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Bill

A 2692

Establishes a working group to create a pilot program for an alternative system to a credit score

2025 Regular Session Introduced by Phara Souffrant Forrest

Bill A 2692 establishes a working group to develop a pilot program for alternative credit assessments, aiming to improve access for underserved individuals.

REFERRED TO BANKS
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Bill Summary · A 2692

Summary of Bill A 2692

Bill Overview

  • Bill Number: A 2692
  • Title: Establishes a working group to create a pilot program for an alternative system to a credit score
  • Status: Referred to Banks
  • Introduced On: January 22, 2025
  • Classification: Bill

Purpose and Intent

The primary aim of Bill A 2692 is to address the limitations and challenges associated with traditional credit scoring systems. The bill proposes the establishment of a working group tasked with developing a pilot program that explores alternative methods for assessing creditworthiness. This initiative seeks to create a more inclusive and equitable financial system, particularly for individuals who may be underserved by conventional credit scoring methods.

Key Provisions

  • Working Group Formation: The bill mandates the creation of a working group composed of stakeholders from various sectors, including finance, consumer advocacy, and technology.
  • Pilot Program Development: The working group will be responsible for designing a pilot program that tests alternative credit assessment methods. This may include the use of non-traditional data sources, such as payment histories for utilities, rent, and other recurring expenses.
  • Evaluation Criteria: The working group will establish criteria for evaluating the effectiveness and reliability of the alternative credit assessment methods developed during the pilot program.
  • Reporting Requirements: The bill requires the working group to submit a report detailing their findings, recommendations, and any proposed legislation to the relevant legislative committees.

Potential Impact

  • Target Population: The bill is expected to benefit individuals with limited credit histories, such as young adults, immigrants, and those with low incomes, who often struggle to obtain credit through traditional means.
  • Financial Institutions: Banks and credit unions may need to adapt their lending practices based on the outcomes of the pilot program, potentially leading to more inclusive lending policies.
  • Consumer Advocacy: The bill aligns with ongoing efforts to reform credit scoring practices, which have been criticized for perpetuating systemic inequalities in access to credit.

Procedural Aspects

  • Legislative Action: As of January 22, 2025, the bill has been referred to the Banks Committee for further consideration. The timeline for subsequent actions, including hearings or votes, will depend on the committee's schedule.

In summary, Bill A 2692 represents a significant step towards rethinking credit assessment in the financial sector, with the potential to create a more equitable system for evaluating creditworthiness.

Compiled from official sources — confirm details with the bill’s official record.

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