Regulation Would Give NYDFS Oversight of Credit Reporting Agencies

New York Governor Andrew Cuomo announced last week that he had directed the New York Department of Financial Services (NYDFS) to issue new regulations making credit reporting agencies register with the state of New York and comply with the state’s cybersecurity standards.

"A person's credit history affects virtually every part of their lives and we will not sit idly by while New Yorkers remain unprotected from cyberattacks due to lax security," Governor Cuomo said. "Oversight of credit reporting agencies will help ensure that personal information is less vulnerable to cyberattacks and other nefarious acts in this rapidly changing digital world. The Equifax breach was a wakeup call and with this action New York is raising the bar for consumer protections that we hope will be replicated across the nation." 

Under the proposed regulation, all consumer credit reporting agencies that operate in New York must register annually with DFS beginning on or before February 1, 2018 and by February 1 of each successive year for the calendar year thereafter.  The registration form must include an agency's officers or directors who will be responsible for compliance with the financial services, banking, and insurance laws, and regulations.

In addition, every credit reporting agency must comply with the Department's cybersecurity regulation, on a phased-in schedule of compliance, starting April 4, 2018.