S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   598

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
  tee on Consumer Affairs and Protection

AN  ACT to amend the general business law, in relation to the operations
  of credit services businesses

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  458-a  of the general business law is amended by
adding a new subdivision 3 to read as follows:
  3.  THIS  ARTICLE  SHALL  BE  CONSTRUED  LIBERALLY  TO  ACHIEVE  THESE
PURPOSES.
  S  2.  Section  458-b of the general business law, as added by chapter
386 of the laws of 1986, is amended to read as follows:
  S 458-b. Definitions. As used in this article:
  1. "Credit services business" means any person who sells, provides, or
performs, or represents that he can or will sell, provide or perform,  a
service  for  the  express  or implied purpose of improving a consumer's
credit record, history, or rating or providing advice or assistance to a
consumer with regard to the consumer's credit record history  or  rating
in return for the payment of a fee OR OTHER VALUABLE CONSIDERATION.
  "Credit services business" does not include any of the following:
  (a) Any type B not-for-profit corporation licensed pursuant to article
twelve-c of the banking law.
  (b) Any person admitted to practice law in this state where the person
renders  services  within the course and scope of his or her practice as
an attorney at law.
  (C) ANY PERSON HOLDING A LICENSE TO MAKE LOANS OR EXTENSIONS OF CREDIT
PURSUANT TO THE LAWS OF THIS STATE OR THE UNITED STATES WHO  IS  SUBJECT
TO  REGULATION AND SUPERVISION WITH RESPECT TO THE MAKING OF THOSE LOANS
OR EXTENSIONS OF CREDIT BY AN OFFICIAL OR AGENCY OF THIS  STATE  OR  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02878-01-3
              

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UNITED  STATES AND WHOSE BUSINESS IS THE MAKING OF THOSE LOANS OR EXTEN-
SIONS OF CREDIT.
  (D)  ANY  BANK,  TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCI-
ATION, OR CREDIT UNION, WHETHER INCORPORATED,  CHARTERED,  OR  ORGANIZED
UNDER THE LAWS OF THIS STATE OR ANY OTHER STATE OR THE UNITED STATES, OR
ANY  OPERATING SUBSIDIARY OF ANY SUCH BANK, TRUST COMPANY, SAVINGS BANK,
SAVINGS AND LOAN ASSOCIATION, OR CREDIT UNION.
  2. "Consumer" means any natural person who is solicited to purchase or
who purchases the services of a credit services business.
  3. "EXTENSION OF CREDIT" MEANS THE RIGHT TO DEFER PAYMENT OF  DEBT  OR
TO  INCUR  DEBT  AND DEFER ITS PAYMENT, OFFERED OR GRANTED PRIMARILY FOR
PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES.
  4. "Person" includes an individual,  corporation,  partnership,  joint
venture, or any business entity.
  [4.]  5.  The  terms  "consumer  reporting agency", "consumer report",
"investigative consumer report", "file", and "adverse information" shall
have the meanings ascribed to each by section three hundred eighty-a  of
this chapter.
  S  3.  Section  458-c of the general business law, as added by chapter
386 of the laws of 1986, is amended to read as follows:
  S 458-c. Information statement; procedure. 1. Prior to  the  execution
of  a  contract  between  a consumer and a credit services business, the
credit services business  shall  provide  the  consumer  an  information
statement  in  writing,  on a separate sheet, containing the information
required by section four hundred  fifty-eight-d  of  this  chapter.  The
consumer  shall  acknowledge  receipt  of  such information statement by
placing his OR HER signature on the face thereof.  The  credit  services
business  shall maintain on file [or], microfilm OR ELECTRONIC MEDIA for
a period of two years from the date of  such  acknowledgement  an  exact
copy of such information statement.
  2. IN ADDITION TO THE REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION,
IN  ANY ORAL COMMUNICATION DURING WHICH A CONSUMER PAYS OR AGREES TO PAY
FOR THE SERVICES OF A CREDIT SERVICES BUSINESS, BEFORE THE CONSUMER PAYS
OR AGREES TO PAY FOR SUCH SERVICES, WHICHEVER OCCURS FIRST,  THE  CREDIT
SERVICES  BUSINESS  SHALL  ORALLY  DISCLOSE  IN  A CLEAR AND CONSPICUOUS
MANNER TO THE CONSUMER THE FOLLOWING STATEMENTS OR SUBSTANTIALLY SIMILAR
STATEMENTS:
  (A) YOU HAVE THE RIGHT TO OBTAIN A FREE COPY  OF  YOUR  CREDIT  REPORT
ONCE  EVERY  TWELVE  MONTHS FROM EACH OF THE NATIONWIDE CREDIT REPORTING
AGENCIES;
  (B) YOU MAY, ON YOUR OWN, DISPUTE INACCURATE INFORMATION IN YOUR CRED-
IT REPORT BY CONTACTING A CREDIT REPORTING AGENCY DIRECTLY;
  (C) NEITHER YOU NOR ANY BUSINESS OR ORGANIZATION HAS THE RIGHT TO HAVE
ACCURATE, CURRENT, AND VERIFIABLE INFORMATION REMOVED FROM  YOUR  CREDIT
REPORT; AND
  (D)  YOU  HAVE  THE  RIGHT  TO  CANCEL  YOUR  CONTRACT WITH ANY CREDIT
SERVICES BUSINESS FOR ANY REASON WITHIN FIVE BUSINESS DAYS FROM THE DATE
YOU SIGN THE CONTRACT.
  S 4. Section 458-d of the general business law, as  added  by  chapter
386 of the laws of 1986, is amended to read as follows:
  S  458-d.  Information statement; contents.  The information statement
shall be printed in at least  ten  point  type  and  shall  include  the
following[:

A. 598                              3

                       "RIGHT TO REVIEW YOUR FILE"

  "The  Federal  Fair  Credit  Reporting Act gives you the right to know
what your credit file contains, and the consumer reporting  agency  must
provide someone to help you interpret the data. The New York Fair Credit
Reporting  Act  gives  you  the  right to receive an actual copy of your
credit report.  You will be required to identify yourself to the consum-
er reporting agency and you may be charged a small fee. There is no fee,
however,  if you have been turned down for credit, employment, or insur-
ance because of information contained in a report within  the  preceding
thirty days."

                         "INCORRECT INFORMATION"

  "Consumer  reporting agencies are required to follow reasonable proce-
dures to ensure that subscribing creditors report information  accurate-
ly.  However, mistakes may occur.
  When  you  notify  the  consumer  reporting agency in writing that you
dispute the accuracy of information, it must reinvestigate and modify or
remove inaccurate data. The consumer reporting agency may not charge any
fee for this service. Any pertinent data you have  concerning  an  error
should be given to the consumer reporting agency.
  If  reinvestigation does not resolve the dispute to your satisfaction,
you may enter a statement of one hundred words or  less  in  your  file,
explaining why you think the record is inaccurate.
  The  consumer  reporting  agency  must  include  your  statement about
disputed data -- or a coded version of it -- with any reports it  issues
about you. New York law also provides that, at your request, the consum-
er  reporting agency must notify any person who has received a report in
the previous year that an error existed and furnish such person with the
corrected information."

                      "TIME LIMITS ON ADVERSE DATA"

  "Most kinds of information in your file may be reported for  a  period
of  seven years. If you have declared personal bankruptcy, however, that
fact may be reported for ten years.
  After seven years or ten years, the information can't be disclosed  by
a credit reporting agency unless you are being investigated for a credit
application  of  $50,000  or  more,  for an application to purchase life
insurance of $50,000 or more, or for employment at an annual  salary  of
$25,000  or  more."] NOTICE. PARAGRAPH HEADINGS SHALL BE CAPITALIZED AND
PRINTED IN FOURTEEN POINT BOLD TYPE.
              "IMPORTANT NOTICE REGARDING CREDIT SERVICES"
  "YOU HAVE A RIGHT TO DISPUTE INACCURATE  INFORMATION  IN  YOUR  CREDIT
REPORT  BY  CONTACTING  A  CREDIT  REPORTING  AGENCY  DIRECTLY. HOWEVER,
NEITHER YOU NOR ANY BUSINESS OR ORGANIZATION HAS THE RIGHT TO HAVE ACCU-
RATE, CURRENT, AND  VERIFIABLE  INFORMATION  REMOVED  FROM  YOUR  CREDIT
REPORT.  MOST KINDS OF INFORMATION MAY BE REPORTED FOR A PERIOD OF SEVEN
YEARS.  IF YOU HAVE DECLARED PERSONAL BANKRUPTCY, HOWEVER, THAT FACT MAY
BE REPORTED FOR TEN YEARS."
                  "RIGHT TO REVIEW YOUR CREDIT REPORT"
  "YOU  HAVE  A  RIGHT  TO OBTAIN A FREE COPY OF YOUR CREDIT REPORT ONCE
EVERY TWELVE MONTHS FROM EACH OF THE NATIONWIDE CREDIT  REPORTING  AGEN-
CIES.    TO  REQUEST  YOUR  FREE  ANNUAL  CREDIT  REPORT,  YOU MAY GO TO
WWW.ANNUALCREDITREPORT.COM, OR CALL 877-322-8228, OR COMPLETE THE ANNUAL

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CREDIT REPORT REQUEST FORM AND MAIL IT TO: ANNUAL CREDIT REPORT  REQUEST
SERVICE,  P.O.  BOX 105281, ATLANTA, GA 30348-5281. YOU CAN OBTAIN ADDI-
TIONAL COPIES OF YOUR CREDIT REPORT FROM A CREDIT REPORTING AGENCY,  FOR
WHICH  YOU MAY BE CHARGED A REASONABLE FEE. THERE IS NO FEE, HOWEVER, IF
YOU HAVE BEEN TURNED DOWN FOR CREDIT, EMPLOYMENT, INSURANCE, OR A RENTAL
DWELLING BECAUSE OF INFORMATION IN YOUR CREDIT REPORT WITHIN THE PRECED-
ING SIXTY DAYS. THE CREDIT REPORTING AGENCY MUST PROVIDE SOMEONE TO HELP
YOU INTERPRET THE INFORMATION IN YOUR CREDIT FILE. YOU ARE  ENTITLED  TO
RECEIVE  A  FREE  COPY  OF  YOUR CREDIT REPORT IF YOU ARE UNEMPLOYED AND
INTEND TO APPLY FOR EMPLOYMENT IN THE NEXT SIXTY  DAYS,  IF  YOU  ARE  A
RECIPIENT OF PUBLIC WELFARE ASSISTANCE, OR IF YOU HAVE REASON TO BELIEVE
THAT  THERE  IS  INACCURATE  INFORMATION  IN  YOUR  CREDIT REPORT DUE TO
FRAUD."
                         "INCORRECT INFORMATION"
  "CREDIT REPORTING AGENCIES ARE REQUIRED TO  FOLLOW  REASONABLE  PROCE-
DURES  TO  ENSURE THAT THE INFORMATION THEY REPORT IS ACCURATE. HOWEVER,
MISTAKES MAY OCCUR."
  "YOU MAY, ON YOUR OWN, NOTIFY A CREDIT  REPORTING  AGENCY  IN  WRITING
THAT  YOU  DISPUTE  THE ACCURACY OF INFORMATION IN YOUR CREDIT FILE. THE
CREDIT REPORTING AGENCY MUST THEN REINVESTIGATE  AND  MODIFY  OR  REMOVE
INACCURATE  OR  INCOMPLETE  INFORMATION. THE CREDIT REPORTING AGENCY MAY
NOT CHARGE ANY FEE FOR  THIS  SERVICE.  ANY  PERTINENT  INFORMATION  AND
COPIES  OF ALL DOCUMENTS YOU HAVE CONCERNING AN ERROR SHOULD BE GIVEN TO
THE CREDIT REPORTING AGENCY."
  "IF THE CREDIT REPORTING AGENCY'S REINVESTIGATION DOES NOT RESOLVE THE
DISPUTE TO YOUR SATISFACTION, YOU MAY SEND  A  BRIEF  STATEMENT  TO  THE
CREDIT  REPORTING  AGENCY, TO BE KEPT IN YOUR REPORT, EXPLAINING WHY YOU
THINK THE RECORD IS INACCURATE. THE CREDIT REPORTING AGENCY MUST INCLUDE
A SUMMARY OF YOUR STATEMENT ABOUT DISPUTED INFORMATION WITH  ANY  REPORT
IT ISSUES ABOUT YOU."
           "YOUR RIGHTS REGARDING CREDIT SERVICES BUSINESSES"
  "YOU  HAVE  THE RIGHT TO CANCEL YOUR CONTRACT WITH ANY CREDIT SERVICES
BUSINESS FOR ANY REASON WITHIN FIVE BUSINESS  DAYS  FROM  THE  DATE  YOU
SIGNED IT."
  "YOU  HAVE A RIGHT TO SUE A CREDIT SERVICES BUSINESS THAT MISLEADS YOU
OR VIOLATES NEW YORK STATE OR FEDERAL LAWS THAT PROHIBIT DECEPTIVE PRAC-
TICES."
  "THE FEDERAL TRADE COMMISSION AND THE NEW YORK ATTORNEY GENERAL  REGU-
LATE  CREDIT REPORTING AGENCIES AND CREDIT SERVICES BUSINESSES. FOR MORE
INFORMATION, CONTACT THE FEDERAL TRADE COMMISSION AT (INSERT THE CURRENT
TELEPHONE NUMBER ESTABLISHED BY THE FEDERAL TRADE COMMISSION FOR RECEIV-
ING INQUIRIES FROM CONSUMERS) OR (INSERT  THE  CURRENT  ADDRESS  OF  THE
WEBSITE  OF  THE FEDERAL TRADE COMMISSION). YOU MAY ALSO CONTACT THE NEW
YORK ATTORNEY GENERAL AT (INSERT THE  CURRENT  TELEPHONE  NUMBER  ESTAB-
LISHED  BY THE DEPARTMENT OF LAW FOR RECEIVING INQUIRIES FROM CONSUMERS)
OR (INSERT THE CURRENT ADDRESS OF  THE  WEBSITE  OF  THE  DEPARTMENT  OF
LAW)."
  S  5.  Section  458-e of the general business law, as added by chapter
386 of the laws of 1986, is amended to read as follows:
  S 458-e. Advance fees prohibited. It  is  hereby  declared  to  be  an
unfair  and  deceptive trade practice and unlawful for a credit services
business to: 1. receive or collect from a  consumer  any  fee  OR  OTHER
VALUABLE  CONSIDERATION  in advance of the performance of those services
specified in the contract as required by  section  four  hundred  fifty-
eight-f of this chapter; OR

A. 598                              5

  2. FAIL TO PERFORM THE AGREED SERVICES WITHIN SIX MONTHS FOLLOWING THE
DATE THE CONSUMER SIGNS THE CONTRACT FOR THOSE SERVICES.
  S  6.  Section  458-f of the general business law, as added by chapter
386 of the laws of 1986, is amended to read as follows:
  S 458-f. Contracts;  requirements  and  contents.  1.  Every  contract
between  a  consumer and a credit services business shall be in writing,
shall be dated, shall contain the street address of the credit  services
business and the consumer, and shall be signed by the consumer and cred-
it services business. Each contract shall contain the following:
  (a)  A complete and detailed statement of the services to be performed
and the results to be achieved by the credit services business for or on
behalf of the consumer, including a  list  of  the  adverse  information
appearing  on  the  consumer's  credit  report  that will be modified, a
description of the precise nature of each modification,  and  the  esti-
mated  date by which each modification will occur. A copy of the consum-
er's current credit report issued by a consumer credit reporting  agency
shall be annexed to the contract with the adverse entries proposed to be
modified clearly marked.
  (b) A statement in at least ten point type as follows:
  "Under  New York law no fee may be collected in advance of performance
of the services specified in this contract."
  2. The contract shall be accompanied by a completed form in duplicate,
captioned "Notice of Cancellation,"  which  shall  be  attached  to  the
contract  and  easily  detachable,  and  which shall contain in at least
[ten] TWELVE point type the following:
                        "Notice of Cancellation"
  "You may cancel this contract,  without any  penalty or  obligation,
within [three] FIVE days from the date the contract is signed.
  "To cancel this contract, mail or deliver a signed and dated copy of
this cancellation notice, or any other written notice,
to ____________________ at
    (name of seller)
______________________________________________________________________
    (address of seller)             (Place of business)
  not later than midnight____________________.
                              (date)
    "I hereby cancel this transaction."
                      ________________________________________________
                              (purchaser's signature)
                      ________________________________________________
                                    (date)
  3. A copy of the fully completed  contract  and  all  other  documents
shall  be  given  to  the  [buyer]  CONSUMER at the time the contract is
signed.
  4. ANY CONSUMER SHALL HAVE THE RIGHT TO CANCEL A CONTRACT WITH A CRED-
IT SERVICES BUSINESS WITHOUT PENALTY  OR  OBLIGATION  BY  NOTIFYING  THE
CREDIT  SERVICES  BUSINESS  OF  THE CONSUMER'S INTENTION TO DO SO AT ANY
TIME BEFORE MIDNIGHT OF THE FIFTH BUSINESS DAY WHICH  BEGINS  AFTER  THE
DATE  ON  WHICH  THE  CONTRACT OR AGREEMENT BETWEEN THE CONSUMER AND THE
CREDIT SERVICES BUSINESS IS EXECUTED OR WOULD,  BUT  FOR  THIS  SECTION,
BECOME ENFORCEABLE AGAINST THE PARTIES.
  5.  NO  SERVICES  MAY BE PROVIDED UNDER THE CONTRACT BEFORE THE END OF
THE FIVE BUSINESS DAYS BEGINNING ON THE DATE THE CONTRACT IS SIGNED.
  S 7. Section 458-h of the general business law, as  added  by  chapter
386  of  the  laws of 1986, subdivision 3 as added by chapter 725 of the
laws of 1991, is amended to read as follows:

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  S 458-h. Deceptive acts prohibited. It is hereby  declared  to  be  an
unfair  and  deceptive trade practice and unlawful for a credit services
[company] BUSINESS to:
  1. Misrepresent directly or indirectly in its advertising, promotional
materials,  sales  presentation,  or  in  any  manner: the nature of the
services to be  performed;  the  time  within  which  services  will  be
performed;  the  ability to improve a consumer's credit report or credit
rating; the amount or type of credit a consumer can expect to receive as
a result of the performance of the services offered; the qualifications,
training or experience of its personnel.
  2. Make or counsel or advise any consumer to make any statement  which
is  untrue or misleading and which is known, or which by the exercise of
reasonable care should be known,  to  be  untrue  or  misleading,  to  a
consumer credit reporting agency or to any person who has extended cred-
it  to  a consumer or to whom a consumer is applying for an extension of
credit, with respect to a consumer's credit worthiness, credit standing,
or credit capacity.
  3. Represent directly or indirectly in  its  advertising,  promotional
materials,  sales  presentation, or in any manner that it can procure or
obtain a credit card for a consumer unless that credit services  [compa-
ny] BUSINESS has authority to issue the credit card being advertised.
  4.  CHARGE  OR  RECEIVE  ANY MONEY OR OTHER VALUABLE CONSIDERATION FOR
REFERRAL OF THE CONSUMER TO A RETAIL SELLER OR OTHER CREDIT GRANTOR  WHO
WILL  OR  MAY  EXTEND CREDIT TO THE CONSUMER, IF EITHER OF THE FOLLOWING
APPLIES:
  (A) THE CREDIT THAT IS OR WILL BE EXTENDED TO THE CONSUMER (I) IS UPON
SUBSTANTIALLY THE SAME TERMS AS THOSE AVAILABLE TO THE GENERAL PUBLIC OR
(II) IS UPON SUBSTANTIALLY THE SAME TERMS THAT WOULD HAVE BEEN  EXTENDED
TO THE CONSUMER WITHOUT THE ASSISTANCE OF THE CREDIT SERVICES BUSINESS.
  (B)  THE  MONEY  OR  CONSIDERATION IS PAID BY THE CREDIT GRANTOR OR IS
DERIVED FROM THE CONSUMER'S PAYMENTS TO THE CREDIT  GRANTOR  FOR  COSTS,
FEES, FINANCE CHARGES, OR PRINCIPAL.
  5.  MAKE, OR COUNSEL OR ADVISE A CONSUMER TO MAKE, A STATEMENT THAT IS
UNTRUE OR MISLEADING AND THAT IS KNOWN,  OR  THAT  BY  THE  EXERCISE  OF
REASONABLE CARE SHOULD BE KNOWN, TO BE UNTRUE OR MISLEADING, TO A CREDIT
REPORTING AGENCY OR TO A PERSON WHO HAS EXTENDED CREDIT TO A CONSUMER OR
TO  WHOM  A  CONSUMER  IS  APPLYING  FOR AN EXTENSION OF CREDIT, SUCH AS
STATEMENTS CONCERNING A CONSUMER'S IDENTIFICATION, HOME ADDRESS, CREDIT-
WORTHINESS, CREDIT STANDING, OR CREDIT CAPACITY.
  6. REMOVE, OR ASSIST OR ADVISE THE CONSUMER TO REMOVE, ADVERSE  INFOR-
MATION FROM THE CONSUMER'S CREDIT RECORD WHICH IS ACCURATE AND NOT OBSO-
LETE.
  7.  CREATE,  OR  ASSIST OR ADVISE THE CONSUMER TO CREATE, A NEW CREDIT
RECORD BY USING A DIFFERENT NAME, ADDRESS, SOCIAL  SECURITY  NUMBER,  OR
EMPLOYEE IDENTIFICATION NUMBER.
  8. FAIL TO MAINTAIN AN AGENT FOR SERVICE OF A PROCESS IN THIS STATE.
  9.  SUBMIT  A CONSUMER'S DISPUTE TO A CONSUMER CREDIT REPORTING AGENCY
WITHOUT THE CONSUMER'S KNOWLEDGE.
  10. USE A CONSUMER  CREDIT  REPORTING  AGENCY'S  TELEPHONE  SYSTEM  OR
TOLL-FREE  TELEPHONE  NUMBER  TO REPRESENT THE CALLER AS THE CONSUMER IN
SUBMITTING A DISPUTE OF A  CONSUMER  OR  REQUESTING  DISCLOSURE  WITHOUT
PRIOR AUTHORIZATION OF THE CONSUMER.
  11. DIRECTLY OR INDIRECTLY EXTEND CREDIT TO A CONSUMER.
  12. REFER A CONSUMER TO A CREDIT GRANTOR THAT IS RELATED TO THE CREDIT
SERVICES BUSINESS BY A COMMON OWNERSHIP, MANAGEMENT, OR CONTROL, INCLUD-
ING A COMMON OWNER, DIRECTOR, OR OFFICER.

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  13. REFER A CONSUMER TO A CREDIT GRANTOR FOR WHICH THE CREDIT SERVICES
BUSINESS  PROVIDES,  OR  ARRANGES FOR A THIRD PARTY TO PROVIDE, SERVICES
RELATED TO THE  EXTENSION  OF  CREDIT  SUCH  AS  UNDERWRITING,  BILLING,
PAYMENT PROCESSING, OR DEBT COLLECTION.
  14.  PROVIDE  A  CREDIT GRANTOR WITH AN ASSURANCE THAT A PORTION OF AN
EXTENSION OF CREDIT TO A CONSUMER REFERRED BY THE CREDIT SERVICES  BUSI-
NESS  WILL  BE REPAID, INCLUDING PROVIDING A GUARANTY, LETTER OF CREDIT,
OR AGREEMENT TO ACQUIRE A PART OF THE CREDIT GRANTOR'S FINANCIAL  INTER-
EST IN THE EXTENSION OF CREDIT.
  15.  USE  A  SCHEME,  DEVICE, OR CONTRIVANCE TO EVADE THE PROHIBITIONS
CONTAINED IN THIS ARTICLE.
  S 8. Section 458-i of the general business law, as  added  by  chapter
386 of the laws of 1986, is amended to read as follows:
  S  [458-i.]  458-J.  Action  for  recovery of damages by consumer. Any
consumer injured by a violation of this article or by the breach by  the
credit  services  business  of  a  contract  which has been entered into
pursuant to section four hundred fifty-eight-f of this chapter may bring
an action for recovery of damages. Judgment shall be entered in favor of
a consumer in an amount not to exceed three times  the  actual  damages,
but  in no case less than the amount paid by the [buyer] CONSUMER to the
credit services business. The court may award reasonable attorney's fees
to a prevailing plaintiff.
  S 9. Section 458-k of the general business law is renumbered 458-n and
section 458-j of the general business law, as added by  chapter  386  of
the laws of 1986, is amended to read as follows:
  S  [458-j.] 458-K. Enforcement by attorney general. In addition to the
other remedies provided, whenever there shall be  a  violation  of  this
article,  application may be made by the attorney general in the name of
the people of the state of New York to a court or justice having  juris-
diction  by a special proceeding to issue an injunction, and upon notice
to the defendant of not less than five days, to enjoin and restrain  the
continuance  of such violations; and if it shall appear to the satisfac-
tion of the court or justice that the defendant has, in  fact,  violated
this  article,  an  injunction  may  be issued by such court or justice,
enjoining and restraining any further violation, without requiring proof
that any person has, in fact, been injured or damaged  thereby.  In  any
such  proceeding,  the court may make allowances to the attorney general
as provided in paragraph six of subdivision (a) of section  eighty-three
hundred  three  of the civil practice law and rules, and direct restitu-
tion. Whenever the court shall determine that a violation of this  arti-
cle  has occurred, the court may impose a civil penalty of not more than
[one]  TWO  thousand  FIVE  HUNDRED  dollars  for  each  violation.   In
connection  with  any such proposed application, the attorney general is
authorized to take proof and make a determination of the relevant  facts
and  to  issue  subpoenas  in accordance with the civil practice law and
rules.
  S 10. The general business law is amended by adding two  new  sections
458-l and 458-m to read as follows:
  S  458-L.  ASSISTING  AND  FACILITATING.  IT  IS HEREBY DECLARED TO BE
UNLAWFUL FOR A PERSON TO PROVIDE SUBSTANTIAL ASSISTANCE  OR  SUPPORT  TO
ANY  CREDIT  SERVICES  BUSINESS  WHEN  THAT  PERSON KNOWS OR CONSCIOUSLY
AVOIDS KNOWING THAT THE CREDIT SERVICES BUSINESS IS ENGAGED IN  ANY  ACT
OR PRACTICE THAT VIOLATES THIS ARTICLE.
  S  458-M.  SUBSEQUENT  VIOLATIONS. A SECOND OR SUBSEQUENT VIOLATION OF
SECTIONS FOUR HUNDRED FIFTY-EIGHT-E OR  FOUR  HUNDRED  FIFTY-EIGHT-H  OF
THIS  ARTICLE SHALL BE A CLASS A MISDEMEANOR. EACH SUCH VIOLATION MAY BE

A. 598                              8

PROSECUTED BY THE ATTORNEY GENERAL OR THE DISTRICT ATTORNEY IN THE COUN-
TY IN WHICH THE VIOLATION IS ALLEGED TO HAVE OCCURRED.
  S  11.  This act shall take effect on the ninetieth day after it shall
have become a law; provided, however  that  effective  immediately,  the
addition,  amendment  and/or  repeal of any rule or regulation necessary
for the implementation of this act on its effective date  is  authorized
and directed to be made and completed on or before such effective date.