Prohibits consumer reporting agencies and lenders from using an individual's late payment of cashless tolls to determine their credit worthiness.
Summary
Bill A03055 seeks to amend the General Business Law and the Banking Law to prohibit consumer reporting agencies and lenders from considering an individual's late payments of cashless tolls when determining their credit worthiness. This legislation aims to protect consumers from potential negative impacts on their credit scores due to late toll payments, which are often seen as less indicative of a person's overall financial responsibility compared to other types of debt.
Impact
If enacted, this bill would significantly alter how late payments for cashless tolls are treated within the realm of credit reporting and lending practices in New York. Specifically, it would ensure that such late payments cannot be used as a factor in assessing an individual's credit worthiness, thereby potentially improving access to credit for consumers who may have incurred late toll charges. This change may also lead to a broader reevaluation of what constitutes relevant information in credit scoring formulas.
Sentiment
The sentiment surrounding Bill A03055 appears to be generally favorable, as evidenced by the voting history. The bill received support from the Assembly Consumer Affairs and Protection Committee, passing with a vote of 10-5, and subsequently garnered further approval in the Codes Committee with a vote of 16-4. The final passage on the Assembly floor saw a significant majority in favor, with 121 votes for and only 16 against, indicating strong legislative support for the bill.
Contention
While the bill has received substantial support, there may be concerns from some stakeholders, particularly within the financial services industry, regarding the implications of removing late cashless toll payments from credit assessments. Critics may argue that this could undermine the integrity of credit scoring systems and potentially lead to increased risk for lenders. However, proponents emphasize the need for fairer treatment of consumers who may face penalties for minor infractions that do not reflect their overall credit behavior.
Same As
Prohibits consumer reporting agencies and lenders from using an individual's late payment of cashless tolls to determine their credit worthiness.
Prohibits a consumer reporting agency or lender from using an individual's internet use or internet viewing history to determine such individual's credit worthiness.
Prohibits an insurer from utilizing information from a credit reporting agency or insurance credit scores from consumer reporting agency in determining certain insurance rates