The New York State Senate

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

                                  5294

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                            February 8, 2019
                               ___________

Introduced  by M. of A. CRESPO -- Multi-Sponsored by -- M. of A. ARROYO,
  BARRON, COLTON, COOK, DAVILA, DICKENS,  EPSTEIN,  HEVESI,  KIM,  McDO-
  NOUGH,  MONTESANO,  MOSLEY,  PICHARDO, RAIA, RAMOS, RIVERA, RODRIGUEZ,
  SIMON, WALLACE, WEPRIN, WRIGHT  --  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.

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

                                                           LBD02186-01-9

A. 5294                             2

  § 3. Section 2 of the banking law is amended by adding a new  subdivi-
sion 31 to read as follows:
  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.