N.Y. General Business Law 458-F – Contracts; requirements and contents
§ 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 credit services business. Each contract shall contain the following:
Terms Used In N.Y. General Business Law 458-F
- Consumer: means any natural person who is solicited to purchase or who purchases the services of a credit services business. See N.Y. General Business Law 458-B
- Contract: A legal written agreement that becomes binding when signed.
- Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
- 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. See N.Y. General Business Law 458-B
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(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 estimated date by which each modification will occur. A copy of the consumer'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 point type the following:
"Notice of Cancellation"
"You may cancel this contract, without any penalty or obligation, within three 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 at the time the contract is signed.