A 2692: Establishes a working group to create a pilot program for an alternative system to a credit score for unbanked persons, undocumented immigrants and any other individuals who would benefit from such alternative system.

  
  STATE OF NEW YORK ________________________________________________________________________ 2692 2025-2026 Regular Sessions  IN ASSEMBLY 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.