Bloomberg Law
Nov. 25, 2019, 6:37 PMUpdated: Nov. 25, 2019, 10:13 PM

Social Networks Can’t Go Into Credit Decisions Under N.Y. Ban (1)

Keshia Clukey
Keshia Clukey

New York state is banning consumer reporting agencies and lenders from using a consumer’s social network to determine their creditworthiness, according to legislation signed by Gov. Andrew M. Cuomo (D).

Companies will be prohibited from using the credit scores of people in an individual’s social network as a variable in determining their credit score, according to the measure (S.2302/A.5294), signed Nov. 25.

The law, effective immediately, comes amid concerns from regulators and lawmakers over the increased use of individual’s social media interaction by lenders and consumer reporting agencies in determining whether they’re suitable to receive financial credit.

“Basing ...

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