S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4922
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 10, 2025
                                ___________
 
 Introduced  by  M.  of  A.  LEVENBERG,  SIMON,  FORREST, EACHUS, SIMONE,
   BURDICK -- read once and referred to the Committee on Consumer Affairs
   and Protection
 
 AN ACT to amend the general business law and the civil practice law  and
   rules,  in relation to protecting private education loan borrowers and
   cosigners

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 42-A to read as follows:
                               ARTICLE 42-A
                    PRIVATE EDUCATION LOAN PROTECTIONS
 SECTION 1200. DEFINITIONS.
         1201. APPLICABILITY.
         1202. EXEMPT ORGANIZATIONS.
         1203. PROVISIONS APPLICABLE TO COSIGNERS.
         1204. PROHIBITION  ON ACCELERATION OF PAYMENTS ON PRIVATE EDUCA-
                 TION LOANS.
         1205. REQUIRED COMMUNICATIONS FROM CREDITORS  AND  DEBT  COLLEC-
                 TORS.
         1206. REQUIRED  INFORMATION TO BE PROVIDED BY CREDITORS AND DEBT
                 COLLECTORS.
         1207. ENFORCEMENT.
         1208. RULES AND REGULATIONS.
   § 1200. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "PRIVATE EDUCATION LOAN" MEANS AN EXTENSION OF CREDIT THAT:
   (A) IS NOT MADE, INSURED, OR GUARANTEED UNDER TITLE IV OF  THE  HIGHER
 EDUCATION ACT OF 1965 (20 U.S.C. 1070 ET SEQ.);
   (B)  IS  EXTENDED  TO  A  CONSUMER EXPRESSLY, IN WHOLE OR IN PART, FOR
 HIGHER EDUCATION EXPENSES, REGARDLESS OF WHETHER THE LOAN IS PROVIDED BY
 THE EDUCATIONAL INSTITUTION THAT THE STUDENT ATTENDS;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08810-01-5
              

 A. 4922                             2
 
   (C) DOES NOT INCLUDE OPEN-END CREDIT OR ANY LOAN THAT  IS  SECURED  BY
 REAL PROPERTY OR A DWELLING; AND
   (D)  DOES  NOT  INCLUDE  AN  EXTENSION  OF CREDIT IN WHICH THE COVERED
 EDUCATIONAL INSTITUTION IS THE CREDITOR IF:
   (I) THE TERM OF THE EXTENSION OF CREDIT IS NINETY DAYS OR LESS; OR
   (II) AN INTEREST RATE OR FINANCE CHARGE WILL NOT  BE  APPLIED  TO  THE
 CREDIT  BALANCE  AND  THE TERM OF THE EXTENSION OF CREDIT IS ONE YEAR OR
 LESS, EVEN IF THE CREDIT IS PAYABLE IN MORE THAN FOUR INSTALLMENTS.
   2. "PRIVATE EDUCATION LENDER", EXCEPT AS EXEMPTED UNDER THIS  ARTICLE,
 MEANS:
   (A)  ANY PERSON OR ENTITY ENGAGED IN THE BUSINESS OF SECURING, MAKING,
 OR EXTENDING PRIVATE EDUCATION LOANS; OR
   (B) ANY HOLDER OF A PRIVATE EDUCATION LOAN.
   3. "BORROWER" OR "PRIVATE EDUCATION LOAN BORROWER" MEANS A PERSON  WHO
 HAS RECEIVED OR AGREED TO PAY A PRIVATE EDUCATION LOAN FOR SUCH PERSON'S
 OWN EDUCATIONAL EXPENSES.
   4. "COSIGNER" (A) MEANS:
   (I) ANY INDIVIDUAL WHO IS LIABLE FOR THE OBLIGATION OF ANOTHER WITHOUT
 COMPENSATION, REGARDLESS OF HOW DESIGNATED IN THE CONTRACT OR INSTRUMENT
 WITH RESPECT TO THAT OBLIGATION, INCLUDING AN OBLIGATION UNDER A PRIVATE
 EDUCATION LOAN EXTENDED TO CONSOLIDATE A BORROWER'S PRE-EXISTING PRIVATE
 EDUCATION LOANS; AND
   (II) INCLUDES ANY PERSON THE SIGNATURE OF WHICH IS REQUESTED AS CONDI-
 TION TO GRANT CREDIT OR TO FORBEAR ON COLLECTION;
   (B)  DOES  NOT INCLUDE A SPOUSE OF AN INDIVIDUAL DESCRIBED IN SUBPARA-
 GRAPH (I) OF PARAGRAPH (A) OF THIS SUBDIVISION, THE SIGNATURE OF WHOM IS
 NEEDED TO PERFECT THE SECURITY INTEREST IN A LOAN.
   5. "ORIGINAL CREDITOR" MEANS THE PRIVATE EDUCATION  LENDER  IDENTIFIED
 IN A PROMISSORY NOTE, LOAN AGREEMENT, OR LOAN CONTRACT ENTERED INTO WITH
 A PRIVATE EDUCATION LOAN BORROWER OR COSIGNER.
   6. "CREDITOR" MEANS:
   (A) THE ORIGINAL CREDITOR, WHERE OWNERSHIP OF A PRIVATE EDUCATION LOAN
 DEBT HAS NOT BEEN SOLD, ASSIGNED, OR TRANSFERRED;
   (B) THE PERSON OR ENTITY THAT OWNED THE PRIVATE EDUCATION LOAN DEBT AT
 THE TIME THE DEBT BECAME DELINQUENT OR DEFAULTED, EVEN IF THAT PERSON OR
 ENTITY  DID  NOT  ORIGINATE THE PRIVATE EDUCATION LOAN, AND WHERE SUCH A
 DEBT HAS NOT SUBSEQUENTLY BEEN SOLD, TRANSFERRED OR ASSIGNED; OR
   (C) A PERSON OR  ENTITY  THAT  PURCHASED  A  DELINQUENT  OR  DEFAULTED
 PRIVATE EDUCATION LOAN DEBT FOR COLLECTION PURPOSES, WHETHER IT COLLECTS
 THE  DEBT ITSELF, HIRES A THIRD PARTY FOR COLLECTION, OR HIRES AN ATTOR-
 NEY FOR COLLECTION LITIGATION.
   7. "DEBT  COLLECTOR"  MEANS  ANY  PERSON  WHO  REGULARLY  COLLECTS  OR
 ATTEMPTS  TO  COLLECT, DIRECTLY OR INDIRECTLY, CONSUMER DEBTS ORIGINALLY
 OWED OR DUE OR ASSERTED TO BE OWED OR DUE ANOTHER.  THE  TERM  DOES  NOT
 INCLUDE  ANY  OFFICER  OR EMPLOYEE OF A CREDITOR WHO, IN THE NAME OF THE
 CREDITOR, COLLECTS DEBTS FOR SUCH CREDITOR,  BUT  IT  DOES  INCLUDE  ANY
 CREDITOR  WHO, IN THE PROCESS OF COLLECTING ITS OWN DEBTS, USES ANY NAME
 OTHER THAN ITS OWN WHICH WOULD INDICATE THAT A THIRD PERSON IS  COLLECT-
 ING OR ATTEMPTING TO COLLECT SUCH DEBTS.
    8.  "HIGHER  EDUCATION EXPENSE" MEANS ANY EXPENSE ARISING FROM HIGHER
 EDUCATION, AS DEFINED IN SECTION TWO OF THE EDUCATION LAW, REGARDLESS OF
 WHETHER THE HIGHER EDUCATION INSTITUTION IS ACCREDITED WITHIN  NEW  YORK
 STATE.
   §  1201.  APPLICABILITY.  1.  ANY  PERSON OR ENTITY THAT ENTERS INTO A
 CONTRACT OR SUBCONTRACT WITH A PRIVATE EDUCATION LENDER OR  SERVICER  TO
 A. 4922                             3
 
 PERFORM THE SERVICING OF A PRIVATE EDUCATION LOAN MUST FULFILL THE OBLI-
 GATIONS OF THE PRIVATE EDUCATION LENDER UNDER THIS ARTICLE.
   2.  ANY  PRIVATE  EDUCATION  LENDER AS DESCRIBED IN SUBDIVISION TWO OF
 SECTION TWELVE HUNDRED OF THIS ARTICLE BE JOINTLY AND  SEVERALLY  LIABLE
 FOR THE ACTIONS OF THE ENTITY OR PERSON IN FULFILLING THE OBLIGATIONS OF
 THE PRIVATE EDUCATIONAL LENDER OR SERVICER UNDER THIS ARTICLE.
   §  1202.  EXEMPT ORGANIZATIONS. THE FOLLOWING SHALL BE EXEMPT FROM THE
 PROVISIONS OF THIS ARTICLE ONLY TO THE EXTENT THAT STATE  REGULATION  IS
 PREEMPTED BY FEDERAL LAW:
   1.  ANY  BANKING  ORGANIZATION,  FOREIGN BANKING CORPORATION, NATIONAL
 BANK, FEDERAL SAVINGS ASSOCIATION, FEDERAL CREDIT UNION,  OR  ANY  BANK,
 TRUST  COMPANY,  SAVINGS  BANK,  SAVINGS AND LOAN ASSOCIATION, OR CREDIT
 UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE; AND
   2. ANY SUBSIDIARY OF SUCH ENTITIES SET FORTH  IN  SUBDIVISION  ONE  OF
 THIS SECTION.
   § 1203. PROVISIONS APPLICABLE TO COSIGNERS. 1. (A) PRIOR TO THE ORIGI-
 NATION  OF  A PRIVATE EDUCATION LOAN, THE PRIVATE EDUCATION LENDER SHALL
 PROVIDE TO ALL COSIGNER APPLICANTS  INFORMATION  ABOUT  THE  RIGHTS  AND
 RESPONSIBILITIES OF THE COSIGNER OF THE LOAN, INCLUDING:
   (I)  INFORMATION  ABOUT  HOW THE PRIVATE EDUCATION LENDER WILL FURNISH
 INFORMATION ABOUT THE COSIGNER'S PRIVATE EDUCATION  LOAN  OBLIGATION  TO
 CREDIT REPORTING AGENCIES;
   (II)  INFORMATION  ABOUT  HOW  THE  COSIGNER  WILL  BE NOTIFIED IF THE
 PRIVATE EDUCATION LOAN BECOMES DELINQUENT, INCLUDING  HOW  THE  COSIGNER
 CAN  CURE  THE  DELINQUENCY IN ORDER TO AVOID NEGATIVE CREDIT FURNISHING
 AND LOSS OF COSIGNER RELEASE ELIGIBILITY; AND
   (III) INFORMATION ABOUT ELIGIBILITY  FOR  RELEASE  OF  THE  COSIGNER'S
 OBLIGATION  ON  THE  PRIVATE EDUCATION LOAN, INCLUDING NUMBER OF ON-TIME
 PAYMENTS AND ANY OTHER CRITERIA  REQUIRED  TO  APPROVE  THE  RELEASE  OF
 COSIGNER FROM THE LOAN OBLIGATION.
   (B)  LENDERS SHALL SEND BORROWERS AND COSIGNERS ANNUAL WRITTEN NOTICES
 CONTAINING INFORMATION ABOUT COSIGNER RELEASE,  INCLUDING  CRITERIA  THE
 LENDER  REQUIRES  TO APPROVE THE RELEASE OF COSIGNER FROM THE LOAN OBLI-
 GATION AND THE PROCESS FOR APPLYING FOR COSIGNER RELEASE.
   (C) ONCE THE BORROWER  HAS  MET  THE  APPLICABLE  CONSECUTIVE  ON-TIME
 PAYMENT  REQUIREMENT  TO  BE  ELIGIBLE  FOR COSIGNER RELEASE, THE LENDER
 SHALL SEND THE BORROWER AND COSIGNER A WRITTEN NOTIFICATION BY U.S. MAIL
 AND BY ELECTRONIC MAIL, WHERE A BORROWER HAS ELECTED  TO  RECEIVE  ELEC-
 TRONIC COMMUNICATIONS FROM THE LENDER, INFORMING THE BORROWER AND COSIG-
 NER  THAT  SUCH  PERSON  HAS  MET  THE  APPLICABLE  CONSECUTIVE, ON-TIME
 PAYMENTS REQUIREMENT TO BE ELIGIBLE FOR COSIGNER RELEASE. THE  NOTIFICA-
 TION  SHALL  ALSO  INCLUDE  INFORMATION ABOUT ANY ADDITIONAL CRITERIA TO
 QUALIFY FOR COSIGNER RELEASE, AND THE PROCEDURE TO  APPLY  FOR  COSIGNER
 RELEASE.
   (D)  LENDERS  SHALL  PROVIDE WRITTEN NOTICE WITHIN FIFTEEN DAYS TO ANY
 BORROWER WHO APPLIES FOR COSIGNER  RELEASE,  BUT  WHOSE  APPLICATION  IS
 INCOMPLETE.  THE WRITTEN NOTICE MUST INCLUDE A DESCRIPTION OF THE INFOR-
 MATION NEEDED TO CONSIDER THE APPLICATION COMPLETE AND THE DATE BY WHICH
 THE APPLICANT SHOULD FURNISH THE MISSING INFORMATION.
   (E) AFTER A BORROWER  SUBMITS  A  COMPLETE  APPLICATION  FOR  COSIGNER
 RELEASE,  WITHIN  THIRTY  DAYS,  THE  LENDER SHALL SEND THE BORROWER AND
 COSIGNER A WRITTEN NOTICE THAT INFORMS THE BORROWER AND COSIGNER WHETHER
 THE COSIGNER RELEASE APPLICATION HAS BEEN APPROVED  OR  DENIED.  IF  THE
 LENDER  DENIES  A  REQUEST FOR COSIGNER RELEASE, THE LENDER SHALL INFORM
 THE BORROWER OF SUCH PERSON'S RIGHT TO REQUEST ALL DOCUMENTS AND  INFOR-
 MATION  USED  IN THE DETERMINATION, INCLUDING THE CREDIT SCORE THRESHOLD
 A. 4922                             4
 
 USED BY THE LENDER, THE BORROWER'S CONSUMER REPORT, THE BORROWER'S CRED-
 IT SCORE, AND ANY OTHER DOCUMENTS SPECIFIC TO THE BORROWER.  THE  LENDER
 MUST  ALSO  PROVIDE ANY ADVERSE ACTION NOTICES REQUIRED UNDER APPLICABLE
 FEDERAL  LAW  IF THE DENIAL IS BASED IN WHOLE OR IN PART ON ANY INFORMA-
 TION CONTAINED IN A CONSUMER REPORT.
   2. (A) IN RESPONSE  TO  ANY  WRITTEN  OR  ORAL  REQUEST  FOR  COSIGNER
 RELEASE,  LENDERS  SHALL SEND THE INFORMATION DESCRIBED IN PARAGRAPH (B)
 OF SUBDIVISION ONE OF THIS SECTION.
   (B) LENDERS SHALL NOT IMPOSE ANY RESTRICTIONS THAT MAY PERMANENTLY BAR
 A BORROWER FROM QUALIFYING FOR COSIGNER RELEASE,  INCLUDING  RESTRICTING
 THE NUMBER OF TIMES A BORROWER MAY APPLY FOR COSIGNER RELEASE.
   (C) LENDERS SHALL NOT IMPOSE ANY NEGATIVE CONSEQUENCES ON ANY BORROWER
 OR  COSIGNER  DURING THE SIXTY DAYS FOLLOWING THE ISSUANCE OF THE NOTICE
 REQUIRED UNDER PARAGRAPH (D) OF SUBDIVISION  ONE  OF  THIS  SECTION,  OR
 UNTIL THE LENDER MAKES A FINAL DETERMINATION ABOUT A BORROWER'S COSIGNER
 RELEASE APPLICATION. FOR THE PURPOSE OF THIS PARAGRAPH, "NEGATIVE CONSE-
 QUENCES"  INCLUDES,  BUT IS NOT LIMITED TO, THE IMPOSITION OF ADDITIONAL
 ELIGIBILITY CRITERIA, NEGATIVE CREDIT REPORTING,  LOST  ELIGIBILITY  FOR
 COSIGNER RELEASE, LATE FEES, INTEREST CAPITALIZATION, OR OTHER FINANCIAL
 INJURY.
   (D) LENDERS SHALL NOT REQUIRE GREATER THAN TWELVE CONSECUTIVE, ON-TIME
 PAYMENTS AS CRITERIA TO APPLY FOR COSIGNER RELEASE. ANY BORROWER WHO HAS
 PAID  THE EQUIVALENT OF TWELVE MONTHS OF PRINCIPAL AND INTEREST PAYMENTS
 WITHIN ANY TWELVE-MONTH PERIOD WILL BE CONSIDERED TO HAVE SATISFIED  THE
 CONSECUTIVE,  ON-TIME  PAYMENT REQUIREMENT, EVEN IF THE BORROWER HAS NOT
 MADE PAYMENTS MONTHLY DURING THE TWELVE-MONTH PERIOD.
   (E) IF A BORROWER OR COSIGNER REQUESTS  A  CHANGE  THAT  RESTARTS  THE
 COUNT  OF  CONSECUTIVE,  ON-TIME PAYMENTS REQUIRED FOR COSIGNER RELEASE,
 THE LENDER SHALL NOTIFY THE BORROWER AND COSIGNER IN WRITING WITHIN  TEN
 DAYS  OF  THE  IMPACT OF SUCH AN ARRANGEMENT AND PROVIDE THE BORROWER OR
 COSIGNER THE RIGHT TO WITHDRAW OR REVERSE  THE  REQUEST  TO  AVOID  SUCH
 IMPACT.
   (F)  THE  BORROWER  HAS  THE  RIGHT TO REQUEST AN APPEAL OF A LENDER'S
 DETERMINATION TO DENY THE COSIGNER  RELEASE  APPLICATION  WITHIN  NINETY
 DAYS  OF  RECEIVING  THE  LENDER'S  DETERMINATION,  AND THE LENDER SHALL
 PERMIT SUCH BORROWER TO SUBMIT ADDITIONAL DOCUMENTATION EVIDENCING  THAT
 THE  BORROWER HAS THE ABILITY, WILLINGNESS, AND STABILITY TO HANDLE SUCH
 PERSON'S PAYMENT OBLIGATIONS. THE BORROWER MAY  REQUEST  REVIEW  OF  THE
 COSIGNER  RELEASE  DETERMINATION  BY ANOTHER EMPLOYEE.  THE LENDER SHALL
 INFORM THE BORROWER OF THIS RIGHT IN A CLEAR AND CONSPICUOUS  MANNER  ON
 THE NOTICE DENYING THE COSIGNER RELEASE APPLICATION.
   (G)  A  LENDER  MUST  ESTABLISH  AND  MAINTAIN  A COMPREHENSIVE RECORD
 MANAGEMENT SYSTEM REASONABLY DESIGNED TO ENSURE THE ACCURACY, INTEGRITY,
 AND COMPLETENESS OF DATA AND OTHER INFORMATION  ABOUT  COSIGNER  RELEASE
 APPLICATIONS.  THIS  SYSTEM SHALL INCLUDE THE NUMBER OF COSIGNER RELEASE
 APPLICATIONS RECEIVED, THE APPROVAL AND DENIAL  RATE,  AND  THE  PRIMARY
 REASONS FOR ANY DENIAL.
   (H)  IF A COSIGNER HAS A TOTAL AND PERMANENT DISABILITY, AS DETERMINED
 BY ANY FEDERAL AGENCY, STATE AGENCY, OR PHYSICIAN OR DOCTOR OF  OSTEOPA-
 THY  LEGALLY  AUTHORIZED  TO PRACTICE IN THE STATE IN WHICH THE COSIGNER
 RESIDES, THE LENDER SHALL RELEASE THE COSIGNER FROM THE COSIGNER'S OBLI-
 GATION TO REPAY THE LOAN UPON RECEIVING A NOTIFICATION OF THE COSIGNER'S
 TOTAL AND PERMANENT DISABILITY. THE  LENDER  SHALL  NOT  REQUIRE  A  NEW
 COSIGNER  TO  BE  ADDED TO THE LOAN AFTER THE ORIGINAL COSIGNER HAS BEEN
 RELEASED FROM THE LOAN.
 A. 4922                             5
 
   3. (A) A LENDER SHALL PROVIDE A COSIGNER OF A PRIVATE  EDUCATION  LOAN
 WITH  ACCESS TO ALL DOCUMENTS OR RECORDS RELATED TO THE COSIGNED PRIVATE
 EDUCATION LOAN THAT ARE AVAILABLE TO THE BORROWER;
   (B)  IF  A  LENDER PROVIDES ELECTRONIC ACCESS TO DOCUMENTS AND RECORDS
 FOR A BORROWER, IT SHALL PROVIDE EQUIVALENT  ELECTRONIC  ACCESS  TO  THE
 COSIGNER; AND
   (C)  UPON  RECEIVING  NOTICE FROM THE BORROWER OR COSIGNER, THE LENDER
 SHALL REDACT THE CONTACT INFORMATION OF THE OTHER PARTY.
   § 1204. PROHIBITION ON ACCELERATION OF PAYMENTS ON  PRIVATE  EDUCATION
 LOANS.  1.  EXCEPT  AS  PROVIDED  IN  SUBDIVISION TWO OF THIS SECTION, A
 PRIVATE EDUCATION LOAN EXECUTED AFTER THE EFFECTIVE DATE OF THIS ARTICLE
 MAY NOT INCLUDE A PROVISION THAT PERMITS THE PRIVATE EDUCATIONAL  LENDER
 TO  ACCELERATE,  IN  WHOLE OR IN PART, PAYMENTS ON THE PRIVATE EDUCATION
 LOAN.
   2. A PRIVATE EDUCATION LOAN  MAY  INCLUDE  A  PROVISION  THAT  PERMITS
 ACCELERATION OF THE LOAN IN CASES OF PAYMENT DEFAULT.
   3. A LENDER SHALL NOT PLACE ANY LOAN OR ACCOUNT INTO DEFAULT OR ACCEL-
 ERATE A LOAN FOR ANY REASON, OTHER THAN FOR FAILURE TO PAY.
   4.  (A)  IN  THE  EVENT OF THE DEATH OF A COSIGNER, A LENDER SHALL NOT
 ATTEMPT TO COLLECT AGAINST THE COSIGNER'S ESTATE, OTHER THAN FOR FAILURE
 TO PAY.
   (B) UPON RECEIVING NOTIFICATION OF THE DEATH OR BANKRUPTCY OF A COSIG-
 NER, WHEN THE LOAN IS NOT MORE THAN SIXTY DAYS DELINQUENT AT THE TIME OF
 THE NOTIFICATION, A LENDER SHALL NOT CHANGE ANY TERMS OR BENEFITS  UNDER
 THE  PROMISSORY  NOTE,  REPAYMENT  SCHEDULE, REPAYMENT TERMS, OR MONTHLY
 PAYMENT AMOUNT OR ANY OTHER PROVISION ASSOCIATED WITH THE LOAN.
   (C) A LENDER SHALL NOT PLACE ANY  LOAN  OR  ACCOUNT  INTO  DEFAULT  OR
 ACCELERATE A LOAN FOR ANY REASON, OTHER THAN FOR FAILURE TO PAY.
   §  1205.  REQUIRED  COMMUNICATIONS FROM CREDITORS AND DEBT COLLECTORS.
 IN ADDITION TO ANY OTHER INFORMATION REQUIRED UNDER  APPLICABLE  FEDERAL
 OR STATE LAW, A CREDITOR OR DEBT COLLECTOR SHALL PROVIDE, IN WRITING, IN
 THE  FIRST DEBT COLLECTION COMMUNICATION WITH THE PRIVATE EDUCATION LOAN
 BORROWER OR COSIGNER, OR WITHIN FIVE DAYS THEREAFTER, AND AT  ANY  OTHER
 TIME THE BORROWER OR COSIGNER REQUESTS SUCH DOCUMENTATION:
   1. THE NAME OF THE CURRENT OWNER OF THE PRIVATE EDUCATION LOAN DEBT;
   2.  THE  ORIGINAL  CREDITOR'S  NAME AT THE TIME OF ORIGINATION AND, IF
 DIFFERENT, AT THE TIME OF SALE OF THE LOAN, IF APPLICABLE;
   3. THE ORIGINAL CREDITOR'S ACCOUNT NUMBER USED TO IDENTIFY THE PRIVATE
 EDUCATION LOAN DEBT AT THE TIME OF SALE, IF APPLICABLE;
   4. THE TOTAL OUTSTANDING AMOUNT OWED AT THE TIME  OF  DEFAULT  OR  THE
 AMOUNT  DUE TO BRING THE LOAN CURRENT IF THE LOAN IS DELINQUENT, BUT NOT
 YET IN DEFAULT;
   5. A SCHEDULE OF ALL TRANSACTIONS CREDITED OR DEBITED TO  THE  PRIVATE
 EDUCATION LOAN ACCOUNT;
   6. A COPY OF ALL PAGES OF THE CONTRACT, APPLICATION OR OTHER DOCUMENTS
 STATING  ALL  TERMS  AND  CONDITIONS APPLICABLE TO THE PRIVATE EDUCATION
 LOAN AND EVIDENCING THE PRIVATE EDUCATION LOAN BORROWER'S OR  COSIGNER'S
 LIABILITY FOR THE PRIVATE EDUCATION LOAN; AND
   7.  A  CLEAR AND CONSPICUOUS STATEMENT DISCLOSING THAT THE BORROWER OR
 COSIGNER HAS A RIGHT TO REQUEST ALL INFORMATION POSSESSED BY THE  CREDI-
 TOR  RELATED  TO  THE  PRIVATE  EDUCATION  LOAN DEBT, INCLUDING, BUT NOT
 LIMITED TO THE INFORMATION INCLUDED IN SECTION  TWELVE  HUNDRED  SIX  OF
 THIS ARTICLE.
   §  1206.  REQUIRED  INFORMATION  TO  BE PROVIDED BY CREDITORS AND DEBT
 COLLECTORS. 1. A CREDITOR OR DEBT COLLECTOR MAY NOT COLLECT  OR  ATTEMPT
 A. 4922                             6
 
 TO  COLLECT  A  PRIVATE  EDUCATION LOAN DEBT UNLESS THE CREDITOR OR DEBT
 COLLECTOR POSSESSES THE FOLLOWING:
   (A) THE NAME OF THE OWNER OF THE PRIVATE EDUCATION LOAN;
   (B)  THE  ORIGINAL  CREDITOR'S NAME AT THE TIME OF SALE OF THE LOAN OR
 DEFAULT, IF APPLICABLE;
   (C) THE ORIGINAL  CREDITOR'S  ACCOUNT  NUMBER  USED  TO  IDENTIFY  THE
 PRIVATE  EDUCATION  LOAN AT THE TIME OF SALE OR DEFAULT, IF THE ORIGINAL
 CREDITOR USED AN ACCOUNT NUMBER TO IDENTIFY THE PRIVATE  EDUCATION  LOAN
 AT THE TIME OF SALE OR DEFAULT;
   (D) THE AMOUNT DUE AT THE TIME OF SALE, OR AT DEFAULT, OR, IF THE LOAN
 IS DELINQUENT, TO BRING THE LOAN CURRENT;
   (E)  A SCHEDULE OF ALL TRANSACTIONS CREDITED OR DEBITED TO THE PRIVATE
 EDUCATION LOAN ACCOUNT;
   (F) AN ITEMIZATION OF INTEREST AND FEES, IF ANY, CLAIMED  TO  BE  OWED
 AND  WHETHER  THOSE  WERE IMPOSED BY THE ORIGINAL CREDITOR OR ANY SUBSE-
 QUENT OWNERS OF THE PRIVATE EDUCATION LOAN;
   (G) THE DATE THAT THE PRIVATE EDUCATION LOAN WAS INCURRED;
   (H) A BILLING STATEMENT OR OTHER ACCOUNT RECORD INDICATING THE DATE OF
 THE FIRST PARTIAL PAYMENT AND/OR  THE  FIRST  DAY  THAT  A  PAYMENT  WAS
 MISSED, WHICHEVER IS EARLIER;
   (I) A BILLING STATEMENT OR OTHER ACCOUNT RECORD INDICATING THE DATE OF
 THE LAST PAYMENT MADE BY THE BORROWER OR COSIGNER, IF APPLICABLE;
   (J)  ANY  PAYMENTS,  SETTLEMENT, OR FINANCIAL REMUNERATION OF ANY KIND
 PAID TO THE CREDITOR BY A GUARANTOR, COSIGNER, OR SURETY, AND THE AMOUNT
 OF PAYMENT RECEIVED;
   (K) A COPY OF THE SELF-CERTIFICATION FORM AND ANY OTHER "NEEDS  ANALY-
 SIS"  CONDUCTED  BY  THE  ORIGINAL  CREDITOR PRIOR TO ORIGINATION OF THE
 LOAN;
   (L) A LOG OF ALL COLLECTION  ATTEMPTS  MADE  IN  THE  PREVIOUS  TWELVE
 MONTHS INCLUDING DATE AND TIME OF ALL CALLS AND WRITTEN COMMUNICATIONS;
   (M)  COPIES  OF  ALL WRITTEN SETTLEMENT OFFERS SENT IN THE LAST TWELVE
 MONTHS, OR, IN THE ALTERNATIVE, A STATEMENT THAT THE  CREDITOR  HAS  NOT
 ATTEMPTED TO SETTLE OR OTHERWISE RENEGOTIATE THE DEBT PRIOR TO SUIT;
   (N) COPIES OF ALL COLLECTION LETTERS SENT TO THE BORROWER AND COSIGNER
 SINCE INCEPTION OF THE LOAN;
   (O)  DOCUMENTATION  ESTABLISHING THAT THE CREDITOR IS THE OWNER OF THE
 SPECIFIC INDIVIDUAL PRIVATE EDUCATION LOAN  AT  ISSUE.  IF  THE  PRIVATE
 EDUCATION  LOAN  WAS  ASSIGNED MORE THAN ONCE, THE CREDITOR MUST POSSESS
 EACH ASSIGNMENT OR OTHER WRITING EVIDENCING THE TRANSFER OF OWNERSHIP OF
 THE SPECIFIC INDIVIDUAL PRIVATE EDUCATION LOAN TO ESTABLISH AN  UNBROKEN
 CHAIN  OF  OWNERSHIP,  BEGINNING WITH THE ORIGINAL CREDITOR TO THE FIRST
 SUBSEQUENT CREDITOR AND EACH ADDITIONAL  CREDITOR.  EACH  ASSIGNMENT  OR
 OTHER  WRITING  EVIDENCING TRANSFER OF OWNERSHIP OR THE RIGHT TO COLLECT
 MUST CONTAIN THE ORIGINAL CREDITOR'S ACCOUNT NUMBER (REDACTED FOR  SECU-
 RITY  PURPOSES  TO SHOW ONLY THE LAST FOUR DIGITS) OF THE PRIVATE EDUCA-
 TION LOAN PURCHASED OR OTHERWISE ASSIGNED,  THE  DATE  OF  PURCHASE  AND
 ASSIGNMENT,  AND  MUST  CLEARLY  SHOW THE BORROWER'S, AND IF APPLICABLE,
 COSIGNER'S CORRECT NAME ASSOCIATED WITH THE ORIGINAL ACCOUNT NUMBER. THE
 ASSIGNMENT OR OTHER WRITING ATTACHED SHALL BE THAT BY WHICH THE CREDITOR
 OR OTHER ASSIGNEE ACQUIRED THE PRIVATE EDUCATION LOAN,  NOT  A  DOCUMENT
 PREPARED FOR LITIGATION OR COLLECTION PURPOSES;
   (P)  A  COPY  OF ALL PAGES OF THE CONTRACT, APPLICATION OR OTHER DOCU-
 MENTS EVIDENCING THE PRIVATE EDUCATION LOAN BORROWER'S, AND IF  APPLICA-
 BLE,  COSIGNER'S  LIABILITY  FOR THE PRIVATE EDUCATION LOAN, STATING ALL
 TERMS AND CONDITIONS APPLICABLE TO THE PRIVATE EDUCATION LOAN; AND
 A. 4922                             7
 
   (Q) A SIGNED AFFIDAVIT OR AFFIDAVITS FROM EACH OF THE PREVIOUS  OWNERS
 OF THE PRIVATE EDUCATION LOAN REGARDING WHEN THE PREVIOUS OWNER ACCELER-
 ATED  THE LOAN FROM DELINQUENCY STATUS TO DEFAULT STATUS, OR IF APPLICA-
 BLE, A STATEMENT THAT NO SUCH ACCELERATION OCCURRED.
   2.  UPON  WRITTEN  OR ORAL REQUEST FROM A BORROWER OR COSIGNER FOR ANY
 INFORMATION THAT A CREDITOR OR DEBT COLLECTOR  IS  REQUIRED  TO  POSSESS
 PURSUANT  TO SUBDIVISION ONE OF THIS SECTION, A CREDITOR OR DEBT COLLEC-
 TOR SHALL SEND THE REQUESTED INFORMATION TO  THE  BORROWER  OR  COSIGNER
 WITHIN FIFTEEN DAYS OF RECEIPT OF THE REQUEST.
   §  1207.  ENFORCEMENT. 1. ALL PRIVATE EDUCATION LENDERS, CREDITORS AND
 DEBT COLLECTORS SHALL COMPLY WITH THE PROVISIONS OF THIS ARTICLE.
   2. WHENEVER IT APPEARS TO THE ATTORNEY GENERAL, EITHER UPON  COMPLAINT
 OR  OTHERWISE,  THAT  ANY  PERSON  OR PERSONS, HAVE SUFFERED DAMAGE AS A
 RESULT OF A VIOLATION OF THIS ARTICLE BY  A  PRIVATE  EDUCATION  LENDER,
 CREDITOR,  OR  DEBT  COLLECTOR COVERED BY THESE PROVISIONS, 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 RECOVER OR OBTAIN ANY OF THE FOLLOWING:
   (A) ACTUAL DAMAGES;
   (B)  CORRECTION  OF  ANY INACCURATE, NEGATIVE REPORTING BY THE LENDER,
 CREDITOR, OR DEBT COLLECTOR TO ANY CREDIT REPORTING AGENCY;
   (C) INJUNCTIVE RELIEF; AND
   (D) ANY OTHER RELIEF THAT THE COURT DEEMS PROPER.
   § 1208. RULES AND REGULATIONS. IN  ADDITION  TO  SUCH  POWERS  AS  MAY
 OTHERWISE  BE PRESCRIBED BY THIS CHAPTER, THE ATTORNEY GENERAL IS HEREBY
 AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY
 IN THE JUDGMENT OF THE ATTORNEY GENERAL BE CONSISTENT WITH THE  PURPOSES
 OF THIS ARTICLE, OR APPROPRIATE FOR THE EFFECTIVE ADMINISTRATION OF THIS
 ARTICLE, INCLUDING, BUT NOT LIMITED TO:
   (A)  SUCH  RULES  AND REGULATIONS IN CONNECTION WITH THE ACTIVITIES OF
 PRIVATE EDUCATION LENDERS, CREDITORS, AND  DEBT  COLLECTORS  AS  MAY  BE
 NECESSARY AND APPROPRIATE FOR THE PROTECTION OF BORROWERS IN THIS STATE;
   (B)  SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE TO
 DEFINE UNFAIR, DECEPTIVE OR ABUSIVE ACTS OR PRACTICES IN CONNECTION WITH
 THE ACTIVITIES OF PRIVATE EDUCATION LENDERS, CREDITORS, AND DEBT COLLEC-
 TORS;
   (C) SUCH RULES AND REGULATIONS AS MAY DEFINE THE TERMS  USED  IN  THIS
 ARTICLE  AND AS MAY BE NECESSARY AND APPROPRIATE TO INTERPRET AND IMPLE-
 MENT THE PROVISIONS OF THIS ARTICLE; AND
   (D) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE ENFORCEMENT
 OF THIS ARTICLE.
   § 2. Subdivision (q-1) of section 105 of the civil  practice  law  and
 rules,  as  added by chapter 593 of the laws of 2021, is amended to read
 as follows:
   (q-1) Original creditor. The term "original creditor" means the entity
 that owned a consumer credit account at the date of default giving  rise
 to  a  cause  of action, EXCEPT THAT IF THE CONSUMER CREDIT ACCOUNT IS A
 PRIVATE EDUCATION LOAN, AS DEFINED IN SUBDIVISION ONE OF SECTION  TWELVE
 HUNDRED  OF  THE  GENERAL  BUSINESS  LAW,  "ORIGINAL CREDITOR" MEANS THE
 PRIVATE EDUCATION LENDER IDENTIFIED IN A PROMISSORY  NOTE,  LOAN  AGREE-
 MENT,  OR  LOAN  CONTRACT  ENTERED  INTO  WITH  A PRIVATE EDUCATION LOAN
 BORROWER OR COSIGNER.
   § 3. Severability. If any clause,  sentence,  paragraph,  subdivision,
 section  or part of this act shall be adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder thereof, but shall be confined in its operation
 A. 4922                             8
 
 to the clause, sentence, paragraph, subdivision, section or part thereof
 directly  involved  in the controversy in which such judgment shall have
 been rendered. It is hereby declared to be the intent of the legislature
 that  this  act  would have been enacted even if such invalid provisions
 had not been included herein.
   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.