NY State Senate Bill 2017-S7854A

Senate Bill S7854A

2017-2018 Legislative Session

Prohibits consumer reporting agencies and lenders from using an individual's late payment of cashless tolls to determine their credit worthiness

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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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 12, 2018	print number 7854a
Jun 12, 2018	amend and recommit to consumer protection
Mar 05, 2018	referred to consumer protection

Bill Amendments

Original

A (Active)

co-Sponsors

View additional co-sponsors

2017-S7854 - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §380-j, Gen Bus L; amd §352, Bank L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S2778
2021-2022: S3444
2023-2024: S1109

2017-S7854 - Summary

Prohibits consumer reporting agencies and lenders from using an individual's late payment of cashless tolls to determine their credit worthiness.

2017-S7854 - Sponsor Memo

                                
 
BILL NUMBER: S7854

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 can use a consumer's late payment of cashless tolls as

a factor to determine creditworthiness, standing or capacity.

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:
New Bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This law will take effect immediately.

2017-S7854 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7854
 
                             I N  S E N A T E
 
                               March 5, 2018
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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  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
   individual's credit worthiness

   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 (h) to read as follows:
   (H) NO CONSUMER REPORTING AGENCY SHALL COLLECT, EVALUATE,  REPORT,  OR
 MAINTAIN  IN  THE  FILE ON A CONSUMER THE CONSUMER'S LATE PAYMENT OF ANY
 CASHLESS TOLLS AS A FACTOR TO DETERMINE THE  CONSUMER'S  CREDIT  WORTHI-
 NESS, CREDIT STANDING OR CREDIT CAPACITY.
   §  2. Section 352 of the banking law is amended by adding a new eighth
 undesignated paragraph to read as follows:
   NO LICENSEE SHALL COLLECT, EVALUATE, REPORT OR MAINTAIN IN THE FILE ON
 A BORROWER THE BORROWER'S LATE PAYMENT OF CASHLESS TOLLS AS A FACTOR  TO
 DETERMINE  THE  BORROWER'S  CREDIT WORTHINESS, CREDIT STANDING OR CREDIT
 CAPACITY. THE PROVISIONS OF THIS PARAGRAPH SHALL BE ENFORCED CONCURRENT-
 LY BY THE SUPERINTENDENT AND THE DIRECTOR OF THE  DIVISION  OF  CONSUMER
 PROTECTION  AND  EACH SHALL UTILIZE THEIR CONSUMER COMPLAINT AND ASSIST-
 ANCE HOTLINES TO DOCUMENT COMPLAINTS BY BORROWERS WHO BELIEVE THAT THEIR
 LATE PAYMENT OF CASHLESS TOLLS IS BEING USED TO DENY  THEM  CREDIT.  THE
 SUPERINTENDENT  SHALL ENSURE THAT THE CREDIT SCORING FORMULAS FILED WITH
 THE DEPARTMENT DO NOT CONTAIN VARIABLES WHICH ACCOUNT FOR  LATE  PAYMENT
 OF  CASHLESS  TOLLS  AS  PART  OF THAT FORMULA BY ASKING THE LICENSEE TO
 CERTIFY TO THAT FACT.
   § 3. This act shall take effect immediately.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14953-01-8

co-Sponsors

View additional co-sponsors

2017-S7854A (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §380-j, Gen Bus L; amd §352, Bank L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S2778
2021-2022: S3444
2023-2024: S1109

2017-S7854A (ACTIVE) - Summary

Prohibits consumer reporting agencies and lenders from using an individual's late payment of cashless tolls to determine their credit worthiness.

2017-S7854A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7854A

SPONSOR: COMRIE
 
TITLE OF BILL:  An act to amend the general business law and the bank-
ing law, in relation to prohibiting a consumer reporting agency or lend-
er from using an individual's late payment of cashless tolls to deter-
mine such individual'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:

New Bill.
 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This law will take effect immediately.

2017-S7854A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7854--A
 
                             I N  S E N A T E
 
                               March 5, 2018
                                ___________
 
 Introduced  by Sens. COMRIE, ADDABBO, BAILEY, BROOKS, CARLUCCI, KRUEGER,
   PERALTA, PERSAUD, SANDERS, STAVISKY -- read twice and ordered printed,
   and when  printed  to  be  committed  to  the  Committee  on  Consumer
   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 an individual's late payment of cashless tolls to determine such
   individual's credit worthiness
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraphs (vii) and (viii) of paragraph 1  of  subdivi-
 sion (f) of section 380-j of the general business law, as added by chap-
 ter 867 of the laws of 1977, are amended to read as follows:
   (vii) information relating to past confinement in a mental institution
 where  the  date  of  last confinement antedates the report by more than
 seven years; [or]
   (viii) LATE PAYMENTS OF ANY CASHLESS TOLLS AS A  FACTOR  TO  DETERMINE
 THE CONSUMER'S CREDIT WORTHINESS, CREDIT STANDING OR CREDIT CAPACITY; OR
   (IX)  any other adverse information which antedates the report by more
 than seven years.
   § 2. Section 352 of the banking law is amended by adding a new  eighth
 undesignated paragraph to read as follows:
   NO LICENSEE SHALL COLLECT, EVALUATE, REPORT OR MAINTAIN IN THE FILE ON
 A  BORROWER THE BORROWER'S LATE PAYMENT OF CASHLESS TOLLS AS A FACTOR TO
 DETERMINE THE BORROWER'S CREDIT WORTHINESS, CREDIT  STANDING  OR  CREDIT
 CAPACITY. THE PROVISIONS OF THIS PARAGRAPH SHALL BE ENFORCED CONCURRENT-
 LY  BY  THE  SUPERINTENDENT AND THE DIRECTOR OF THE DIVISION OF CONSUMER
 PROTECTION AND EACH SHALL UTILIZE THEIR CONSUMER COMPLAINT  AND  ASSIST-
 ANCE HOTLINES TO DOCUMENT COMPLAINTS BY BORROWERS WHO BELIEVE THAT THEIR
 LATE  PAYMENT  OF  CASHLESS TOLLS IS BEING USED TO DENY THEM CREDIT. THE
 SUPERINTENDENT SHALL ENSURE THAT THE CREDIT SCORING FORMULAS FILED  WITH
 THE  DEPARTMENT  DO NOT CONTAIN VARIABLES WHICH ACCOUNT FOR LATE PAYMENT
 OF CASHLESS TOLLS AS PART OF THAT FORMULA  BY  ASKING  THE  LICENSEE  TO
 CERTIFY TO THAT FACT.
   § 3. This act shall take effect immediately.

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14953-02-8

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Senate Bill S7854A

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Sponsored By

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

Bill Amendments

co-Sponsors

2017-S7854 - Details

2017-S7854 - Summary

2017-S7854 - Sponsor Memo

2017-S7854 - Bill Text download pdf

co-Sponsors

2017-S7854A (ACTIVE) - Details

2017-S7854A (ACTIVE) - Summary

2017-S7854A (ACTIVE) - Sponsor Memo

2017-S7854A (ACTIVE) - Bill Text download pdf

Comments