What's happening
This bill directs a joint study on how utility, cable, and cellular companies report consumer late payments to credit agencies, with recommendations to protect consumers.
Why it matters
Examining Credit Reporting Practices. By requiring a comprehensive study of how utility, cable, and cellular companies report late payments to credit agencies, the bill addresses a major factor influencing consumer credit scores and financial opportunities.
Potential for Consumer Protections. The study aims to identify regulatory and legal changes necessary to protect consumers, which could lead to new safeguards preventing unfair credit score penalties for late payments on essential services.
Public Input and Transparency. Mandating public hearings ensures that consumer voices and concerns are heard, potentially highlighting real-world impacts and building a more transparent process around credit reporting practices.
Foundation for Legislative Reform. The findings and recommendations from the joint report could lay the groundwork for future state laws or regulations, shaping long-term policy on consumer credit rights and utility billing practices.
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Who cares
Headline styles
Study Utility Credit Reporting
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to energy and telecommunications
- Returned to senate
- Died in assembly
- Referred to consumer affairs and protection
- Delivered to assembly
- Passed senateVote 57–3
- Advanced to third reading
- 2nd report cal.
- 1st report cal.118
- 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
2355
2019-2020 Regular Sessions
IN SENATE
January 24, 2019
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.
LBD06942-01-9
S. 2355 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, 2019, 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, 2021.
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 commis- sion to jointly study and report upon the provision to consumer credit reporting agencies by public utility companies, cable television compa- nies 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 report- ing 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 neces- sary 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 nega- tively affected. Under this bill, the Department of State and Public Service Commission would examine this practice and report on any regula- tory or legislative recommendations necessary to protect consumers in this area.
Prior legislative history
2017/18 S5309 - Referred to Energy and Telecommunications
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.