New York Governor Andrew Cuomo wants credit reporting agencies to comply with the state’s cybersecurity rule.
On Monday, he ordered the Department of Financial Services (DFS) to issue a new regulation requiring credit reporting firms to register with the state’s cybersecurity rule.
The recent Equifax data breach that impacted almost 150 million consumers prompted Gov. Cuomo’s directive.
Last week, Senator Elizabeth Warren launched an investigation into the Equifax because of its failure to provide necessary information about the breach. She also proposed a bill to stop credit reporting agencies from exploiting consumers.
New York raises standard for consumer protection
In a statement, the New York governor said, the credit history of a person affects every aspect of his life. His administration will “not sit idle while New Yorkers remain unprotected from cyberattacks due to lax security.”
According to Gov. Cuomo, the Equifax data breach is a wakeup call. Oversight of credit reporting agencies is important to ensure personal information is less vulnerable to cyberattacks and other nefarious acts.
With the regulation, New York is raising the standard for consumer protection. The state is hoping that the Equifax data breach will no longer happen again across the country.
Proposed regulation for credit reporting agencies
Under the proposed regulation, credit reporting agencies operating in New York must register with the DFS annually starting on or before February 1, 2018.
The DFS Superintendent may the renew registration of a credit reporting firm. He may deny the registration if there is a reason for revocation or suspension.
Additionally, DFS will examine credit reporting agencies as often as the Superintendent determines necessary.
Furthermore, the proposed regulation prohibits credit reporting agencies to:
- use any device, scheme, or trick to defraud or mislead consumers
- engage in any unfair, deceptive or predatory act toward any consumer
- misrepresent or omit any material information in connection with assembly, evaluation, or maintenance of a credit report for consumers in New York
- practice any unfair, deceptive or abusive act that violates section 1036 of the Dodd-Frank Wall Street Reform and Consumer Protection Act