1. No assignee who takes a note or other obligation as consideration for a contract containing the disclosure requirements of section six hundred twenty-four of this article shall fail to honor the consumer’s right of cancellation as provided in this article.

Terms Used In N.Y. General Business Law 625

  • Contract: A legal written agreement that becomes binding when signed.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Seller: as used in this article means any person, firm, corporation, partnership, unincorporated association or other business enterprise which operates or intends to operate a health club. See N.Y. General Business Law 621
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.