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
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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.