New York § 352 - 352Acts required of licensees; acts prohibited

§ 352. 352Acts required of licensees; acts prohibited

§ 352. Acts required of licensees; acts prohibited. Every licensee shall: Deliver to the borrower at the time any loan is made or prior to the first advance under an open-end loan agreement a statement, in the English language showing in clear and distinct terms the name and address of the borrower and of the licensee and all items required to be disclosed by the act of congress entitled "Truth in Lending Act" and the regulations thereunder, as such act and regulations may from time to time be amended. For each cash payment made on account of any closed-end loan, give to the person making it at the time the payment is made, a plain and complete receipt containing the information required by regulations of the superintendent. Permit payment to be made in advance in any amount on any loan agreement at any time, but the licensee may initially apply such payment to all interest and other charges due to the date of such payment. Upon repayment of the loan in full, mark indelibly every obligation signed by the borrower or a copy thereof with the word "paid" or "cancelled", and release any mortgage or security agreement no longer securing an obligation of the borrower, restore any pledge, cancel and return any note or a copy thereof, and cancel and return any assignment or a copy thereof given to the licensee by the borrower. An open-end loan shall not be deemed to be repaid in full for this purpose unless any balance is paid in full and the borrower relinquishes all power to receive further advances under the contract and makes a written request for the release of all collateral for the loan. Every licensee which holds collateral of a borrower shall be fully liable for the return of the collateral upon payment of the indebtedness in full. No licensee shall collect, evaluate, report or maintain in the file on a borrower the credit worthiness, credit standing or credit capacity of members of the borrower's social network for purposes of determining the credit worthiness of the borrower; the average credit worthiness, credit standing or credit capacity of members of the borrower's social network; or any group score that is not the borrower's own credit worthiness, credit standing or credit capacity. The provisions of this paragraph shall be enforced concurrently by the superintendent and the director of the division of consumer protection and each shall utilize their consumer complaint and assistance hotlines to document complaints by borrowers who believe that group credit ratings of their social media network are being used to deny them credit. The superintendent shall ensure that the credit scoring formulas filed with the department do not contain variables which account for internet viewing history as part of that formula by asking the licensee to certify to that fact. No licensee shall take any confession of judgment or any power of attorney running to himself or to any third person to confess judgment or to appear for the borrower in a judicial proceeding. No licensee shall take any instrument in which blanks are left to be filled in after execution.