What's happening
This bill requires a joint study on how utility, cable, and cellular companies report late payments to credit agencies and recommends consumer protections.
Why it matters
Examines the impact on consumers’ credit. The study will analyze how late payment or default information from utility, cable, and cellular bills, when reported to credit agencies, can affect individuals’ credit scores and financial opportunities.
Evaluates current business practices. By scrutinizing how frequently and under what circumstances these companies report negative payment information, the study could reveal inconsistencies or areas where consumers may be unfairly penalized compared to other types of debt.
Public input and transparency. The requirement for public hearings ensures that consumers and advocates can voice concerns and share experiences, potentially shaping future regulations or protections.
Potential for new consumer safeguards. The report is tasked with recommending statutory and regulatory changes, meaning the process could lead to tangible new protections limiting when and how these companies can negatively impact a consumer’s credit, especially for essential services.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Study Utility Payment Reporting
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 61–1
- Ordered to third reading cal.2003
- Committee discharged and committed to rules
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Study Utility Credit Reporting
In Assembly Committee · Ways And Means · Sponsor Robert J. Rodriguez
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5039
2017-2018 Regular Sessions
IN SENATE
March 6, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to direct the department of state and the public service commission to jointly study and report upon the provision to consumer credit reporting agencies by public utility companies, cable television companies and cellular telephone service suppliers of information on late payments of or default on any fees or charges incurred by consumers; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The department of state and the public service commission shall jointly examine, evaluate and make recommendations concerning the prevalence of reporting, disclosure and otherwise making available to any consumer credit reporting agency, as defined in subdivision (k) of section 380-a of the general business law, by any public utility company as defined in subdivision 23 of section 2 of the public service law, any municipality engaged in providing any public utility, any cable television company as defined in subdivision 1 of section 212 of the public service law, any wireless communications service supplier as defined in subdivision 12 of section 301 of the county law, the Long Island power authority or the power authority of the state of New York, any information relating to the late payment of or default on the payment of any charges or fees by consumers for the provision of any public utility or other services or goods. The department and commission shall study, with particular care, the practice of reporting consumer payment information by the above entities to consumer credit reporting agencies and make recommendations on the regulatory and statutory provisions necessary to protect consumers in this area.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03966-01-7
S. 5039 2
§ 2. The department of state and the public service commission shall hold joint public hearings throughout the state for the purpose of conducting their duties pursuant to section one of this act.
§ 3. On or before December 31, 2018, the department of state and the public service commission shall submit a joint report of their findings, conclusions and recommendations to the governor and the legislature, and shall submit with such report such regulatory and legislative proposals as they deem necessary to implement their recommendations.
§ 4. This act shall take effect immediately and shall expire and be deemed repealed January 1, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to direct the department of state and the public service commission to jointly study and report upon the provision to consumer credit reporting agencies by public utility companies, cable television companies and cellular telephone service suppliers of information on late payments of or default on any fees or charges incurred by consumers; and providing for the repeal of such provisions upon expiration thereof
Purpose or general idea of bill
The purpose of this bill is to require the Department of State and Public Service Commission to study and make recommendations regarding the practice of utility, cable, and telephone service providers reporting customer payment information to consumer reporting agencies.
Summary of specific provisions
This bill would require the Department of State and Public Service Commission to study the prevalence of utility, cable, and telephone service providers reporting customer payment information to consumer reporting agencies. The Department and Commission would be tasked with making recommendations on the regulatory and statutory provisions necessary to protect consumers in this area and issuing a report to the Governor and Legislature by December 31, 2018.
Justification
Delinquent utility bills can hurt customer credit ratings if they are reported to a credit bureau. Reporting a late payment of utility bill can be as harmful as any other late payment of mortgage or credit card bill. The credit scores are calculated in different ways, depending on the credit bureau, however, it is common among all of them that a late payment flags the customer as a high-risk. A customer who pays a late fee once does not necessarily qualify for a high risk rating or being under the universal default status.
This bill would provide the Legislature with the information necessary to determine whether the State should regulate the reporting of customer payment information by utilities and other service providers in order to protect consumers from suffering damaged credit scores. Some companies do not report to the credit bureaus customers that have been paying their bills on a timely manner, which would help them improve their credit score. However, the same companies have been reporting customers that paid their bills late and have been charged a late fee. This makes customers pay extra for their service, while their credit score is negatively affected. Under this bill, the Department of State and Public Service Commission would examine this practice and report on any regulatory or legislative recommendations necessary to protect consumers in this area.
Prior legislative history
2015-16: S.7784 - Referred to Energy and Telecommunications 2013-14: A.2338 Similar Bill: 2009-2010: A.7817 - Referred to Consumer Affairs and Protection
Fiscal implications for state and local governments
To be determined.
Effective date
This act shall take effect immediately and shall expire and be deemed repealed January 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.