Limits the maintenance of information on credit inquiries

Title of bill

An act to amend the general business law, in relation to credit inquiries

Summary

This bill would prohibit consumer credit reporting agencies from retaining records detailing inquiries on consumer credit reports (requested by potential creditors) for more than ninety (90) days beyond the date of the inquiry.

Justification

Credit reporting vendors maintain records detailing the number and nature of inquiries made for a consumer credit report by possible credit sources. When such consumer report is requested by an interested party, the record of this inquiry becomes part of the consumer's credit line together with standard information relevant to credit worthiness. If a potential credit source notes a history of five (5) or more inquiries, it is considered a negative factor and may result in a denial of consumer credit.

While the record of existing sources of credit and outstanding loans together with an overall credit history are relevant factors in assessing a consumer's creditworthiness, records detailing mere inquiries for credit reports that have not ripened into either credit acceptance or rejection, are irrelevant.

This bill would rectify the inherent injustice that has prevailed as a result of an educated consumer's credit shopping. Consumer credit agencies, as a matter of law, would be required to purge all Inquiries made to a consumer's credit file after 90 days.

Fiscal implication

None to the State.

Effective date

This act shall take effect on the thirtieth day after it shall have become a law.