Section 703 - Disclosure requirements(a) A student debt consultant shall clearly and conspicuously disclose in all advertisements: (1) the actual services the consultant provides to borrowers;(2) that borrowers may apply for consolidation loans from the United States department of education at no cost, including providing a direct link in all online advertising and contact information in all print advertising to the application materials for a Direct Consolidation Loan from the United States department of education;(3) that consolidation or other services offered by the consultant may not be the best or only option for borrowers;(4) that alternative federal student loan repayment plans, including income-based programs, that do not require consolidating existing federal student loans may be available; and(5) that borrowers should consider consulting their student loan servicer before signing any legal document concerning a student loan.(b) The disclosures required by subsection (a) of this section, if disseminated through print media or the internet, shall be clearly and legibly printed or displayed in not less than twelve-point bold type, or, if the advertisement is printed to be displayed in print that is smaller than twelve point, in bold type print that is no smaller than the print in which the text of the advertisement is printed or displayed.(c) The provisions of this section shall apply to all consultants who disseminate advertisements in the state of New York or who intend to directly or indirectly contact a borrower who has a student loan and is a resident of or a student in New York state. Consultants shall establish and at all times maintain control over the content, form and method of dissemination of all advertisements of their services. Further, all advertisements shall be sufficiently complete and clear to avoid the possibility to mislead or deceive.N.Y. Financial Services Law § 703
Added by New York Laws 2020, ch. 58,Sec. MM-1, eff. 9/30/2020.