Paul Fazio, Deputy Superintendent of the New York State Banking Department, has advised the American Association of Debt Management Organizations (AADMO.org) that as of March 17, the Department has only received a handful of applications for licensing as a "Budget Planner" in the state.

The Department has clearly and definitively now stated that if you currently have ANY New York residents as clients, you must become licensed to retain those clients. If your company is not licensed and does not plan to become licensed, you will need to make arrangements to transfer those clients to a company that is licensed in New York.

The retention of New York residents as clients after April 7, 2003 without a Budget Planner License is a violation of the law and the Department will undertake efforts to issue Cease and Desist Orders. If your application is in process, however, you MUST have the bond filed as of April 7th.