NY State Senate Bill 2019-S8118

Senate Bill S8118

2019-2020 Legislative Session

Relates to prohibiting negative credit reporting on persons affected by the coronavirus

download bill text pdf

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 18, 2020	print number 8118b
May 18, 2020	amend and recommit to consumer protection
May 04, 2020	print number 8118a
May 04, 2020	amend (t) and recommit to consumer protection
Mar 23, 2020	referred to consumer protection

Bill Amendments

Original

B (Active)

co-Sponsors

View additional co-sponsors

2019-S8118 - Details

See Assembly Version of this Bill:: A10183
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §380-j, Gen Bus L
Versions Introduced in 2021-2022 Legislative Session:: S775, A559

2019-S8118 - Summary

Prohibits negative credit reporting on consumers who have suffered financial harm as a result of the declared state of emergency relating to the coronavirus.

2019-S8118 - Sponsor Memo

                                
 
BILL NUMBER: S8118

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
creditors from reporting certain adverse information during a declared
state of emergency

 
PURPOSE:

To prohibit credit reporting agencies from reporting or filing any new
adverse information on individuals who have been affected by coronavirus
disease 2019 (COVID-19).

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill prohibits creditors from reporting new adverse
information on individuals affected by coronavirus disease 2019

(COVID-19) to credit reporting agencies. To be affected by coronavirus

disease 2019 (COVID19) an individual must have suffered a financial harm
due to missed work related to the declared state emergency.

Section 2 is the effective date.

 
JUSTIFICATION:

During a state of emergency, the state and individuals' first priority
should be safety. To prioritize safety, individuals must be willing and
able to follow procedures recommended by experts. New York State's
Department of Health, an agency that employs countless health experts,
has recently recommended that to limit the spread of the coronavirus
(COVID-19) people should stay home when they show symptoms or are
infected.

Possible negative credit reporting can create uncertainty and unexpected
expenses for individual borrowers, which may affect individuals' choices
in following expert recommendations. New Yorkers will face higher risk
of exposure if health recommendations are not heeded. Many creditors
recognize this risk, and they take steps during declared emergencies to
assist individuals with managing their debts by suspending payments or
eliminating fees.

This bill would encourage affected New Yorkers prioritize safety by
prohibiting creditors from reporting any adverse information about a
consumer impacted by a declared state emergency to a credit-reporting
agency, thereby removing this potential financial consideration from a
health decision.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPACT ON THE STATE:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8118 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8118
 
                             I N  S E N A T E
 
                              March 23, 2020
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   creditors from reporting certain adverse information during a declared
   state of emergency
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 380-j of the general business  law  is  amended  by
 adding a new subdivision (i) to read as follows:
   (I)  NO  CREDITOR SHALL REPORT ANY NEW ADVERSE INFORMATION RELATIVE TO
 LATE PAYMENTS OR NON-PAYMENT OF CONSUMER DEBT OR OTHER  FINANCIAL  OBLI-
 GATIONS BY PERSONS AFFECTED BY THE CORONAVIRUS (COVID-19) DURING A PERI-
 OD  OF A DECLARED STATE EMERGENCY TO A CREDIT REPORTING AGENCY.  FOR THE
 PURPOSES OF THIS SUBDIVISION, "AFFECTED BY THE CORONAVIRUS"  SHALL  MEAN
 AN INDIVIDUAL WHO HAS SUFFERED FINANCIAL HARM DUE TO MISSED TIME OF WORK
 RELATED TO A DECLARED STATE OF EMERGENCY.
   § 2. This act shall take effect immediately.
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15847-02-0

co-Sponsors

View additional co-sponsors

2019-S8118A - Details

See Assembly Version of this Bill:: A10183
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §380-j, Gen Bus L
Versions Introduced in 2021-2022 Legislative Session:: S775, A559

2019-S8118A - Summary

Prohibits negative credit reporting on consumers who have suffered financial harm as a result of the declared state of emergency relating to the coronavirus.

2019-S8118A - Sponsor Memo

                                
 
BILL NUMBER: S8118A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting a
consumer reporting agency from reporting certain adverse information
during the state of emergency caused by the novel coronavirus pandemic;
and providing for the repeal of such provisions upon expiration thereof

 
PURPOSE:

To prohibit credit reporting agencies from reporting or filing any new
adverse information on individuals who have been affected by coronavirus
disease 2019 (COVID-19).

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill prohibits consumer reporting agencies from report-
ing new adverse information on individuals who notify the agency that
they have experienced financial hardship as a result of the coronavirus.

Any agency that receives notice of an individual's hardship must respond
to the individual and the Department of Financial Services (DFS) within
five days of receiving the request to disregard adverse information
connected to the coronavirus. A consumer reporting agency must include a
COVID-19 alert in the file of all individuals with verified hardships.

Section 2 is the effective date.

 
JUSTIFICATION:

During a state of emergency, the state and individuals' first priority
should be safety. To prioritize safety, individuals must be willing and
able to follow procedures recommended by experts. New York State's
Department of Health, an agency that employs countless health experts,
has recently recommended that to limit the spread of the coronavirus
(COVID-19) people should stay home when they show symptoms or are
infected.

Possible negative credit reporting can create uncertainty and unexpected
expenses for individual borrowers, which may affect individuals' choices
in following expert recommendations. New Yorkers will face higher risk
of exposure if health recommendations are not heeded. Many creditors
recognize this risk, and they take steps during declared emergencies to
assist individuals with managing their debts by suspending payments or
eliminating fees.  This bill would encourage affected New Yorkers prior-
itize safety by prohibiting creditors from reporting any adverse infor-
mation about a consumer impacted by a declared state emergency to a
credit-reporting agency, thereby removing this potential financial
consideration from a health decision.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPACT ON THE STATE:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately and be deemed to have been in
full force and effect on and after March 7, 2020

2019-S8118A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8118--A
 
                             I N  S E N A T E
 
                              March 23, 2020
                                ___________
 
 Introduced  by  Sens. THOMAS, BAILEY, BIAGGI, GAUGHRAN, GOUNARDES, HOYL-
   MAN, KRUEGER, METZGER, RIVERA, SEPULVEDA --  read  twice  and  ordered
   printed, and when printed to be committed to the Committee on Consumer
   Protection -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN  ACT  to amend the general business law, in relation to prohibiting a
   consumer reporting agency from reporting certain  adverse  information
   during  the state of emergency caused by the novel coronavirus pandem-
   ic; and providing for the repeal of such  provisions  upon  expiration
   thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 380-j of the general business  law  is  amended  by
 adding a new subdivision (i) to read as follows:
   (I)  (1)  NO  CONSUMER  REPORTING  AGENCY SHALL REPORT ANY NEW ADVERSE
 INFORMATION THAT IS A RESULT OF THE NOVEL  CORONAVIRUS PANDEMIC  (COVID-
 19)  IN  A CONSUMER REPORT PERTAINING TO AN AFFECTED PERSON WHO NOTIFIES
 THE AGENCY PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION.
   (2) FOR THE PURPOSES OF THIS SUBDIVISION, THE  FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:
   (I)    "AFFECTED  PERSON"  SHALL  MEAN  A RESIDENT OF NEW YORK WHO HAS
 SUFFERED FINANCIAL HARDSHIP AS A RESULT OF THE NOVEL CORONAVIRUS PANDEM-
 IC (COVID-19);
   (II) "THE NOVEL CORONAVIRUS PANDEMIC (COVID-19)" SHALL  REFER  TO  THE
 PERIOD OF THE STATE OF EMERGENCY DECLARED BY EXECUTIVE ORDER TWO HUNDRED
 TWO  ON  MARCH  SEVENTH,  TWO  THOUSAND  TWENTY AND FOR PURPOSES OF THIS
 SUBDIVISION SHALL INCLUDE A PERIOD OF NINETY DAYS FOLLOWING THE  CONCLU-
 SION OF SUCH STATE OF EMERGENCY.
   (3)  AN  AFFECTED PERSON MAY CONTACT ANY CONSUMER REPORTING AGENCY AND
 REQUEST THAT THE AGENCY DISREGARD ANY ADVERSE INFORMATION RELATED TO THE
 PERSON OBTAINED BY THE AGENCY  DURING  THE  NOVEL  CORONAVIRUS  PANDEMIC
 (COVID-19).  THE  AFFECTED  PERSON SHALL INCLUDE IN THE REQUEST PROOF OF
 FINANCIAL HARDSHIP RESULTING FROM THE CORONAVIRUS PANDEMIC.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15847-03-0

 S. 8118--A                          2
 
   (4) ANY CONSUMER  REPORTING  AGENCY  THAT  RECEIVES  A  REQUEST  SHALL
 RESPOND  TO THE AFFECTED PERSON AND THE SUPERINTENDENT OF THE DEPARTMENT
 OF FINANCIAL SERVICES WITHIN FIVE DAYS OF RECEIVING THE REQUEST.
   (5)  WHERE A CONSUMER HAS PROVIDED SUFFICIENT PROOF OF FINANCIAL HARD-
 SHIP, A CONSUMER REPORTING AGENCY THAT MAINTAINS A FILE ON THE  CONSUMER
 SHALL  INCLUDE  AN  ALERT  IN THAT FILE INDICATING THAT THE CONSUMER HAS
 BEEN IMPACTED BY THE CORONAVIRUS PANDEMIC AND SHALL PROVIDE  THAT  ALERT
 ALONG  WITH OR ACCOMPANYING ANY CONSUMER REPORT OR CREDIT SCORE PROVIDED
 BY THE AGENCY, BEGINNING ON THE DATE OF THE REQUEST, UNLESS THE CONSUMER
 REQUESTS THAT SUCH ALERT BE REMOVED.
   (6) NO CHARGE SHALL BE IMPOSED BY A CONSUMER REPORTING AGENCY PURSUANT
 TO SECTION THREE HUNDRED EIGHTY-D OF THIS ARTICLE WITH  RESPECT  TO  THE
 REQUEST MADE BY A CONSUMER PURSUANT TO THIS SUBDIVISION.
   (7)  THE PROVISIONS OF THIS SUBDIVISION SHALL BE ENFORCED CONCURRENTLY
 BY THE SUPERINTENDENT OF FINANCIAL SERVICES  AND  THE  DIRECTOR  OF  THE
 DIVISION OF CONSUMER PROTECTION.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after March 7, 2020;  provided
 that  the  provisions  of  this  act shall expire and be deemed repealed
 ninety days after the expiration of  the  declared  state  of  emergency
 relating  to  the  novel  coronavirus (COVID-19); and provided, further,
 that the superintendent of financial services shall notify the  legisla-
 tive  bill  drafting commission upon the occurrence of the expiration of
 the state disaster emergency declared by executive order number 202  and
 any  further amendments or modifications, and as may be further extended
 pursuant to section 28 of the executive law, in order that  the  commis-
 sion  may  maintain  an  accurate  and timely effective data base of the
 official text of the laws of the state of New  York  in  furtherance  of
 effectuating  the  provisions  of  section 44 of the legislative law and
 section 70-b of the public officers law.

co-Sponsors

View additional co-sponsors

2019-S8118B (ACTIVE) - Details

See Assembly Version of this Bill:: A10183
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §380-j, Gen Bus L
Versions Introduced in 2021-2022 Legislative Session:: S775, A559

2019-S8118B (ACTIVE) - Summary

Prohibits negative credit reporting on consumers who have suffered financial harm as a result of the declared state of emergency relating to the coronavirus.

2019-S8118B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8118B

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting a
consumer reporting agency from reporting certain adverse information
during the state of emergency caused by the novel coronavirus pandemic;
and providing for the repeal of such provisions upon expiration thereof

 
PURPOSE:

To prohibit credit reporting agencies from reporting new adverse infor-
mation that is a result of the novel coronavirus pandemic(COVID19).

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill prohibits consumer reporting agencies from report-
ing new adverse information that is a result of the novel coronavirus
for individuals who notify the agency that they have experienced finan-
cial hardship as a result of the coronavirus. Any agency that receives

notice of an individual's hardship must respond to the individual and
the Department of Financial Services (DFS) within five days of receiving
the request to disregard adverse information connected to the coronavi-
rus.

Section 2 is the effective date.

 
JUSTIFICATION:

During a state of emergency, the state and individuals' first priority
should be safety. To prioritize safety, individuals must be willing and
able to follow procedures recommended by experts. New York State's
Department of Health, an agency that employs countless health experts,
has recently recommended that to limit the spread of the coronavirus
(COVID-19) people should stay home when they show symptoms or are
infected.

Possible negative credit reporting can create uncertainty and, unex-
pected expenses for individual borrowers, which may affect individuals'
choices in following expert recommendations. New Yorkers will face high-
er risk of exposure if health recommendations are not heeded. Many cred-
itors recognize this risk, and they take steps during declared emergen-
cies to assist individuals with managing their debts by suspending
payments or eliminating fees.

This bill would encourage affected New Yorkers prioritize safety by
prohibiting consumer reporting agencies from reporting any adverse
information about a consumer impacted by a declared state emergency,
thereby removing this potential financial consideration from a health
decision.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPACT ON THE STATE:

None.
 
EFFECTIVE DATE:
This act shall take effect immediately and be deemed to have been in
full force and effect on and after March 7, 2020

2019-S8118B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8118--B
 
                             I N  S E N A T E
 
                              March 23, 2020
                                ___________
 
 Introduced  by  Sens. THOMAS, BAILEY, BIAGGI, GAUGHRAN, GOUNARDES, HOYL-
   MAN, KRUEGER, METZGER, RIVERA, SEPULVEDA --  read  twice  and  ordered
   printed, and when printed to be committed to the Committee on Consumer
   Protection -- committee discharged, bill amended, ordered reprinted as
   amended  and  recommitted  to  said committee -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee
 
 AN  ACT  to amend the general business law, in relation to prohibiting a
   consumer reporting agency from reporting certain  adverse  information
   during  the state of emergency caused by the novel coronavirus pandem-
   ic; and providing for the repeal of such  provisions  upon  expiration
   thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 380-j of the general business  law  is  amended  by
 adding a new subdivision (i) to read as follows:
   (I)  (1)  NO  CONSUMER  REPORTING  AGENCY SHALL REPORT ANY NEW ADVERSE
 INFORMATION THAT IS A RESULT OF THE NOVEL  CORONAVIRUS PANDEMIC  (COVID-
 19)  IN  A CONSUMER REPORT PERTAINING TO AN AFFECTED PERSON WHO NOTIFIES
 THE AGENCY PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION.
   (2) FOR THE PURPOSES OF THIS SUBDIVISION, THE  FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:
   (I)    "AFFECTED  PERSON"  SHALL  MEAN  A RESIDENT OF NEW YORK WHO HAS
 SUFFERED FINANCIAL HARDSHIP AS A RESULT OF THE NOVEL CORONAVIRUS PANDEM-
 IC (COVID-19);
   (II) "THE NOVEL CORONAVIRUS PANDEMIC (COVID-19)" SHALL  REFER  TO  THE
 PERIOD OF THE STATE OF EMERGENCY DECLARED BY EXECUTIVE ORDER TWO HUNDRED
 TWO  ON  MARCH  SEVENTH,  TWO  THOUSAND  TWENTY AND FOR PURPOSES OF THIS
 SUBDIVISION SHALL INCLUDE A PERIOD OF NINETY DAYS FOLLOWING THE  CONCLU-
 SION OF SUCH STATE OF EMERGENCY;
   (III)  "ADVERSE  INFORMATION THAT IS A RESULT OF THE NOVEL CORONAVIRUS
 PANDEMIC (COVID-19)" SHALL MEAN ANY  ADVERSE  INFORMATION  REGARDING  AN
 AFFECTED  PERSON'S  LATE  PAYMENTS,  DEFAULT, OR NON-PAYMENT OF CONSUMER
 DEBT OR OTHER FINANCIAL OBLIGATIONS, OR A CREDITOR'S EXERCISE  OF  REME-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15847-05-0

 S. 8118--B                          2
 
 DIES  ARISING FROM SUCH LATE PAYMENTS, DEFAULT, OR NON-PAYMENT WHERE THE
 EVENT OCCURS DURING THE NOVEL CORONAVIRUS PANDEMIC (COVID-19).
   (3)  AN  AFFECTED PERSON MAY CONTACT ANY CONSUMER REPORTING AGENCY AND
 REQUEST THAT THE AGENCY DISREGARD ANY  ADVERSE  INFORMATION  THAT  IS  A
 RESULT OF THE NOVEL CORONAVIRUS PANDEMIC (COVID-19). THE AFFECTED PERSON
 SHALL  INCLUDE IN THE REQUEST PROOF OF FINANCIAL HARDSHIP RESULTING FROM
 THE CORONAVIRUS PANDEMIC.
   (4) ANY CONSUMER  REPORTING  AGENCY  THAT  RECEIVES  A  REQUEST  SHALL
 RESPOND  TO THE AFFECTED PERSON AND THE SUPERINTENDENT OF THE DEPARTMENT
 OF FINANCIAL SERVICES WITHIN FIVE DAYS OF RECEIVING THE REQUEST.
   (5) NO CHARGE SHALL BE IMPOSED BY A CONSUMER REPORTING AGENCY PURSUANT
 TO SECTION THREE HUNDRED EIGHTY-D OF THIS ARTICLE WITH  RESPECT  TO  THE
 REQUEST MADE BY A CONSUMER PURSUANT TO THIS SUBDIVISION.
   (6)  THE PROVISIONS OF THIS SUBDIVISION SHALL BE ENFORCED CONCURRENTLY
 BY THE SUPERINTENDENT OF FINANCIAL SERVICES  AND  THE  DIRECTOR  OF  THE
 DIVISION OF CONSUMER PROTECTION.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after March 7, 2020;  provided
 that  the  provisions  of  this  act shall expire and be deemed repealed
 ninety days after the expiration of  the  declared  state  of  emergency
 relating  to  the  novel  coronavirus (COVID-19); and provided, further,
 that the superintendent of financial services shall notify the  legisla-
 tive  bill  drafting commission upon the occurrence of the expiration of
 the state disaster emergency declared by executive order number 202  and
 any  further amendments or modifications, and as may be further extended
 pursuant to section 28 of the executive law, in order that  the  commis-
 sion  may  maintain  an  accurate  and timely effective data base of the
 official text of the laws of the state of New  York  in  furtherance  of
 effectuating  the  provisions  of  section 44 of the legislative law and
 section 70-b of the public officers law.

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Senate Bill S8118

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Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Bill Amendments

co-Sponsors

2019-S8118 - Details

2019-S8118 - Summary

2019-S8118 - Sponsor Memo

2019-S8118 - Bill Text download pdf

co-Sponsors

2019-S8118A - Details

2019-S8118A - Summary

2019-S8118A - Sponsor Memo

2019-S8118A - Bill Text download pdf

co-Sponsors

2019-S8118B (ACTIVE) - Details

2019-S8118B (ACTIVE) - Summary

2019-S8118B (ACTIVE) - Sponsor Memo

2019-S8118B (ACTIVE) - Bill Text download pdf

Comments