The New York State Department of Financial Services (DFS) today announced it reached an agreement with all New York State-regulated consumer credit reporting agencies to support New York consumers impacted by the COVID-19 pandemic. This follows Governor Cuomo’s announcement. The agreement will help New York consumers facing hardship caused by COVID-19 to avoid unjustified negative impacts on consumers’ credit reports, which may adversely impact their credit scores. DFS also urges New York State-regulated financial institutions to furnish credit information in ways that minimizes negative impacts on consumers.

“Many New Yorkers continue to feel financially squeezed due to COVID-19 and it is critical for government and industry to continue to be proactive, agile and work together,” said Superintendent Linda A. Lacewell. “DFS appreciates the collaboration and coordination from the credit reporting industry and our regulated entities.”

Under the agreement, credit reporting agencies will provide all New York consumers with at least one free credit report per month through November 2020. New Yorkers should contact credit reporting agencies to obtain those free credit reports and immediately notify credit reporting agencies of any inaccurate information or fraudulent activity.

New York State-regulated Credit reporting agencies will also:

• When a consumer disputes the completeness or accuracy of information in a credit report, promptly investigate and correct inaccurate information;
• Inform financial institutions of procedures that allow institutions to report missed or delinquent payments in ways that minimize the impact on consumers’ credit histories and credit scores;
• Apprise financial institutions of their credit reporting obligations under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides relief for consumers; and
• Communicate with financial institutions about credit reporting that may not comply with the requirements of the CARES Act.

In addition, DFS issued guidance to New York State-regulated financial intuitions urging them to:

• Use procedures established by credit reporting agencies that allow institutions to report missed or delinquent payments in ways that minimize the impact on consumers’ credit histories and credit scores;
• Ensure compliance with their credit reporting obligations under the CARES Act;
• Review credit reporting during the COVID-19 pandemic to verify that it has complied with the CARES Act; and
• When a consumer disputes the completeness or accuracy of information in a credit report, promptly investigate and correct inaccurate information;

DFS believes that reasonable and prudent efforts by New York State-regulated financial institutions to recognize the unique challenges facing consumers under these unusual and extreme circumstances are consistent with safe and sound practices as well as in the public interest.

In addition, DFS believes that the accuracy and integrity of predictive consumer data will be enhanced by avoiding unfair derogatory marks on the credit profiles of consumers experiencing financial hardship as a result of the COVID-19 pandemic.

• Read a copy of the guidance to the credit reporting industry on the DFS website.
• Read a copy of the guidance letter to New York State-regulated banks and lenders on the DFS website.

For additional DFS regulatory actions on the COVID-19 Pandemic, visit the DFS website.