N.Y. Financial Services Law Section 704
Student debt consulting contracts


A student debt consulting contract shall:


contain the entire agreement of the parties;


be provided in writing to the borrower for review before signing;


be printed in at least twelve-point type and written in the same language that is used by the borrower and was used in discussions between the consultant and the borrower to describe the borrower’s services or to negotiate the contract;


fully disclose the exact nature of the services to be provided by the consultant or anyone working in association with the consultant;


fully disclose the total amount and terms of compensation for such services;


contain the name, business address and telephone number of the consultant and the street address, if different, and facsimile number or email address of the consultant where communications from the debtor may be delivered;


be dated and personally signed by the borrower and the consultant and be witnessed and acknowledged by a New York notary public; and


contain the following notice, which shall be printed in at least fourteen-point boldface type, completed with the name of the Provider, and located in immediate proximity to the space reserved for the debtor’s signature: “NOTICE REQUIRED BY NEW YORK LAW You may cancel this contract, without any penalty or obligation, at any time before midnight of .......... (fifth business day after execution). .......... (Name of consultant) (the ”Consultant“) or anyone working for the Consultant may not take any money from you or ask you for money until the consultant has completely finished doing everything this Contract says the Consultant will do. You should consider contacting your student loan servicer before signing any legal document concerning your student loan. In addition, you may want to visit the New York State Department of Financial Services’ student lending resource center at www.dfs.ny.gov/studentprotection. The law requires that this contract contain the entire agreement between you and the Provider. You should not rely upon any other written or oral agreement or promise.” The Provider shall accurately enter the date on which the right to cancel ends.


(1) The borrower has the right to cancel, without any penalty or obligation, any contract with a consultant until midnight of the fifth business day following the day on which the consultant and the borrower sign a consulting contract. Cancellation occurs when the borrower, or a representative of the borrower, either delivers written notice of cancellation in person to the address specified in the consulting contract or sends a written communication by facsimile, by United States mail or by an established commercial letter delivery service. A dated proof of facsimile delivery or proof of mailing creates a presumption that the notice of cancellation has been delivered on the date the facsimile is sent or the notice is deposited in the mail or with the delivery service. Cancellation of the contract shall release the borrower from all obligations to pay fees or any other compensation to the consultant.


The contract shall be accompanied by two copies of a form, captioned “notice of cancellation” in at least twelve-point bold type. This form shall be attached to the contract, shall be easily detachable, and shall contain the following statement written in the same language as used in the contract, and the contractor shall insert accurate information as to the date on which the right to cancel ends and the contractor’s contact information: “NOTICE OF CANCELLATION Note: You may cancel this contract, without any penalty or obligation, at any time before midnight of (Enter date) To cancel this contract, sign and date both copies of this cancellation notice and personally deliver one copy or send it by facsimile, United States mail, or an established commercial letter delivery service, indicating cancellation to the Consultant at one of the following: Name of Consultant Street Address City, State, Zip Facsimile: I hereby cancel this transaction. Name of Borrower: Signature of Borrower: Date: ” (3) Within ten days following receipt of a notice of cancellation given in accordance with this subsection, the consultant shall return any original contract and any other documents signed by or provided by the borrower. Cancellation shall release the borrower of all obligations to pay any fees or compensation to the consultant.

Source: Section 704 — Student debt consulting contracts, https://www.­nysenate.­gov/legislation/laws/FIS/704 (updated Oct. 2, 2020; accessed Nov. 25, 2023).

Nov. 25, 2023

Last modified:
Oct. 2, 2020

§ 704’s source at nysenate​.gov

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