Section 20-723.2. Disclosure Requirements for Businesses Promoting Credit Counseling Services

a. Definitions. For purposes of this section:
    (1) "Credit counselor"  shall  mean  any  person,  partnership,  firm,
  corporation  or  business entity advertising, promoting, or offering the
  type or category of credit counseling services required to  be  received
  as  a  pre-condition  for  filing  a  petition  for bankruptcy under the
  Bankruptcy  Abuse  Prevention  and  Consumer  Protection  Act  of  2005,
  including,  but not limited to, consideration of alternatives to resolve
  a client's credit problems and  an  analysis  of  the  client's  budget,
  current   financial   condition,  factors  that  caused  such  financial
  condition, and how such client can develop a  plan  to  respond  to  the
  problems without incurring negative amortization of debt.
    (2)  "Approved  credit counselor" shall mean a credit counselor listed
  in the directory of authorized nonprofit budget  and  credit  counseling
  service   providers   promulgated   pursuant  to  the  Bankruptcy  Abuse
  Prevention and Consumer Protection Act of 2005.
    b. (1) Any person, partnership, firm, corporation or  business  entity
  promoting   or   offering   the   services   of   a   credit  counselor,
  notwithstanding whether such person, partnership, firm,  corporation  or
  business  entity  accepts a fee for such services, shall provide written
  notice  to  any  potential  or  actual  consumer   when   such   person,
  partnership,  corporation,  firm  or  business is not an approved credit
  counselor.
    (2) Such notice, to be signed by any  potential  or  actual  consumer,
  shall include, but not be limited to, the following provisions:
    i.   that   the  federal  Bankruptcy  Abuse  Prevention  and  Consumer
  Protection Act of 2005 created an approval process for nonprofit  budget
  and  credit  counseling  agencies  that  provide  an  evaluation of your
  current financial situation, a discussion on alternatives to  bankruptcy
  and a personal budget plan;
    ii.  that to be approved by the United States Trustee and added to the
  directory  of  approved  credit  counselors,  a  credit  counselor  must
  satisfactorily  demonstrate  compliance  with  the  requirements  of the
  Bankruptcy Abuse Prevention and Consumer Protection Act of 2005;
    iii. that such credit counselor is not approved  to  offer  bankruptcy
  counseling  services  pursuant  to  the  Bankruptcy Abuse Prevention and
  Consumer Protection Act of 2005;
    iv. that a consumer of a  credit  counselor  may  contact  the  United
  States  department  of  justice  or  the  clerk  of  the  United  States
  bankruptcy court for the southern and eastern districts of New York  for
  a  list  of  credit counselors approved pursuant to the Bankruptcy Abuse
  Prevention and Consumer Protection Act of  2005,  if  such  consumer  is
  considering filing a bankruptcy petition;
    v.  that  a consumer of a credit counselor is not required to obtain a
  loan or enter into a contract  for  debt  repayment  with  any  specific
  credit counselor; and
    vi. such other provisions as the department may deem appropriate.
    c.  Any person, partnership, firm, corporation or business entity that
  holds itself out to the public in printed, televised, or radio media  as
  providing  the  services  of  a  credit counselor but is not an approved
  credit counselor shall disclose in such media that it is not an approved
  credit  counselor  pursuant  to  the  Bankruptcy  Abuse  Prevention  and
  Consumer Protection Act of 2005.
    * d.  (1)  Notwithstanding  any other provision of law, the department
  shall be authorized  upon  due  notice  and  hearing,  to  impose  civil
  penalties  for  the  violation  of  any  provision  of this section. The
  department shall have the power to render decisions and  orders  and  to

  impose  civil  penalties  of  not  less  than  two thousand five hundred
  dollars nor more than five thousand  dollars  for  each  violation.  All
  proceedings  authorized pursuant to this paragraph shall be conducted in
  accordance  with rules promulgated by the commissioner. The remedies and
  penalties provided for in this paragraph shall be  in  addition  to  any
  other  remedies  or  penalties  provided  for  the  enforcement  of such
  provisions under any other law including, but not limited to,  civil  or
  criminal actions or proceedings.
    (2) All such proceedings shall be commenced by the service of a notice
  of   violation   returnable   to  the  administrative  tribunal  of  the
  department. The commissioner shall prescribe the  form  and  wording  of
  notices  of  violation.  The  notice  of violation or copy thereof shall
  constitute notice  of  the  violation  charged,  and,  if  sworn  to  or
  affirmed, shall be prima facie evidence of the facts contained therein.
    * NB There are 2 sb d's
    * d. The commissioner shall conspicuously disclose on its web site all
  persons,  partnerships,  firms,  corporations  or business entities that
  have been found to have violated any  provisions  of  this  section,  or
  rules and regulations promulgated hereunder, within the preceding twelve
  months. Such disclosure shall, at minimum, list the name of each person,
  partnership, firm, corporation or business entity found to have violated
  any  provisions  of  this  section, or rules and regulations promulgated
  hereunder, as well as the nature of each violation.
    * NB There are 2 sb d's