to read as follows:
   (a) Without limiting any power granted to the superintendent under any
 other provision of this chapter, the superintendent may, in a proceeding
 after  notice  and a hearing, require any safe deposit company, licensed
 lender, licensed casher  of  checks,  licensed  sales  finance  company,
 licensed  insurance  premium  finance  agency,  licensed  transmitter of
 money, licensed mortgage banker, licensed student loan servicer,  regis-
 tered  mortgage  broker,  licensed  mortgage loan originator, registered
 mortgage loan servicer, LICENSED CONSUMER  DEBT  COLLECTOR  or  licensed
 budget  planner  to  pay  to  the people of this state a penalty for any
 violation of this chapter, any regulation  promulgated  thereunder,  any
 final  or temporary order issued pursuant to section thirty-nine of this
 article, any condition imposed  in  writing  by  the  superintendent  in
 connection  with the grant of any application or request, or any written
 agreement entered into with the superintendent.
   § 4. The opening paragraph of subdivision (a) of section 3218  of  the
 civil  practice  law and rules, as amended by chapter 311 of the laws of
 1963, is amended to read as follows:
   Except as provided in section thirty-two hundred one OF  THIS  ARTICLE
 AND  SUBDIVISION  (E)  OF  THIS SECTION, a judgment by confession may be
 entered, without an action, either for money due or to become due, or to
 secure the plaintiff against a contingent liability  in  behalf  of  the
 defendant, or both, upon an affidavit executed by the defendant;
   §  5.  Section  3218 of the civil practice law and rules is amended by
 adding a new subdivision (e) to read as follows:
   (E) PROHIBITION ON CERTAIN JUDGMENTS BY CONFESSION. 1. NO JUDGMENT  OF
 CONFESSION  MAY BE ENTERED ON: (I) ANY AMOUNT DUE FROM ONE OR MORE INDI-
 VIDUALS FOR PERSONAL, FAMILY, HOUSEHOLD, CONSUMER, INVESTMENT OR NON-BU-
 SINESS PURPOSES;
   (II) ANY AMOUNT UNDER TWO HUNDRED FIFTY THOUSAND DOLLARS DUE FROM  ANY
 PERSON FOR ANY PURPOSE; OR
   (III) ANY AMOUNT DUE FROM ANY PERSON THAT EITHER: (A) IS CURRENTLY NOT
 A RESIDENT OF THE STATE, (B) WAS NOT A RESIDENT OF THE STATE AT THE TIME
 THE  AFFIDAVIT  AUTHORIZING  THE ENTRY OF THE JUDGMENT OF CONFESSION WAS
 EXECUTED, OR (C) IF NOT A NATURAL PERSON, DOES NOT HAVE A PLACE OF BUSI-
 NESS IN THE STATE OR DID NOT HAVE A PLACE OF BUSINESS IN  THE  STATE  AT
 THE  TIME  THE  AFFIDAVIT  AUTHORIZING  THE  ENTRY  OF  THE  JUDGMENT OF
 CONFESSION WAS EXECUTED.
   2. PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT APPLY TO A JUDGMENT  BY
 CONFESSION  ENTERED  OR  SOUGHT  TO  BE ENTERED BY THE STATE, A DOMESTIC
 MUNICIPAL CORPORATION OR ANY PUBLIC OFFICER  ACTING  IN  THEIR  OFFICIAL
 CAPACITY.
   §  6.  The  civil  practice  law  and rules is amended by adding a new
 section 5022 to read as follows:
   § 5022. JUDGMENTS OBTAINED FROM UNLICENSED CONSUMER  DEBT  COLLECTORS.
 ANY  JUDGMENT  OBTAINED AGAINST A CONSUMER DEBTOR BY, OR ON BEHALF OF, A
 CONSUMER DEBT COLLECTOR ACTING WITHOUT A LICENSE FROM THE SUPERINTENDENT
 OF THE DEPARTMENT OF FINANCIAL SERVICES, WHEN SUCH LICENSE IS  REQUIRED,
 S. 666--B                          13
 
 IN VIOLATION OF SECTION TWO HUNDRED NINETY-SIX 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, 2026.  The superintendent
 of  financial  services  shall  allow  any consumer debt collector which
 submits an application prior to January 1, 2026 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, 2026.