New York Senate Bill S02198

New York 2025-2026 Regular Session

• Introduced: 1/15/25
• Refer: 1/15/25
• Refer: 1/7/26

Caption

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

Summary

Bill S02198 seeks to amend the general business law and the banking law in New York by prohibiting consumer reporting agencies and lenders from using an individual's late payments of cashless tolls as a factor in determining their credit worthiness. This legislation aims to protect consumers from potential negative impacts on their credit scores due to late payments for tolls, which are often unavoidable and not indicative of a person's overall financial responsibility.

Impact

If enacted, this bill will significantly alter how credit worthiness is assessed in New York, specifically by excluding late payments for cashless tolls from credit evaluations. This change may lead to improved credit scores for individuals who have experienced late toll payments, thereby enhancing their ability to secure loans and other forms of credit. Additionally, it will require consumer reporting agencies and lenders to adjust their credit scoring formulas to comply with this new regulation.

Sentiment

The general sentiment around Bill S02198 appears to be supportive, particularly among consumer advocacy groups who argue that late toll payments should not adversely affect an individual's credit score. However, there may be concerns from financial institutions regarding the implications of this change on their risk assessment processes.

Contention

Notable points of contention may arise from financial institutions that rely on comprehensive credit evaluations, as they might argue that excluding late toll payments could lead to higher risks in lending. Conversely, consumer advocates strongly support the bill, emphasizing the need for fair treatment of consumers who may face financial difficulties that lead to late toll payments.