What's happening
This bill creates a program to educate New Yorkers about their credit rights and responsibilities, with annual reports to the legislature.
Why it matters
Empowers consumers. By educating New Yorkers about their credit rights and obligations—including credit freezes, monitoring services, and credit reporting—the program aims to help individuals better protect and manage their financial reputations and security.
Addresses privacy and data breaches. The program specifically includes information about what constitutes private information, notification requirements following data breaches, and how to mitigate harm if personal information is compromised, which is increasingly important in a digital economy.
Promotes accountability and transparency. The requirement for annual reports to the governor and legislature ensures ongoing evaluation and public oversight of the outreach program’s effectiveness, potentially leading to continual improvements in consumer protection efforts.
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Who cares
Headline styles
Teach Credit Rights
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Referred to banks
- Referred to banks
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
134
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the financial services law, in relation to a public education program about the rights of consumers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The financial services law is amended by adding a new article 7 to read as follows:
ARTICLE 7
CONSUMER CREDIT RIGHTS AND RESPONSIBILITIES OUTREACH PROGRAM Section 701. Consumer credit rights and responsibilities outreach
program established.
§ 701. Consumer credit rights and responsibilities outreach program established. 1. There is hereby established within the department a consumer credit rights and responsibilities outreach program to educate the public about the rights and obligations of citizens of the state of New York with regard to credit services and reporting, including information such as, but not limited to, (a) credit freezes; (b) credit monitoring services; (c) credit reporting; (d) the contents of and access to credit scores; (e) the definition of private information as defined in section eight hundred ninety-nine-aa of the general business law; (f) notification requirements under section eight hundred ninety-nine-aa of the general business law; (g) mitigating the effects of a breach of private information; and (h) the rights of consumers over their personal information as it is related to third parties.
2. The superintendent shall submit on or before December first next succeeding the effective date of this section and annually thereafter, a report to the governor and the legislature concerning the operation of the consumer credit rights and responsibilities outreach program. Commencing in the year after the first year of such program, such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05341-01-9
S. 134 2
reports shall include the experience of the program in providing outreach and education to the public on the issue of the rights and obligations of the citizens of the state of New York with regard to credit services and reporting.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the financial services law, in relation to a public education program about the rights of consumers
Purpose
Directs DFS to implement a public education and outreach program about the rights of consumers over their credit information.
Summary of provisions
Section 1 - Directs DFS to implement a public education and outreach program about the rights of consumers over their credit information.
Section 2 - Effective date.
Justification
Recent headlines have been dominated by a massive data breach that impacted the largest credit-reporting firm in the United States. This breach is estimated to have effected 143 million Americans, or 4496 of the population. Millions suddenly found that their birthdates, home addresses, telephone numbers, and, in some cases, even their social security numbers and drivers license numbers had been leaked.
The implications of such a large scale and egregious breach of consumer data security are serious. Millions have been exposed to the possibility of becoming victims of identity theft. This can lead to ongoing credit problems and major costs to consumers to remedy the damage done. We must do more to make sure that data breaches are prevented. But just as important, is making sure consumers and law enforcement have the tools available to mitigate damage as soon as a breach occurs. This bill, part of a larger package that will target consumer data breaches at every stage, will provide one of those tools.
This bill will require the Department of Financial Services to implement a public education and outreach program about the rights of consumers over their credit information. This program will cover areas such as credit freezes, credit monitoring, credit reports, notification rights, and the definition of private information under state law, among other things.
Legislative history
2017-18: S6914a - BANKS
Fiscal implications
None to the state.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.