What's happening
This bill prohibits credit agencies and lenders in New York from using late payments of cashless tolls to assess creditworthiness.
Why it matters
Prevents minor administrative issues, like missed toll payments, from negatively impacting a person’s credit score. , which can have long-lasting effects on their access to loans, housing, and even employment.
Aims to protect lower-income individuals and frequent drivers who may be disproportionately affected by cashless toll systems. (where bills can get lost or be delayed), reducing the risk that a minor oversight leads to major financial consequences.
Requires oversight and enforcement by both the banking superintendent and consumer protection officials. , including hotlines for consumers to report violations, increasing accountability for lenders and credit agencies.
Mandates that lenders certify their credit scoring models do not include late cashless toll payments as a factor. , which could lead to greater transparency and fairness in how creditworthiness is determined in New York.
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Who cares
Headline styles
Toll Payments Won’t Hurt Credit
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
History
- Referred to consumer protection
- Referred to consumer protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2778
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sens. COMRIE, ADDABBO, BAILEY, BROOKS, CARLUCCI, KRUEGER, PERSAUD, SANDERS, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law and the banking law, in relation to prohibiting a consumer reporting agency or lender from using an individual's late payment of cashless tolls to determine such individual's credit worthiness
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraphs (vii) and (viii) of paragraph 1 of subdivision (f) of section 380-j of the general business law, as added by chapter 867 of the laws of 1977, are amended to read as follows:
(vii) information relating to past confinement in a mental institution where the date of last confinement antedates the report by more than seven years; [or]
(viii) late payments of any cashless tolls as a factor to determine the consumer's credit worthiness, credit standing or credit capacity; or
(ix) any other adverse information which antedates the report by more than seven years.
§ 2. Section 352 of the banking law is amended by adding a new eighth undesignated paragraph to read as follows:
No licensee shall collect, evaluate, report or maintain in the file on a borrower the borrower's late payment of cashless tolls as a factor to determine the borrower's credit worthiness, credit standing or credit capacity. The provisions of this paragraph shall be enforced concurrently by the superintendent and the director of the division of consumer protection and each shall utilize their consumer complaint and assistance hotlines to document complaints by borrowers who believe that their late payment of cashless tolls is being used to deny them credit. The superintendent shall ensure that the credit scoring formulas filed with the department do not contain variables which account for late payment of cashless tolls as part of that formula by asking the licensee to certify to that fact.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02911-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law and the banking law, in relation to prohibiting a consumer reporting agency or lender from using an individual's late payment of cashless tolls to determine such indi- vidual's credit worthiness
Purpose
To ensure that no consumer is unnecessarily punished in terms of their credit score/rating, creditworthiness and ability to access loans and other financial instruments due to excessive and egregious fines and other issues presented by cashless tolling systems.
Summary of provisions
Section 1 amends the General Business Law to provide that no consumer reporting agency shall report or maintain in the file on a consumer, information on a consumer's late payment of cashless tolls.
Section 2 amends the Banking Law to provide that no banking institution can use a consumer's late payment of cashless tolls as a factor to determine creditworthiness, standing or capacity.
Section 3 indicates that the act shall take effect immediately.
Justification
Cashless Tolling-which exists on all MTA Bridges and Tunnels-is merito- rious to the extent it is designed to ease traffic flow and make payment of tolls more convenient for motorists; however, implementation of the program has revealed a number of glaring challenges that require our collective attention and planning for remediation.
Many residents in New York City and across the State are receiving exor- bitant bills from the MTA for toll charges that are defined as overdue and carry $100 fees per original charge. After less than 3 months past due, residents are receiving fines as high as $100.00 for a toll as small as $8.50. It is not uncommon for drivers to receive bills for a handful of trips that have now multiplied into thousands of dollars in fiduciary obligations. While it is no doubt important that the MTA discourage late payment of toll obligations, and collect toll revenue to keep the system operating efficiently, the current system features fees that are extraordinarily excessive; a fee waiver policy that is unavail- able for the public to understand and other features that are simply not pro-consumer.
After only a few months, the fees and fines associated with cashless tolling-which many people may not even be aware they are accruing, and which they may be accruing in error-are reported to credit reporting agencies and then used as a factor in determining the creditworthiness, standing and/or capacity of individuals. This causes permanent damage. The flaws of the cashless tolling system should not be allowed to take a permanent toll on the everyday lives of New Yorkers.
Legislative history
S7854-A COMRIE No Same as
Fiscal implications
To be determined.
Effective date
This law will take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.