Summary of Bill S 2198

Bill Overview

• Bill Number: S 2198
• Title: Prohibits consumer reporting agencies and lenders from using an individual's late payment of cashless tolls to determine their credit worthiness
• Status: Referred to Consumer Protection
• Introduced On: January 15, 2025
• Classification: Bill

Purpose and Intent

The primary purpose of Bill S 2198 is to protect consumers from negative impacts on their credit scores due to late payments of cashless tolls. The bill aims to ensure that such payments, which are often small and infrequent, do not unfairly affect an individual's creditworthiness and access to credit.

Key Provisions

• Prohibition on Reporting: The bill explicitly prohibits consumer reporting agencies and lenders from considering late payments related to cashless tolls when assessing an individual's creditworthiness.
• Consumer Protection: By limiting the factors that can negatively impact credit scores, the bill seeks to enhance consumer protection and promote fair lending practices.

Impact

• Affected Parties:
  • Consumers: Individuals who may have incurred late payments on cashless tolls will benefit from this bill, as it prevents these payments from adversely affecting their credit scores.
  • Consumer Reporting Agencies: These agencies will need to adjust their reporting practices to comply with the new regulations set forth by the bill.
  • Lenders: Financial institutions will also need to revise their credit assessment criteria to exclude cashless toll late payments.

Procedural Aspects

• Legislative Action: The bill was introduced on January 15, 2025, and has been referred to the Consumer Protection committee for further consideration.
• Related Legislation: This bill is related to several prior-session bills, including:
  • S 7854
  • S 2778
  • S 3444
  • S 1109
  • A 3055 (companion bill)

Conclusion

Bill S 2198 represents a significant step towards protecting consumers from the potential negative consequences of late cashless toll payments on their credit scores. By prohibiting the use of such payments in credit assessments, the bill aims to foster a more equitable financial environment for consumers. As it moves through the legislative process, stakeholders will be closely monitoring its progress and potential implications for credit reporting practices.