NY State Senate Bill 2021-S775

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to consumer protection
Jan 06, 2021	referred to consumer protection

2021-S775 (ACTIVE) - Details

See Assembly Version of this Bill:: A559
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §380-j, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:: S8118, A10183

2021-S775 (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.

2021-S775 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S775

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 OR GENERAL IDEA OF BILL:

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:

2020: S.8118-B (Thomas)/A.10183-A (Rozic) - Amend and recommit to
Consumer Protection Committee.

 
FISCAL IMPLICATIONS:

None noted to the State.

 
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; 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 Super-
intendent of Financial Services shall notify the legislative bill draft-
ing commission upon the occurrence of the expiration of the state disas-
ter 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 commission may main-
tain 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 lawn and section 70-b of the
public officers law.

2021-S775 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    775
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 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  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.

                                                            LBD03448-01-1

 S. 775                              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 S775

Sponsored By

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

2021-S775 (ACTIVE) - Details

2021-S775 (ACTIVE) - Summary

2021-S775 (ACTIVE) - Sponsor Memo

2021-S775 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S775

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Sponsored By

Kevin Thomas

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

2021-S775 (ACTIVE) - Details

2021-S775 (ACTIVE) - Summary

2021-S775 (ACTIVE) - Sponsor Memo

2021-S775 (ACTIVE) - Bill Text download pdf

Comments