§ 707. Penalties. Any creditor, having received a notice from a consumer as provided in section seven hundred three of this act, who fails to comply with the requirements of that section: 1. If such an amount is not in fact a billing error, forfeits any rights to collect from the consumer any finance charge or other charge imposed by the creditor in connection with the amount so specified, from the date of the mailing of such notice to the date the creditor complies with section seven hundred three of this act; and 2. If such amount is in fact a billing error, is liable to the consumer in an amount equal to the sum of:

(a) the actual damages sustained by the consumer as a result of the failure of the creditor to comply with such section;

(b) twice the amount of the billing error shown in the statement of the consumer's account except that liability under this paragraph shall not be greater than four hundred dollars; and

(c) in the case of any successful action to enforce the foregoing liability, the costs of the action together with a reasonable attorney's fee as determined by the court. 3. If such amount is in fact a billing error but the creditor shows by a preponderance of evidence that the violation was not intentional and resulted from bona fide error made despite the maintenance of procedures reasonably adopted to avoid any such error, the creditor shall be liable to the consumer only to the extent of the actual damages sustained by the consumer as a result of the failure of the creditor to comply with such section and the costs of any action brought to enforce collection of such erroneous bill together with a reasonable attorney's fee as determined by the court. 4. Whenever there shall be a violation of subdivision two of section seven hundred two of this article, an application may be made by the attorney general in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin or restrain the continuance of such violation; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated subdivision two of section seven hundred two of this article, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitution. Whenever the court shall determine that a violation of subdivision two of section seven hundred two of this article has occurred, the court may impose a civil penalty of not more than two hundred fifty dollars for each such violation. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules.