New York State Assembly Introduces Bill to Regulate Reporting of Customer Payment Information to Credit Agencies

The New York State Assembly has proposed a new bill that aims to require the Department of State and Public Service Commission to study and make recommendations on the practice of utility, cable, and telephone service providers reporting customer payment information to consumer credit reporting agencies. The bill's main objective is to protect consumers from suffering damaged credit scores due to late payments of utility bills. The Department and Commission would examine the prevalence of this practice and issue a report to the Governor and Legislature by December 31, 2024.

Key Takeaways:

• The bill would require the Department of State and Public Service Commission to study the reporting of customer payment information by utility, cable, and telephone service providers to consumer credit agencies.
• The study would aim to determine whether the State should regulate this practice to protect consumers from damaged credit scores.
• Delinquent utility bills can harm customer credit ratings if reported to a credit bureau, with late payments being as damaging as other types of late payments.
• Some companies do not report late payments to credit bureaus, while others report them, negatively affecting customers' credit scores.
• The bill would allow the Legislature to make informed decisions on regulating the reporting of customer payment information by service providers.
• The Department of State and Public Service Commission would provide recommendations on regulatory and statutory provisions necessary to protect consumers.
• The study would be completed by December 31, 2024, and would include recommendations for regulatory and legislative action.

Statistics:

• The bill aims to protect consumers from damaged credit scores due to late utility bill payments.
• Late payments of utility bills can be as damaging to credit scores as other types of late payments.
• Some companies do not report late payments to credit bureaus, while others do.
• The bill would provide the Legislature with necessary information to determine whether State regulation of reporting is necessary to protect consumers.
• The study would be completed by December 31, 2024.

Sources:

• New York State Assembly Bill AXXXXX (2023) ( exact bill number not provided in the text)
• 2020/21 S2933A (similar bill)
• 2019/20 S2355 (similar bill)
• 2017/18 S5309 (similar bill)
• 2015-16: S.7784 (similar bill)
• 2013-14:A.2338 (similar bill)
• 2009-2010: A.7817 (similar bill)