Bill Text: NY A05294 | 2019-2020 | General Assembly | Introduced
Bill Title: Prohibits a consumer reporting agency or lender from using the credit scores of members of an individual's social network to determine the credit worthiness of such individual.
Spectrum: Moderate Partisan Bill (Democrat 26-3)
Status: (Passed) 2019-11-25 - signed chap.540 [A05294 Detail]
Download: New_York-2019-A05294-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5294 2019-2020 Regular Sessions IN ASSEMBLY February 8, 2019 ___________ Introduced by M. of A. CRESPO -- Multi-Sponsored by -- M. of A. ARROYO, BARRON, COLTON, COOK, DAVILA, DICKENS, EPSTEIN, HEVESI, KIM, McDO- NOUGH, MONTESANO, MOSLEY, PICHARDO, RAIA, RAMOS, RIVERA, RODRIGUEZ, SIMON, WALLACE, WEPRIN, WRIGHT -- read once and referred to the Committee 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 certain information to determine an individual's credit worthi- ness The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 380-a of the general business law is amended by 2 adding a new subdivision (u) to read as follows: 3 (u) The term "members of a consumer's social network" means a group of 4 individuals authorized by a consumer to be part of his or her social 5 media communications and network. 6 § 2. Section 380-j of the general business law is amended by adding a 7 new subdivision (h) to read as follows: 8 (h) No consumer reporting agency shall collect, evaluate, report, or 9 maintain in the file on a consumer the credit worthiness, credit stand- 10 ing or credit capacity of members of the consumer's social network for 11 purposes of determining the credit worthiness of the consumer; the aver- 12 age credit worthiness, credit standing or credit capacity of members of 13 the consumer's social network; or any group score that is not the 14 consumer's own credit worthiness, credit standing or credit capacity. 15 The provisions of this subdivision shall be enforced concurrently by the 16 superintendent of financial services and the director of the division of 17 consumer protection and each shall utilize their consumer complaint and 18 assistance hotlines to document complaints by consumers who believe that 19 group credit ratings of their social media network are being used to 20 deny them credit. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02186-01-9A. 5294 2 1 § 3. Section 2 of the banking law is amended by adding a new subdivi- 2 sion 31 to read as follows: 3 31. Members of a borrower's social network. The term "members of a 4 borrower's social network" means a group of individuals authorized by a 5 borrower to be part of his or her social media communications and 6 network. 7 § 4. Section 352 of the banking law is amended by adding a new sixth 8 undesignated paragraph to read as follows: 9 No licensee shall collect, evaluate, report or maintain in the file on 10 a borrower the credit worthiness, credit standing or credit capacity of 11 members of the borrower's social network for purposes of determining the 12 credit worthiness of the borrower; the average credit worthiness, credit 13 standing or credit capacity of members of the borrower's social network; 14 or any group score that is not the borrower's own credit worthiness, 15 credit standing or credit capacity. The provisions of this paragraph 16 shall be enforced concurrently by the superintendent and the director of 17 the division of consumer protection and each shall utilize their consum- 18 er complaint and assistance hotlines to document complaints by borrowers 19 who believe that group credit ratings of their social media network are 20 being used to deny them credit. The superintendent shall ensure that the 21 credit scoring formulas filed with the department do not contain vari- 22 ables which account for internet viewing history as part of that formula 23 by asking the licensee to certify to that fact. 24 § 5. This act shall take effect immediately.