Instructs the department of financial services to regulate consumer reporting agencies by requiring licensing of credit reporting agencies, and allowing the department to examine the books and records of consumer reporting agencies.
Summary
S04115 would add a new article to the Financial Services Law giving the New York State Department of Financial Services (DFS) direct authority over consumer reporting agencies, including credit reporting agencies. The bill defines consumer reporting agencies broadly and authorizes the superintendent of financial services to issue rules, rulings, and guidance to oversee their conduct.
The bill requires any person, partnership, association, or corporation engaged in credit reporting to obtain a license from DFS before operating in New York. License applications would have to be submitted under oath and include identifying and business information, with additional information required at the superintendent’s discretion. The superintendent would also be empowered to examine licensees’ books, accounts, records, files, offices, and personnel to detect violations and gather information needed for enforcement.
Impact
If enacted, the bill would create a new state licensing and supervisory framework for consumer reporting agencies, adding a layer of state regulation on top of existing federal consumer reporting law. It would expand DFS’s oversight authority by allowing examinations, record access, and rulemaking specific to credit reporting agencies, and it could affect both in-state and out-of-state entities that use interstate commerce to furnish consumer reports in New York. The bill would also allow DFS to exclude certain financial products and services from regulation, while preserving the superintendent’s fraud-enforcement authority under other laws.
Sentiment
The available context suggests the bill is regulatory in nature and aimed at strengthening oversight of the credit reporting industry, with no recorded committee debate or vote history provided. The sponsor’s approach indicates a consumer-protection and enforcement-oriented posture, likely intended to increase accountability and transparency among consumer reporting agencies. Because there are no transcripts or votes, there is no documented opposition or support in the record provided.
Contention
The main point of potential contention is the scope of state authority over consumer reporting agencies, especially the new licensing requirement and broad examination powers granted to DFS. Industry stakeholders could object to added compliance costs, duplicative oversight, or uncertainty about how state regulation would interact with federal credit reporting rules. Supporters would likely emphasize stronger consumer protections, improved oversight, and the ability of DFS to investigate misconduct and fraud more effectively.
Instructs the department of financial services to regulate consumer reporting agencies by requiring licensing of credit reporting agencies, and allowing the department to examine the books and records of consumer reporting agencies.
Requires that consumer reporting agencies contact consumers when a request is made for their consumer reports; requires consumer reporting agencies to provide the consumer with information pertaining to the entity that requested the consumer report.