Assembly Bill A2692

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2692
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2025
                                ___________
 
 Introduced  by M. of A. FORREST -- read once and referred to the Commit-
   tee on Banks
 
 AN ACT to amend the financial services law, in relation to  establishing
   a working group to create a pilot program for an alternative system to
   a credit score
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The financial services law  is  amended  by  adding  a  new
 section 312 to read as follows:
   §  312.  CREDITWORTHINESS  ALTERNATIVE  PILOT AND WORKING GROUP. 1. AS
 USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   (A) "CREDITWORTHINESS" MEANS A MEASURE OF  HOW  LIKELY  AN  INDIVIDUAL
 WILL  DEFAULT ON SUCH INDIVIDUAL'S DEBT OBLIGATIONS ACCORDING TO A LEND-
 ER'S ASSESSMENT, OR HOW WORTHY AN INDIVIDUAL IS TO RECEIVE NEW CREDIT.
   (B) "CREDIT SCORE" MEANS A NUMBER THAT PROVIDES A COMPARATIVE ESTIMATE
 OF AN INDIVIDUAL'S CREDITWORTHINESS BASED ON AN ANALYSIS OF  SUCH  INDI-
 VIDUAL'S  CREDIT  REPORT  AND IS USED BY LENDERS TO EVALUATE THE RISK OF
 LENDING MONEY OR OFFERING FINANCIAL SERVICES TO CONSUMERS.
   2. THE SUPERINTENDENT SHALL FORM A WORKING GROUP  TO  CREATE  A  PILOT
 PROGRAM TO DEVELOP AN ALTERNATIVE CREDIT WORTHINESS PROGRAM FOR INDIVID-
 UALS  WHO  DO  NOT HAVE A CREDIT SCORE; ARE UNBANKED, UNDOCUMENTED IMMI-
 GRANTS, INDIGENT; OR WHO WOULD BENEFIT FROM SUCH A MECHANISM. MEMBERS OF
 THE WORKING GROUP SHALL:
   (A) BE APPOINTED BY THE SUPERINTENDENT  AND  SHALL  INCLUDE  REPRESEN-
 TATIVES OF THE FINANCIAL INDUSTRY AND IMMIGRATION ADVOCATES;
   (B)  NOT  RECEIVE  COMPENSATION,  BUT  SHALL  BE  ELIGIBLE  TO RECEIVE
 REIMBURSEMENT FOR EXPENSES SUBJECT TO THE APPROVAL OF THE SUPERINTENDENT
 AND THE DIVISION OF BUDGET;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03974-01-5
 A. 2692                             2
 
              

   (C) LOOK AT MODELS FOR ALTERNATIVES TO TRADITIONAL CREDIT  SCORES  NOW
 BEING  DISCUSSED  AND  DEVELOPED  BY THE CREDIT CARD INDUSTRY IN EUROPE,
 AMONG OTHER MODELS SUCH MEMBERS DEEM APPROPRIATE; AND
   (D)  BE  IN  PLACE  WITHIN  NINETY  DAYS OF THE EFFECTIVE DATE OF THIS
 SECTION AND SHALL PROVIDE THE  SUPERINTENDENT,  THE  GOVERNOR,  AND  THE
 LEGISLATURE  A REPORT CONTAINING SUCH WORKING GROUP'S RECOMMENDATIONS ON
 HOW TO CREATE A PILOT PROGRAM WITHIN TWO HUNDRED  SEVENTY  DAYS  OF  THE
 EFFECTIVE DATE OF THIS SECTION.
   § 2. This act shall take effect immediately.