Bill Text: NY A09898 | 2021-2022 | General Assembly | Introduced

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Bill Title: Prohibits consumer reporting agencies and lenders from using an individual's late payment of cashless tolls to determine their credit worthiness.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-04-19 - referred to consumer affairs and protection [A09898 Detail]

Download: New_York-2021-A09898-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9898

                   IN ASSEMBLY

                                     April 19, 2022
                                       ___________

        Introduced  by M. of A. CARROLL -- read once and referred to the Commit-
          tee on Consumer Affairs and Protection

        AN ACT to amend the  general  business  law  and  the  banking  law,  in
          relation  to  prohibiting  a  consumer reporting agency or lender from
          using an individual's late payment of cashless tolls to determine such
          individual's credit worthiness

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subparagraphs (vii) and (viii) of paragraph 1 of subdivi-
     2  sion (f) of section 380-j of the general business law, as added by chap-
     3  ter 867 of the laws of 1977, are amended to read as follows:
     4    (vii) information relating to past confinement in a mental institution
     5  where the date of last confinement antedates the  report  by  more  than
     6  seven years; [or]
     7    (viii)  late  payments  of any cashless tolls as a factor to determine
     8  the consumer's credit worthiness, credit standing or credit capacity; or
     9    (ix) any other adverse information which antedates the report by  more
    10  than seven years.
    11    §  2.  Section 352 of the banking law is amended by adding a new ninth
    12  undesignated paragraph to read as follows:
    13    No licensee shall collect, evaluate, report or maintain in the file on
    14  a borrower the borrower's late payment of cashless tolls as a factor  to
    15  determine  the  borrower's  credit worthiness, credit standing or credit
    16  capacity. The provisions of this paragraph shall be enforced concurrent-
    17  ly by the superintendent and the director of the  division  of  consumer
    18  protection  and  each shall utilize their consumer complaint and assist-
    19  ance hotlines to document complaints by borrowers who believe that their
    20  late payment of cashless tolls is being used to deny  them  credit.  The
    21  superintendent  shall ensure that the credit scoring formulas filed with
    22  the department do not contain variables which account for  late  payment
    23  of  cashless  tolls  as  part  of that formula by asking the licensee to
    24  certify to that fact.
    25    § 3. This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07975-01-1