N.Y.
General Business Law Section 625
Assignment of contracts for services
1.
No assignee who takes a note or other obligation as consideration for a contract containing the disclosure requirements of § 624 (Rights of cancellation of contracts for services)section six hundred twenty-four of this article shall fail to honor the consumer’s right of cancellation as provided in this article.2.
No creditor holding a note or other obligation, to which a consumer has obligated himself in order to purchase a contract shall fail to honor the consumer’s right of cancellation under this article if:(a)
the creditor is a person related to the seller of services; or(b)
the seller prepares documents used in connection with the loan; or(c)
the creditor supplies forms to the seller used by the consumer in obtaining the loan; or(d)
the creditor makes twenty or more loans in any calendar year, the proceeds of which are used in transactions with the same seller or with a person related to the same seller; or(e)
the consumer is referred to the creditor by the seller; or(f)
the creditor, directly or indirectly, pays the seller any consideration whether or not it is in connection with the particular transactions; or(g)
the creditor participated in or was connected with the sale.3.
No assignee of a contract shall fail to give notice of the assignment to the consumer. A notice of assignment shall be in writing addressed to the consumer at the address shown on the contract and shall identify the contract.
Source:
Section 625 — Assignment of contracts for services, https://www.nysenate.gov/legislation/laws/GBS/625 (updated Sep. 22, 2014; accessed Oct. 26, 2024).
