N.Y. General Business Law 380-I – Requirements on users of consumer reports
§ 380-i. Requirements on users of consumer reports. (a) Whenever credit or insurance for personal, family or household purposes is denied, or whenever a residential rental or lease is denied, or the charge for such credit or insurance, or rental or lease is increased, either wholly or partly because of information contained in a consumer report, the user of the report shall:
Terms Used In N.Y. General Business Law 380-I
- consumer: means an individual. See N.Y. General Business Law 380-A
- consumer report: means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or part for the purpose of serving as a factor in establishing the consumer's eligibility for (i) credit or insurance to be used primarily for personal, family, or household purposes, (ii) employment purposes, or (iii) other purposes authorized under section three hundred eighty-b of this article. See N.Y. General Business Law 380-A
- consumer reporting agency: means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports or investigative consumer reports to third parties. See N.Y. General Business Law 380-A
- Equal Credit Opportunity Act: Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program. Source: OCC
- investigative consumer report: means a consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information. See N.Y. General Business Law 380-A
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- person: means any individual, partnership, corporation, trust, estate, co-operative, association, government or governmental subdivision, agency or other entity. See N.Y. General Business Law 380-A
- Statute: A law passed by a legislature.
(1) advise the consumer against whom such adverse action has been taken of such action,
(2) supply the name and address of the consumer reporting agency making the report, and
(3) inform the consumer of his right to inspect and receive a copy of such report by contacting the consumer reporting agency.
(b) In addition to the requirements of subdivision (a) of this section, the user of any such report for purpose of evaluating an application for credit shall furnish to the consumer the reasons for any adverse action in relation to such application in conformance with the requirements of the federal equal credit opportunity act (P.L. 93-435, 15 USC 1691 et seq) as that statute may from time to time be amended.
(c) Every user of a consumer report or an investigative consumer report shall be prohibited from disseminating any such report to any other person unless such other person has a legitimate business need for the information in connection with a business transaction involving the consumer.