What's happening
This bill prohibits credit agencies from reporting new negative credit information for New York federal employees affected by government furloughs.
Why it matters
Protects federal employees from credit damage due to missed payments caused by government furloughs. , ensuring that temporary loss of income from a shutdown doesn’t have long-term negative effects on their credit reports.
Limits the timeframe for adverse information collection. , barring credit agencies from reporting new negative marks obtained during the furlough and for 90 days after it ends, giving affected employees a buffer period to recover financially.
Requires employees to prove eligibility. , meaning New York state residency and federal employment status during the furlough must be documented, preventing misuse while providing relief to those genuinely impacted.
Clarifies that only adverse information generated during the furlough is shielded. , so any pre-existing negative credit information remains reportable, maintaining the integrity of credit reporting before the furlough began.
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Who cares
Headline styles
Protect Furloughed Workers’ Credit
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to consumer protection
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.116
- Referred to consumer protection
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.
Protect Furloughed Workers’ Credit
In Assembly Committee · Consumer Affairs And Protection · Sponsor Michael DenDekker
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2898
2019-2020 Regular Sessions
IN SENATE
January 30, 2019
Introduced by Sen. THOMAS -- 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, in relation to adverse information in credit reports of certain furloughed federal government employees
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 380-v of the general business law, as relettered by chapter 441 of the laws of 2014, is renumbered section 380-w and a new section 380-v is added to read as follows:
§ 380-v. Furloughed federal employees. No consumer reporting agency shall report or maintain in the consumer report or file of a consumer any new adverse information on a consumer who is a federal employee impacted by a federal government furlough as set forth in this section, which was obtained by the consumer reporting agency during such furlough period. A credit reporting agency may report adverse information on a consumer beginning ninety days after the end of a furlough period provided that no such adverse information shall have been derived or obtained during the furlough period. The provisions of this section shall not apply to adverse information developed or reported prior to a federal government furlough. The provisions of this section shall apply to New York residents employed by the federal government who are furloughed or who have been designated non-pay federal employees and who have not received their regular salary or wages due to a federal government furlough which lasts at least one pay period from the start of such furlough. A consumer shall have the burden of establishing that they are a New York state resident, a federal employee, and that they have been impacted by a federal government furlough. Proof of New York state residency may be made by a utility bill or driver's license. A pay stub issued within thirty days shall be proof of federal employment.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08913-04-9
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, in relation to adverse infor- mation in credit reports of certain furloughed federal government employees
Purpose or general idea of bill
Prohibit credit reporting agencies from reporting or filing any new adverse information on furloughed or non-pay federal employees.
Summary of provisions
Section one of the bill amends the general business law by adding a new Section, 380-v.
- Section 380-v prohibits credit reporting agencies from filing or reporting any new adverse information on furloughed or non-pay federal employees. Such new negative credit reporting for furloughed employees is allowed once ninety days have passed since the end of the furlough period, provided that the information used in the determination is not related to the furlough or derived during the furlough.
- Section 380-v requires New York residents to prove their residency, federal employee status, and that they have been impacted by the furlough. New Yorkers can prove residency by presenting a utility bill or NYS driver's license, and prove federal employment by presenting a recent paystub.
Section two states the bill's effective date, which is immediately when this bill becomes a law.
Justification
The partial Federal Government shutdown that began in December of 2018 and ended in January of 2019 was the longest government shutdown to date. This shutdown affected 800,000 federal employees nationwide, and 14,000 New York residents who are federal employees. These individuals worked without pay (or not work at all) for several weeks.
Fortunately, many of these employees were able to meet financial obli- gations by withdrawing savings, borrowing from family, and in some cases taking out zero-interest loans from their banks. However, not all New York residents that are federal employees were able to meet these obli- gations, and many were forced to miss payments on bills for rent, mort- gage, credit card, car loans, and other financial obligations. Since late payments are often accompanied by fees, many of our residents were unfairly levied with additional costs, as they had no control over their employment situation. This was not the only cost that furloughed employ- ees faced. Missed payments are often included in credit reports for about seven years, potentially hurting the credit scores of some of the 14,000 New Yorkers that were affected by the furlough. Clearly, because the shutdown was not predictable and has no bearing on the creditworthi- ness of these New Yorkers, it is unfair for unanticipated situation to negatively impact the financial futures of these New Yorkers. This bill will provide assurance to our public servants during furlough periods, allowing them to be confident that, at least for their credit scores, they will not be financially penalized for actions beyond their control.
Prior legislative history
New Bill.
Fiscal implications to state and local governments
No cost to the state.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.