Bill Text: NY S03444 | 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 9-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO CONSUMER PROTECTION [S03444 Detail]

Download: New_York-2021-S03444-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          3444

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 29, 2021
                                       ___________

        Introduced  by  Sens. COMRIE, ADDABBO, BAILEY, BROOKS, KRUEGER, PERSAUD,
          SANDERS, STAVISKY -- read twice and ordered printed, and when  printed
          to be committed to the Committee on Consumer 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