Relates to prohibited unlicensed activities

Consumer repayment and penalties for unlicensed providers

Effective immediately, New York prohibits covered financial activities without required state approval, unless an exemption applies. Unlicensed providers also face penalties for acts or failures to act that would carry monetary penalties for licensed providers. After notice and a hearing, the state financial regulator may impose civil penalties and order repayment to harmed consumers. Penalties match existing Banking Law or Financial Services Law penalties, with up to double the applicable penalty when consumers are harmed. The law bars specified duplicate penalties for the same act, but allows enforcement alongside other actions. Hearings must follow state administrative procedure rules, and hearing examiners can take testimony and evidence. Covered penalty decisions can become enforceable judgments without court proceedings 120 days after the decisions take effect. The regulator can investigate suspected financial, banking, and insurance law violations. The regulator must report violations to licensing agencies, prosecutors, and, when appropriate, the entity that reported fraud. The regulator must update the reporting authority within 120 days on the status of reported violations.