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S T A T E O F N E W Y O R K
________________________________________________________________________
2692
2025-2026 Regular Sessions
I N A S S E M B L Y
January 22, 2025
___________
Introduced by M. of A. FORREST -- read once and referred to the Commit-
tee on Banks
AN ACT to amend the financial services law, in relation to establishing
a working group to create a pilot program for an alternative system to
a credit score
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The financial services law is amended by adding a new
2 section 312 to read as follows:
3 § 312. CREDITWORTHINESS ALTERNATIVE PILOT AND WORKING GROUP. 1. AS
4 USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
5 INGS:
6 (A) "CREDITWORTHINESS" MEANS A MEASURE OF HOW LIKELY AN INDIVIDUAL
7 WILL DEFAULT ON SUCH INDIVIDUAL'S DEBT OBLIGATIONS ACCORDING TO A LEND-
8 ER'S ASSESSMENT, OR HOW WORTHY AN INDIVIDUAL IS TO RECEIVE NEW CREDIT.
9 (B) "CREDIT SCORE" MEANS A NUMBER THAT PROVIDES A COMPARATIVE ESTIMATE
10 OF AN INDIVIDUAL'S CREDITWORTHINESS BASED ON AN ANALYSIS OF SUCH INDI-
11 VIDUAL'S CREDIT REPORT AND IS USED BY LENDERS TO EVALUATE THE RISK OF
12 LENDING MONEY OR OFFERING FINANCIAL SERVICES TO CONSUMERS.
13 2. THE SUPERINTENDENT SHALL FORM A WORKING GROUP TO CREATE A PILOT
14 PROGRAM TO DEVELOP AN ALTERNATIVE CREDIT WORTHINESS PROGRAM FOR INDIVID-
15 UALS WHO DO NOT HAVE A CREDIT SCORE; ARE UNBANKED, UNDOCUMENTED IMMI-
16 GRANTS, INDIGENT; OR WHO WOULD BENEFIT FROM SUCH A MECHANISM. MEMBERS OF
17 THE WORKING GROUP SHALL:
18 (A) BE APPOINTED BY THE SUPERINTENDENT AND SHALL INCLUDE REPRESEN-
19 TATIVES OF THE FINANCIAL INDUSTRY AND IMMIGRATION ADVOCATES;
20 (B) NOT RECEIVE COMPENSATION, BUT SHALL BE ELIGIBLE TO RECEIVE
21 REIMBURSEMENT FOR EXPENSES SUBJECT TO THE APPROVAL OF THE SUPERINTENDENT
22 AND THE DIVISION OF BUDGET;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03974-01-5
A. 2692 2
1 (C) LOOK AT MODELS FOR ALTERNATIVES TO TRADITIONAL CREDIT SCORES NOW
2 BEING DISCUSSED AND DEVELOPED BY THE CREDIT CARD INDUSTRY IN EUROPE,
3 AMONG OTHER MODELS SUCH MEMBERS DEEM APPROPRIATE; AND
4 (D) BE IN PLACE WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS
5 SECTION AND SHALL PROVIDE THE SUPERINTENDENT, THE GOVERNOR, AND THE
6 LEGISLATURE A REPORT CONTAINING SUCH WORKING GROUP'S RECOMMENDATIONS ON
7 HOW TO CREATE A PILOT PROGRAM WITHIN TWO HUNDRED SEVENTY DAYS OF THE
8 EFFECTIVE DATE OF THIS SECTION.
9 § 2. This act shall take effect immediately.