BILL NUMBER: S3444

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general business law and the banking law, in
relation to prohibiting a consumer reporting agency or lender from using
an individual's late payment of cashless tolls to determine such indi-
vidual's credit worthiness

 
PURPOSE:

To ensure that no consumer is unnecessarily punished in terms of their
credit score/rating, creditworthiness and ability to access loans and
other financial instruments due to excessive and egregious fines and
other issues presented by cashless tolling systems.

 
SUMMARY OF PROVISIONS:

Section 1 amends the General Business Law to provide that no consumer
reporting agency shall report or maintain in the file on a consumer,
              

information on a consumer's late payment of cashless tolls.

Section 2 amends the Banking Law to provide that no banking institution
can use a consumer's late payment of cashless tolls as a factor to
determine creditworthiness, standing or capacity.

Section 3 indicates that the act shall take effect immediately.

 
JUSTIFICATION:

Cashless Tolling-which exists on all MTA Bridges and Tunnels-is merito-
rious to the extent it is designed to ease traffic flow and make
payment. of tolls more convenient for motorists; however, implementation
of the program has revealed a number of glaring challenges that require
our collective attention and planning for remediation.

Many residents in New York City and across the State are receiving exor-
bitant bills from the MTA for toll charges that are defined as overdue
and carry $100 fees per original charge. After less than 3 months past
due, residents are receiving fines as high as $100.00 for a toll as
small as $8.50. It is not uncommon for drivers to receive bills for a
handful of trips that have now multiplied into thousands of dollars in
fiduciary obligations. While it is no doubt important that the MTA
discourage late payment of toll obligations, and collect toll revenue to
keep the system operating efficiently, the current system features fees
that are extraordinarily excessive; a fee waiver policy that is unavail-
able for the public to understand and other features that  are simply
not pro-consumer.

After only a few months, the fees and fines associated with cashless
tolling-which many people may not even be aware they are accruing, and
which they may be accruing in error-are reported to credit reporting
agencies and then used as a factor in determining the creditworthiness,
standing and/or capacity of individuals. This causes permanent damage.
The flaws of the cashless tolling system should not be allowed to take a
permanent toll on the everyday lives of New Yorkers.

 
LEGISLATIVE HISTORY:
S7854-A COMRIE No Same as

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This law will take effect immediately.