On this website, I do not always get to give good news, and I am afraid that this is one of these times.
The answer is yes
, this is lawful. It is not unlawful for debt consolidation companies to charge you for their services under NY law. If this is what one signed, then one is liable for it.
The only way that one would not be liable is if:
1) They tricked you in some way;
2) They do not hold up their end of the bargain (then one can demand a refund); or
3) The clause is unconscionable
or against public policy
. Sablosky v. Gordon Co., 73 NY 2d 133 - NY: Court of Appeals 1989
. However, this would be neither.
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