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Can you summarize NYCL FIS Article 4?
Financial Services Law > Financial Frauds Prevention
Short Summary
The legal document establishes a financial frauds and consumer protection unit within the department of financial services in order to uncover, investigate, and eliminate financial frauds in New York state. The unit is designated as a qualified agency to enforce the provisions of the Financial Services Law, Insurance Law, and Banking Law. The superintendent of financial services has the power to designate employees of the unit as peace officers. Specialized units can be established within the financial frauds and consumer protection unit to investigate and prevent fraud and other criminal activity in specific areas of the banking, finance, and insurance industries. The document provides immunity from civil liability for certain actions related to suspected violations of the banking law or the insurance law. It clarifies that the financial frauds and consumer protection unit does not have the specific powers or responsibilities of the consumer protection division of the department of state. The document also outlines the imposition of civil penalties by the superintendent under the Financial Services Law, with penalties of up to $5,000 per offense for intentional fraud or intentional misrepresentation, and up to $1,000 per offense for other violations. The superintendent is required to report violations to the appropriate licensing agency, the district attorney, the attorney general, and the person who submitted the report. Annual reports on the activities of the financial frauds and consumer protection unit and health insurance fraud investigations are also required.
Whom does it apply to?
The financial frauds and consumer protection unit, employees designated as peace officers, entities involved in banking, finance, and insurance industries
What does it govern?
Establishment of a financial frauds and consumer protection unit within the department of financial services, consolidation of responsibilities of the insurance frauds bureau and the criminal investigations bureau, designation of the unit as a qualified agency to enforce the provisions of the Financial Services Law, Insurance Law, and Banking Law, establishment of specialized units within the financial frauds and consumer protection unit
What are exemptions?
The financial frauds and consumer protection unit does not have the specific powers or responsibilities of the consumer protection division of the department of state
What are the Penalties?
Civil penalties of up to $5,000 per offense for intentional fraud or intentional misrepresentation of a material fact related to financial products or services, or violations of fair debt collection practices or fair lending laws, civil penalties of up to $1,000 per offense for other violations of the Financial Services Law, Insurance Law, or Banking Law
Jurisdiction
New York