S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2282

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced by M. of A. JEFFRIES -- read once and referred to the Commit-
  tee on Consumer Affairs and Protection

AN  ACT  to  amend the general business law, in relation to credit score
  disclosure

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 380-u of the general business law, as relettered by
chapter  63  of  the laws of 2006, is relettered section 380-v and a new
section 380-u is added to read as follows:
  S 380-U. CREDIT SCORE DISCLOSURE. (A)(1) ANY VENDOR OFFERING  CONSUMER
CREDIT OF TWENTY-FIVE DOLLARS OR MORE SHALL DISCLOSE CREDIT SCORE QUALI-
FICATION LEVELS TO ALL APPLICANTS FOR CREDIT.
  (2)  A  VENDOR  SHALL  DISCLOSE  WITHIN TEN DAYS, TO ANY PERSON DENIED
CREDIT INCLUDING DENIAL FROM A PREFERRED  OFFER,  THE  ACTUAL  NUMERICAL
CREDIT  SCORE AND THE ANALYSIS USED TO CALCULATE SUCH SCORE ON WHICH THE
DENIAL WAS BASED. THE OPTION OF  INTERNET  ACCESS  FOR  SUCH  DISCLOSURE
SHALL  BE  PROVIDED  VIA A SECURE ACCESS CODE GIVEN TO THE PERSON DENIED
CREDIT.
  (3) IF A VENDOR RELIES UPON A CREDIT  REPORTING  AGENCY  TO  CALCULATE
CREDIT  SCORES,  SUCH  AGENCY SHALL BE DEEMED AN AGENT OF THE VENDOR AND
SHALL DISCLOSE THE CREDIT SCORE AND THE ANALYSIS USED BY SUCH AGENCY  TO
CALCULATE SUCH SCORE TO ANY APPLICANT FOR CREDIT.
  (4)  ANY  CONSUMER  SHALL  BE ENTITLED TO ONE CREDIT REPORT EVERY FOUR
MONTHS FROM ANY SINGLE VENDOR,  OR  ONE  REPORT  PER  MONTH  WHERE  SUCH
CONSUMER WAS SOLICITED FOR A CREDIT OFFER BY A VENDOR.
  (B)  (1)  DISCLOSURE  REQUIRED  PURSUANT  TO  SUBDIVISION  (A) OF THIS
SECTION SHALL PROVIDE SUCH  INFORMATION,  INCLUDING  NUMERICAL  AMOUNTS,
SUFFICIENT  TO  ALLOW  AN  AVERAGE CONSUMER TO VERIFY THE CALCULATION OF
THEIR CREDIT SCORE.
  (2) DISCLOSURE REQUIRED PURSUANT TO SUBDIVISION (A)  OF  THIS  SECTION
SHALL  PROVIDE  SPECIFIC  INFORMATION  AS TO HOW SUCH PERSON CAN IMPROVE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05174-01-9
              

A. 2282                             2

THEIR CREDIT SCORE, INCLUDING THE PRECISE NUMERICAL  AMOUNTS  ASSOCIATED
WITH  SPECIFIC SCORE INCREASING CREDIT ACTIVITIES. GENERAL REFERENCES TO
CREDIT  BUILDING  ACTIVITIES  WITHOUT  ACCOMPANYING  PRECISE   NUMERICAL
AMOUNTS  ASSOCIATED  WITH SPECIFIC SCORE INCREASING ACTIVITIES SHALL NOT
BE DEEMED  SUFFICIENT  TO  MEET  THE  DISCLOSURE  REQUIREMENTS  OF  THIS
SECTION.
  (C)  (1) FAILURE BY A VENDOR OR VENDOR'S AGENT TO MAKE DISCLOSURE TO A
CONSUMER PURSUANT TO THIS SECTION SHALL BE  DEEMED  AN  UNFAIR  BUSINESS
PRACTICE.
  (2)  THE  STATE OR COUNTY ATTORNEY GENERAL MAY SEEK ENFORCEMENT OF THE
PROVISIONS OF THIS SECTION INCLUDING THE IMPOSITION OF FINES OF  TWENTY-
FIVE  DOLLARS  PER  VIOLATION OR A SINGLE FINE OF FIVE THOUSAND DOLLARS,
WHICHEVER IS GREATER.
  S 2. Section 380-a of the general business law is amended by adding  a
new subdivision (o) to read as follows:
  (O) THE TERM "CREDIT SCORE" MEANS A NUMBER CALCULATED FROM A SYSTEM OF
POINTS  ASSIGNED  TO INFORMATION IN A CREDIT HISTORY REPORT AND UTILIZED
BY LENDERS TO IDENTIFY THE RISK LEVEL OF A CREDIT APPLICANT.
  S 3. This act shall take effect immediately.