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NY law that governs this is NY contract law, which states that your contract would be honored by the courts and enforced as written. This means that if your contract has a right to cure clause, which is what you described above, the lender (and their agent who is the collection agency) has to honor the contract terms as written. The collection agent refusing to honor the contract as written is a violation of the Fair Debt Collection Practices Act and you can file a complaint against them with the Federal Trade Commission and also you can send them (both the lender and the collection agent) a written demand to cure and attach your contract and tell them in the letter that their failure to honor the terms of the contract will result in suit against them for violation of the Fair Debt Collection Practices Act and for breach of contract and attorney's fees as provided for in the Act as well.
If they refuse to honor the contract as written you will need to sue the lender for breach of contract and seek your damages from them for not honoring the contractual terms you were granted.
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