Directs the department of state and the public service commission to study and report upon the prevalence of the disclosure by public utilities, cable television companies and cellular telephone service providers to credit reporting agencies of late payments and defaults in payment of fees and charges by consumers.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5592
SPONSOR: Lucas 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, 2024.
JUSTIFICATION:
Delinquent utility bills can hurt customer credit ratings if they are
reported to a credit bureau. Reporting a late payment of a utility bill
can be as harmful as any other late payment of a 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:
Bill Number A5367B 2024
2020/21 S2933A - Passed Senate
2019/20 S2355 REFERRED TO ENERGY AND TELECOMMUNICATIONS
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, 2025.
STATE OF NEW YORK
________________________________________________________________________
5592
2025-2026 Regular Sessions
IN ASSEMBLY
February 18, 2025
___________
Introduced by M. of A. LUCAS -- read once and referred to the Committee
on Consumer Affairs and Protection
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
companies and cellular telephone service suppliers of information on
late payments of or default on any fees or charges incurred by consum-
ers; and providing for the repeal of such provisions upon expiration
thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The department of state and the public service commission
2 shall jointly examine, evaluate and make recommendations concerning the
3 prevalence of reporting, disclosure and otherwise making available to
4 any consumer credit reporting agency, as defined in subdivision (k) of
5 section 380-a of the general business law, by any public utility company
6 as defined in subdivision 23 of section 2 of the public service law, any
7 municipality engaged in providing any public utility, any cable tele-
8 vision company as defined in subdivision 1 of section 212 of the public
9 service law, any wireless communications service supplier as defined in
10 subdivision 12 of section 301 of the county law, the Long Island power
11 authority or the power authority of the state of New York, any informa-
12 tion relating to the late payment of or default on the payment of any
13 charges or fees by consumers for the provision of any public utility or
14 other services or goods. The department and commission shall study, with
15 particular care, the practice of reporting consumer payment information
16 by the above entities to consumer credit reporting agencies and make
17 recommendations on the regulatory and statutory provisions necessary to
18 protect consumers in this area.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05863-01-5
A. 5592 2
1 § 2. The department of state and the public service commission shall
2 hold joint public hearings throughout the state for the purpose of
3 conducting their duties pursuant to section one of this act.
4 § 3. On or before December 31, 2026, the department of state and the
5 public service commission shall submit a joint report of their findings,
6 conclusions and recommendations to the governor and the legislature, and
7 shall submit with such report such regulatory and legislative proposals
8 as they deem necessary to implement their recommendations.
9 § 4. This act shall take effect immediately and shall expire and be
10 deemed repealed January 1, 2027.
