Assembly Bill A5106

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5106
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 6, 2017
                                ___________
 
 Introduced  by  M.  of A. CRESPO, SEPULVEDA, RAMOS, PICHARDO, RODRIGUEZ,
   RIVERA, ARROYO, McDONOUGH, HOOPER, RAIA -- read once and  referred  to
   the Committee on Consumer Affairs and Protection
 
 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.
   §  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.
   § 3. Section 2 of the banking law is amended by adding a new  subdivi-
 sion 31 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08179-01-7

 A. 5106                             2
 
   31.  MEMBERS  OF  A  BORROWER'S SOCIAL NETWORK. THE TERM "MEMBERS OF A
 BORROWER'S SOCIAL NETWORK" MEANS A GROUP OF INDIVIDUALS AUTHORIZED BY  A
 BORROWER  TO  BE  PART  OF  HIS  OR  HER SOCIAL MEDIA COMMUNICATIONS AND
 NETWORK.
   §  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.
   § 5. This act shall take effect immediately.