BILL NUMBER: S2623A
SPONSOR: PARKER
 
TITLE OF BILL:
An act to direct the department of state and the public service commis-
sion to jointly study and report upon the provision to consumer credit
reporting agencies by public utility companies, cable television compa-
nies and cellular telephone service suppliers of information on late
payments of or default on any fees or charges incurred by consumers; and
providing for the repeal of such provisions upon expiration thereof
 
PURPOSE OR GENERAL IDEA OF BILL::
The purpose of this bill is to require the Department of State and
Public Service Commission to study and make recommendations regarding
the practice of utility, cable, and telephone service providers report-
ing customer payment information to consumer reporting agencies.
 
SUMMARY OF SPECIFIC PROVISIONS::
This bill would require the Department of State and Public Service
Commission to study the prevalence of utility, cable, and telephone
service providers reporting customer payment information to consumer
reporting agencies. The Department and Commission would be tasked with
making recommendations on the regulatory and statutory provisions neces-
sary to protect consumers in this area and issuing a report to the
Governor and Legislature by December 31, 2025.
 
JUSTIFICATION::
Delinquent utility bills can hurt customer credit ratings if they are
reported to a credit bureau. Reporting a late payment of a utility bill
can be as harmful as any other late payment of a mortgage or credit card
bill. The credit scores are calculated in different ways, depending on
the credit bureau, however, it is common among all of them that a late
payment flags the customer as a high-risk. A customer who pays a late
fee once does not necessarily qualify for a high risk rating or being
under the universal default status.
This bill would provide the Legislature with the information necessary
to determine whether the State should regulate the reporting of customer
payment information by utilities and other service providers in order to
protect consumers from suffering damaged credit scores. Some companies
do not report to the credit bureaus customers that have been paying
their bills on a timely manner, which would help them improve their
credit score. However, the same companies have been reporting customers
that paid their bills late and have been charged,a late fee. This makes
customers pay extra for their service, while their credit score is nega-
tively affected. Under this bill, the Department of State and Public
Service Commission would examine this practice and report on any regula-
tory or legislative recommendations necessary to protect consumers in
this area.
 
PRIOR LEGISLATIVE HISTORY::
2020/21 S2933A - Passed Senate
2019/20 S2355 REFERRED TO ENERGY AND TELECOMMUNICATIONS
2017/18 S5309 - Referred to Energy and Telecommunications
2015-16: S.7784 - Referred to Energy and Telecommunications
2013-14: A.2338 Similar Bill:
2009-2010: A.7817 - Referred to Consumer Affairs and Protection
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS::
To be determined.
 
EFFECTIVE GATE:
This act shall take effect immediately and shall expire and be deemed
repealed January 1, 2026.