A student debt consultant is prohibited from doing the following: (a) performing student debt consulting services without a legal written, fully-executed contract with a borrower that comports with the provisions of this article; (b) charging for or accepting any payment for student debt consulting services before the full completion of all such services, including a payment to be placed in escrow or any other account pending the completion of such services; (c) taking a power of attorney from a borrower; (d) retaining any original loan document or other original document related to a borrower's student loan; (e) requesting that a borrower provide his or her FSA ID to the consultant, or accepting a borrower's FSA ID; (f) stating or implying that a borrower will not be able to obtain relief on their own; (g) misrepresenting, expressly or by implication, that: (1) the consultant is a part of, affiliated with, or endorsed or sponsored by the government, government loan programs, the United States department of education, or borrowers' student loan servicers; or (2) some or all of a borrower's payments to the consultant will be applied towards the borrower's nt loan programs, the United States department of education, or borrowers' student loan servicers; or (2) some or all of a borrower's payments to the consultant will be applied towards the borrower's student loans. (h) inducing or attempting to induce a student debtor to enter a contract that does not fully comply with the provisions of this article; or (i) engaging in any unfair, deceptive, or abusive act or practice.
New York Legal Code