Jul 25, 2013 Walt Wojciechowski
State lawmakers in New York are considering banning the practice of selling consumer credit reports that are used in pre-employment screenings.
The Legislative Gazette recently reported that a bill that would have placed limitations on the sale of such records to third parties failed to make it to the Senate floor before the most recent session expired. However, the source noted that it shows New York officials are striving to eliminate the practice. It could mean that a similar bill is likely to be created in the future.
If passed, the proposed legislation would have prevented credit reporting firms from selling data without approval from debtors. Additionally, stipulations in the bill were to allow for $2,000 fines to be levied against violating agencies. Also, consumers could have been able to sue credit reporting firms if they sold private information.
"The sale of employment data reports is a major violation of privacy and most employees are completely unaware that this is taking place," said democratic Assemblyman Edward Braunstein, who sponsored the bill.
Despite not being signed into law, future legislation might be passed that could affect how credit reporting agencies operate in New York.