Does New York have its own credit reporting law, and how is it different?

This page explains New York law, the state's Fair Credit Reporting Act in General Business Law (GBL) Article 25, and how it sits next to the federal Fair Credit Reporting Act. KOR Law LLP's consumer protection practice handles claims against credit reporting agencies and furnishers under federal and state statutes. For the federal dispute process itself, start with how to dispute a credit report error and when you can sue under the FCRA; this page focuses on what New York adds.

What does New York's law cover?

Article 25 applies to consumer reporting agencies, meaning anyone who regularly assembles or evaluates credit or other information on consumers to furnish reports to others for a fee or on a cooperative basis (GBL 380-a(e)), and to the people who request and use reports. Its main parts are:

• Who may get a report. Reports may be furnished only for listed purposes, such as a court order, the consumer's written instructions, credit transactions, insurance underwriting, or licensing (GBL 380-b(a)).
• Notice before a report is pulled. An application for credit, employment, insurance or a residential rental must tell the applicant in writing that a report may be requested (GBL 380-b(b)).
• Prohibited information. Some information may never be reported, and other information only for a limited time (GBL 380-j).
• Disputes. A state-law procedure for reinvestigating disputed items (GBL 380-f).
• Users' duties. When credit, insurance or a residential rental is denied or made more expensive because of a report, the user must give the consumer notice (GBL 380-i(a)).
• Security freezes and identity theft. Consumers may freeze their credit files (GBL 380-t), and obtaining credit in another person's name with intent to defraud is prohibited (GBL 380-s).
• Remedies. Private lawsuits for willful and negligent violations (GBL 380-l, 380-m), within two years (GBL 380-n).

What can a New York credit report never include?

GBL 380-j(a) says no consumer reporting agency shall report or maintain information about an arrest or criminal charge unless there was a conviction or the charge is pending; information about race, religion, color, ancestry or ethnic origin; information "relative to a medical debt"; or information the agency has reason to know is inaccurate. Medical debt is defined broadly as any obligation for health care services, products or devices from a licensed hospital, licensed health care professional or certified ambulance service, but not ordinary credit card debt unless the card is specifically for health care (GBL 380-a(v)). Agencies must also maintain reasonable procedures "to assure maximum possible accuracy" (GBL 380-j(e)).

The New York time limits do not apply to credit transactions of $50,000 or more, life insurance of $50,000 or more, or employment at an annual salary of $25,000 or more (GBL 380-j(f)(2)).

How does the New York law fit with the federal FCRA?

The federal statute keeps most state laws in force "except to the extent that those laws are inconsistent," but it bars state requirements on listed subjects (15 U.S.C. 1681t(a), (b)). Among them are the contents of consumer reports under section 1681c and the timing of dispute procedures under 1681i, each with an exception for state laws in effect on September 30, 1996, and the duties of furnishers under 1681s-2 (15 U.S.C. 1681t(b)(1)(B), (E), (F)). Whether a particular New York rule applies to a particular report can therefore depend on what the rule regulates and when it took effect. That is a legal question to resolve before a claim is filed, not an assumption to make.

How does a New York claim work, step by step?

1. Identify the violation. Prohibited information, an obsolete item, an inaccurate item after a dispute, an impermissible pull, or a missing notice.
2. Dispute it. Under GBL 380-f(a), when a consumer disputes an item directly with the agency, it must promptly reinvestigate unless it has reasonable grounds to think the dispute frivolous, and contradictory information in the file is not by itself such a ground.
3. Check the result. If an item is wrong or unverifiable, the agency must expunge it, stop reporting it, and on request notify anyone who received it in the past year (GBL 380-f(b)); if the dispute remains, the consumer may add a statement of up to 100 words (380-f(c)).
4. Get the corrected file. When items are changed, the agency must mail a corrected copy at no charge (GBL 380-f(d)).
5. Sue if needed, within two years. The period runs from when liability arises, or two years from discovery of a material, willful misrepresentation (GBL 380-n).

Can employers use credit history in New York?

Article 25 restricts it. A report furnished for employment purposes generally must exclude information that bears on creditworthiness (GBL 380-b(a)(3)), and GBL 380-b(d) makes it an unlawful discriminatory practice for an employer, labor organization or employment agency to request or use an applicant's or employee's consumer credit history for employment purposes, with exceptions, such as employers required by state or federal law or by a securities self-regulatory organization to use it.

What changes the answer?

• The type of item. Medical debt, arrests without conviction and obsolete items have specific rules (GBL 380-j).
• The size of the transaction. Time limits do not apply at $50,000 or more of credit or insurance, or $25,000 salary (GBL 380-j(f)(2)).
• Federal preemption. Some subjects are reserved to federal law (15 U.S.C. 1681t(b)).
• Willful or negligent. Punitive damages require a knowing and willful violation (GBL 380-l); negligence brings actual damages and fees (380-m).
• Timing. New York's two-year period differs from the federal discovery rule (GBL 380-n; 15 U.S.C. 1681p).
• Who did it. Agencies, users and, for identity theft, the person who supplied false information can each be liable (GBL 380-l).
• A mortgage account. When the error starts with a mortgage servicer, federal servicing rules add a separate correction process; see how to make a mortgage servicer fix an error.

For example: an ambulance bill on a credit report

Common mistakes

• Citing only federal law. New York may bar items the FCRA allows, such as medical debt (GBL 380-j(a)(3)).
• Assuming every state rule applies. Preemption can limit some (15 U.S.C. 1681t(b)).
• Missing the two-year state deadline. It runs from when liability arises (GBL 380-n).
• Ignoring paid collection accounts. New York shortens their reporting to five years once paid (GBL 380-j(f)(1)(iv)).
• Not asking for the corrected file. It is free and documents the change (GBL 380-f(d)).
• Overlooking an employer's use of credit history. It may be unlawful (GBL 380-b(d)).

What to do this week

1. Pull your reports and flag medical debts, arrests, and items older than the New York limits.
2. Note the dates each item was reported, paid or satisfied.
3. Send written disputes citing both GBL 380-j and the FCRA.
4. Consider a security freeze if identity theft is involved (GBL 380-t).
5. Keep every adverse action notice from lenders, landlords or insurers (GBL 380-i).
6. Calendar both the New York and federal deadlines and speak with counsel.

Frequently asked questions

What can I recover under New York law?

Actual damages, punitive damages and fees for willful and knowing violations, and actual damages and fees for negligent ones (GBL 380-l, 380-m). A side-by-side comparison of state and federal remedies is in what you can recover for a credit reporting or debt collection violation.

Is New York's deadline the same as the federal one?

No. New York allows two years from when liability arises (GBL 380-n); federal law allows the earlier of two years from discovery or five years from the violation (15 U.S.C. 1681p). See how long you have to sue under the FCRA, FDCPA, or TCPA.

Can an old judgment from a debt lawsuit still be reported?

New York limits judgments to seven years or the statute of limitations, and satisfied judgments come off five years after entry (GBL 380-j(f)(1)(ii)). Whether the debt itself could still be sued on is covered in whether you can be sued on an old consumer debt in New York. If the judgment came from a case you were never properly served in, see whether you can undo a default judgment in New York.

Does New York require a free copy of my file?

Article 25 requires agencies to disclose the file on request with proper identification (GBL 380-d), and to mail a corrected copy free after a successful dispute (GBL 380-f(d)).

What if a debt collector put the item on my report?

Collectors that furnish information are subject to the credit reporting rules, and their collection conduct is governed separately. See what a debt collector can legally do in New York.