The New York State Senate

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

                                 9150--A

                          I N  A S S E M B L Y

                            January 29, 2016
                               ___________

Introduced  by  M.  of A. CRESPO, SEPULVEDA, RODRIGUEZ, RAMOS, PICHARDO,
  McDONOUGH -- read once and  referred  to  the  Committee  on  Consumer
  Affairs  and Protection -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the  general  business  law  and  the  banking  law,  in
  relation  to  prohibiting  a  consumer reporting agency or lender from
  using certain information to determine an individual's credit  worthi-
  ness

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

  Section 1. Section 380-a of the general business  law  is  amended  by
adding a new subdivision (u) to read as follows:
  (U) THE TERM "MEMBERS OF A CONSUMER'S SOCIAL NETWORK" MEANS A GROUP OF
INDIVIDUALS  AUTHORIZED  BY  A  CONSUMER TO BE PART OF HIS OR HER SOCIAL
MEDIA COMMUNICATIONS AND NETWORK.
  S 2. Section 380-j of the general business law is amended by adding  a
new subdivision (h) to read as follows:
  (H)  NO  CONSUMER REPORTING AGENCY SHALL COLLECT, EVALUATE, REPORT, OR
MAINTAIN IN THE FILE ON A CONSUMER THE CREDIT WORTHINESS, CREDIT  STAND-
ING  OR  CREDIT CAPACITY OF MEMBERS OF THE CONSUMER'S SOCIAL NETWORK FOR
PURPOSES OF DETERMINING THE CREDIT WORTHINESS OF THE CONSUMER; THE AVER-
AGE CREDIT WORTHINESS, CREDIT STANDING OR CREDIT CAPACITY OF MEMBERS  OF
THE  CONSUMER'S  SOCIAL  NETWORK;  OR  ANY  GROUP  SCORE THAT IS NOT THE
CONSUMER'S OWN CREDIT WORTHINESS, CREDIT STANDING  OR  CREDIT  CAPACITY.
THE PROVISIONS OF THIS SUBDIVISION SHALL BE ENFORCED CONCURRENTLY BY THE
SUPERINTENDENT OF FINANCIAL SERVICES AND THE DIRECTOR OF THE DIVISION OF
CONSUMER  PROTECTION AND EACH SHALL UTILIZE THEIR CONSUMER COMPLAINT AND
ASSISTANCE HOTLINES TO DOCUMENT COMPLAINTS BY CONSUMERS WHO BELIEVE THAT
GROUP CREDIT RATINGS OF THEIR SOCIAL MEDIA NETWORK  ARE  BEING  USED  TO
DENY THEM CREDIT.
  S  3. Section 2 of the banking law is amended by adding a new subdivi-
sion 30 to read as follows:
  30. MEMBERS OF A BORROWER'S SOCIAL NETWORK. THE  TERM  "MEMBERS  OF  A
BORROWER'S  SOCIAL NETWORK" MEANS A GROUP OF INDIVIDUALS AUTHORIZED BY A

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

                                                           LBD13003-02-6

A. 9150--A                          2

BORROWER TO BE PART OF  HIS  OR  HER  SOCIAL  MEDIA  COMMUNICATIONS  AND
NETWORK.
  S  4.  Section 352 of the banking law is amended by adding a new sixth
undesignated paragraph to read as follows:
  NO LICENSEE SHALL COLLECT, EVALUATE, REPORT OR MAINTAIN IN THE FILE ON
A BORROWER THE CREDIT WORTHINESS, CREDIT STANDING OR CREDIT CAPACITY  OF
MEMBERS OF THE BORROWER'S SOCIAL NETWORK FOR PURPOSES OF DETERMINING THE
CREDIT WORTHINESS OF THE BORROWER; THE AVERAGE CREDIT WORTHINESS, CREDIT
STANDING OR CREDIT CAPACITY OF MEMBERS OF THE BORROWER'S SOCIAL NETWORK;
OR  ANY  GROUP  SCORE  THAT IS NOT THE BORROWER'S OWN CREDIT WORTHINESS,
CREDIT STANDING OR CREDIT CAPACITY.   THE PROVISIONS OF  THIS  PARAGRAPH
SHALL BE ENFORCED CONCURRENTLY BY THE SUPERINTENDENT AND THE DIRECTOR OF
THE DIVISION OF CONSUMER PROTECTION AND EACH SHALL UTILIZE THEIR CONSUM-
ER COMPLAINT AND ASSISTANCE HOTLINES TO DOCUMENT COMPLAINTS BY BORROWERS
WHO  BELIEVE THAT GROUP CREDIT RATINGS OF THEIR SOCIAL MEDIA NETWORK ARE
BEING USED TO DENY THEM CREDIT. THE SUPERINTENDENT SHALL ENSURE THAT THE
CREDIT SCORING FORMULAS FILED WITH THE DEPARTMENT DO NOT  CONTAIN  VARI-
ABLES WHICH ACCOUNT FOR INTERNET VIEWING HISTORY AS PART OF THAT FORMULA
BY ASKING THE LICENSEE TO CERTIFY TO THAT FACT.
  S 5. This act shall take effect immediately.