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
