NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3055
SPONSOR: Carroll R TITLE OF BILL:
An act to amend the general business law and the banking law, in
relation to prohibiting a consumer reporting agency or lender from using
an individual's late payment of cashless tolls to determine such indi-
vidual's credit worthiness
PURPOSE:
To ensure that no consumer is unnecessarily punished in terms of their
credit score/rating, creditworthiness and ability to access loans and
other financial instruments due to excessive and egregious fines and
other issues presented by cashless tolling systems.
SUMMARY OF PROVISIONS:
Section 1 amends the General Business Law to provide that no consumer
reporting agency shall report or maintain in the file on a consumer,
information on a consumer's late payment of cashless tolls.
Section 2 amends the Banking Law to provide that no banking institution
can use a consumer's late payment of cashless tolls as a factor to
determine creditworthiness, standing or capacity.
Section 3 indicates that the act shall take effect immediately.
JUSTIFICATION:
Cashless Tolling-which exists on all MTA Bridges and Tunnels is merito-
rious to the extent it is designed to ease traffic flow and make Payment
of tolls more convenient for motorists; however, implementation of the
program has revealed a number of challenges that require remediation.
Many residents in New York City and across the State are receiving exor-
bitant bills from the MTA for toll charges that are defined as overdue
and carry $100 fees per original charge. After less than 3 months past
due, residents are receiving fines as high as $100.00 for a toll as
small as $8.50. It is not uncommon for drivers to receive bills for a
handful of trips that have now multiplied into thousands of dollars in
fiduciary obligations. While it is important that the MTA discourage
late payment of toll obligations, and collect toll revenue to keep the
system operating efficiently, the current system features fees that are
extraordinarily excessive, a fee waiver policy that is unavailable for
the public to understand and other features that are simply not pro-con-
sumer.
After only a few months, the fees and fines associated with cashless
tolling, which many people may not even be aware they are accruing and
which they may be accruing in error, are reported to credit reporting
agencies and then used as a factor in determining the creditworthiness,
standing and/or capacity of individuals. The flaws of the cashless toll-
ing system should not be allowed to negatively impact on the financial
standing of New Yorkers.
LEGISLATIVE HISTORY:
A.9898/S.3444 of 2021-22;
A.1480A/S.1109A of 2023-24
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This law will take effect immediately.
