S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5234
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 7, 2017
                                ___________
 
 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.
   §  2.  Section  458-b of the general business law, as added by chapter
 386 of the laws of 1986, paragraph (a) of subdivision 1  as  amended  by
 chapter 549 of the laws of 2013, is amended to read as follows:
   § 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 charitable corporation as defined in paragraph (a) of  section
 one  hundred  two  (Definitions)  of  the not-for-profit corporation law
 licensed pursuant to article [twelve-c] 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.
              

                                                            LBD03594-01-7

 A. 5234                             2
 
 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.
   §  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:
   § 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]
 ARTICLE.  The  consumer  shall  acknowledge  receipt of such information
 statement by placing his OR HER signature on the face thereof. The cred-
 it services business shall maintain on file [or], microfilm OR ELECTRON-
 IC 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.
   §  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:
   § 458-d. Information statement; contents.   The information  statement
 shall  be  printed  in  at  least  ten  point type and shall include the
 following[:

 A. 5234                             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

 A. 5234                             4
 
 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)."
   §  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:
   § 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] ARTICLE; OR

 A. 5234                             5
 
   2. FAIL TO PERFORM THE AGREED SERVICES WITHIN SIX MONTHS FOLLOWING THE
 DATE THE CONSUMER SIGNS THE CONTRACT FOR THOSE SERVICES.
   §  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:
   § 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.
   § 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:

 A. 5234                             6
 
   § 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 SUBMIT-
 TING 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.

 A. 5234                             7
 
   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.
   § 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:
   §  [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] ARTICLE
 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] CONSUM-
 ER  to  the  credit  services  business.  The court may award reasonable
 attorney's fees to a prevailing plaintiff.
   § 9. Section 458-k of the general business law is  renumbered  section
 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:
   §  [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.
   § 10. The general business law is amended by adding two  new  sections
 458-l and 458-m to read as follows:
   §  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.
   §  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. 5234                             8
 
 PROSECUTED BY THE ATTORNEY GENERAL OR THE DISTRICT ATTORNEY IN THE COUN-
 TY IN WHICH THE VIOLATION IS ALLEGED TO HAVE OCCURRED.
   §  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.