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.
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.
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