| Entities | New York (10) |
| Topics and Issues | Accuracy (39) Credit-based Insurance Scores (CBIS) (24) Disputes (45) Economic abuse (2) Medical debt (39) |
Two new York Assembly committees held a hearing on December 6 “[t]oo examine the accuracy and effectiveness of consumer credit reports and opportunities to improve and modernize the credit reporting system.” The hearing was called by Nily Rozic, the Chair of the Assembly Committee on Consumer Affairs and Protection, and by Patricia Fahy, the Chair of the Committee on Banks.
CDIA filed a letter to the committees in advance of the hearing.
The hearing video is online from the Assembly. CDIA prepared an unofficial transcript of the hearing.
The hearing notice points out that
In recent years, studies from the Federal Trade Commission (FTC) have shown that as many as one in four consumers may have a “material error” in their consumer credit reports. Far too often, correcting such errors involves an arduous process that leaves many consumers frustrated and penalized by mistakes made by the credit bureaus. Additional challenges over the last several years from the COVID-19 pandemic, and more recently from disrupted markets and soaring consumer prices, have exacerbated many of these difficulties for New Yorkers. The need to make credit reports and scores fairer and more transparent is becoming increasingly important as these reports are used in a variety of different ways and have a far-reaching impact on our daily lives, including decisions on loan applications, mortgages, interest rates, and employment. This hearing seeks to solicit input on the accuracy and effectiveness of consumer credit reports and examine ways in which New York State may improve and modernize the credit reporting system.
There were four witnesses,
- Christopher D’Angelo, Chief Deputy Attorney General for Economic Justice, New York State Office of the Attorney General. OAG Testimony – 2022 12 05
- Charles Bell, Programs Director, Consumer Reports. Consumer Reports Testimony – 2022 12 05
- Carrie Tracy, Senior Director, Health Initiatives, Community Service Society of New York. Consumer Service Society Testimony – 2022 12 05
- Wilfredo Lopez, Director of Government Affairs, Urban Resource Institute. Urban Institute – Testimony – 2022 12 05
Bills discussed at the hearing:
- A. 2484 by Niou. Relates to requiring credit reporting agencies contact consumers when an inquiry is made into their credit history.
- A. 4681 by Reyes, Karines. Relates to rental discrimination based upon consumer credit history.
- A. 6388/A. 1161-A by Dinowitz, Jeffrey. Prohibits the disclosure or use of consumer credit history in hiring, employment and licensing determinations.
- A. 7218 by Pretlow, Gary J. Directs the superintendent of financial services to promulgate rules and regulations limiting the use of credit scores to determine automobile insurance premiums.
- A. 8126 by Niou. Prohibits using a consumer’s credit score to determine such consumer’s access, price, or premium for any insurance policy or other service such consumer is mandated by the state to purchase
- A. 10667 by Rosenthal, Linda B. Establishes a right of action for claims arising out of coerced debts.
Assembly Members present:
- Nily Rozic (D-Queens), Chair, Consumer Affairs and Protection
- Patricia Fahy (D-Albany), Chair, Banks.
- Jodi Giglio (R-Nassau Co.). Member of Assembly Consumer Affairs and Protection
- Yuh-Line Niou (D-Lower East Side). Member of Assembly Consumer Affairs and Protection*
- Brian Manktelow (R-Wayne Co.). Member of Banks.
- John Lamondes (R-Cayuga Co.). Member of Banks.
- Joseph Angelino (R-Binghamton). Member of Banks
* Outgoing member.