Section 296-A. Unlawful discriminatory practices in relation to credit  


Latest version.
  • 1.
      It shall be an unlawful discriminatory practice for any creditor or  any
      officer, agent or employee thereof:
        a.  In  the  case  of  applications  for  credit  with  respect to the
      purchase,   acquisition,   construction,   rehabilitation,   repair   or
      maintenance  of  any  housing accommodation, land or commercial space to
      discriminate against any such applicant  because  of  the  race,  creed,
      color,  national  origin, sexual orientation, military status, age, sex,
      marital status, disability, or familial  status  of  such  applicant  or
      applicants  or any member, stockholder, director, officer or employee of
      such applicant or applicants, or of the prospective occupants or tenants
      of  such  housing  accommodation,  land  or  commercial  space,  in  the
      granting,  withholding,  extending  or renewing, or in the fixing of the
      rates, terms or conditions of, any such credit;
        b.  To  discriminate  in  the  granting,  withholding,  extending   or
      renewing,  or  in  the  fixing of the rates, terms or conditions of, any
      form of credit, on the basis of race,  creed,  color,  national  origin,
      sexual   orientation,   military   status,  age,  sex,  marital  status,
      disability, or familial status;
        c. To use any form of application for credit or use or make any record
      or inquiry which expresses,  directly  or  indirectly,  any  limitation,
      specification,  or  discrimination  as  to  race, creed, color, national
      origin, sexual orientation, military status, age, sex,  marital  status,
      disability, or familial status;
        d.  To make any inquiry of an applicant concerning his or her capacity
      to reproduce, or his or her use or advocacy of any form of birth control
      or family planning;
        e. To refuse to consider  sources  of  an  applicant's  income  or  to
      subject  an  applicant's  income  to  discounting,  in whole or in part,
      because of an applicant's race, creed, color,  national  origin,  sexual
      orientation,  military  status,  age,  sex, marital status, childbearing
      potential, disability, or familial status;
        f. To discriminate  against  a  married  person  because  such  person
      neither uses nor is known by the surname of his or her spouse.
        This  paragraph  shall  not  apply to any situation where the use of a
      surname would constitute or result in a criminal act.
        2. Without limiting the generality of subdivision one of this section,
      it shall be considered discriminatory if, because of an  applicant's  or
      class  of  applicants'  race,  creed,  color,  national  origin,  sexual
      orientation, military status, age, sex, marital status or disability, or
      familial status, (i) an applicant  or  class  of  applicants  is  denied
      credit  in  circumstances  where other applicants of like overall credit
      worthiness  are  granted  credit,  or  (ii)  special   requirements   or
      conditions,   such   as  requiring  co-obligors  or  reapplication  upon
      marriage, are imposed upon  an  applicant  or  class  of  applicants  in
      circumstances  where  similar requirements or conditions are not imposed
      upon other applicants of like overall credit worthiness.
        3.   It   shall   not   be   considered   discriminatory   if   credit
      differentiations  or  decisions  are  based  upon factually supportable,
      objective differences in applicants' overall  credit  worthiness,  which
      may  include  reference  to  such  factors as current income, assets and
      prior credit history of such applicants, as well  as  reference  to  any
      other  relevant  factually  supportable data; provided, however, that no
      creditor shall consider, in  evaluating  the  credit  worthiness  of  an
      applicant,  aggregate statistics or assumptions relating to race, creed,
      color,  national  origin,  sexual  orientation,  military  status,  sex,
      marital  status  or  disability,  or  to  the likelihood of any group of
    
      persons bearing or  rearing  children,  or  for  that  reason  receiving
      diminished or interrupted income in the future.
        3-a.  It  shall not be an unlawful discriminatory practice to consider
      age in determining credit worthiness when age  has  a  demonstrable  and
      statistically   sound   relationship   to   a  determination  of  credit
      worthiness.
        4. a. If so requested by an applicant for  credit,  a  creditor  shall
      furnish  such  applicant  with  a  statement of the specific reasons for
      rejection of the applicant's application for credit.
        b. If so requested in writing by an individual who is or was  married,
      a  creditor  or  credit reporting bureau shall maintain in its records a
      separate credit history for any such individual. Such  separate  history
      shall  include  all  obligations as to which such bureau has notice with
      respect to which any such person  is  or  was  individually  or  jointly
      liable.
        5.  No  provision  of  this  section  providing  spouses  the right to
      separately apply for credit,  borrow  money,  or  have  separate  credit
      histories  maintained  shall  limit or foreclose the right of creditors,
      under any other provision of law, to hold one spouse legally liable  for
      debts incurred by the other.
        6.  Any  person claiming to be aggrieved by an unlawful discriminatory
      practice engaged in by a regulated creditor, in lieu  of  the  procedure
      set  forth in section two hundred ninety-seven of this article, may file
      a verified complaint with the superintendent, as  provided  hereinafter;
      provided,  however,  that  the  filing  of  a  complaint with either the
      superintendent or the division shall  bar  subsequent  recourse  to  the
      other  agency,  as well as to any local commission on human rights, with
      respect to the grievance complained of.
        7. In the case of a verified complaint filed with  the  superintendent
      the following procedures shall be followed:
        a.  After  receipt  of  the complaint, the superintendent shall make a
      determination within thirty days of whether there is probable  cause  to
      believe  that  the  person  named  in the complaint has engaged in or is
      engaging in an unlawful discriminatory practice. If  the  superintendent
      determines  there  is  no  such  probable  cause, the complaint shall be
      dismissed. If the superintendent determines that there is such  probable
      cause,  he  or she shall attempt to resolve such complaint by conference
      and conciliation. If  conciliation  is  achieved,  the  terms  shall  be
      recorded  in a written agreement signed by the creditor and complainant,
      a copy of which shall be forwarded to the commissioner.
        b. If conciliation is not achieved, the superintendent or his  or  her
      designated  representative  shall  conduct a hearing with respect to the
      alleged violation of this  section.  All  interested  parties  shall  be
      entitled  to  adequate  and  timely  notice of the hearing. Such parties
      shall  have  the  right  to  be  represented  by  counsel  or  by  other
      representatives  of  their own choosing; to offer evidence and witnesses
      in their own behalf and to cross-examine other parties and witnesses; to
      have the power of subpoena exercised in their behalf; and to have access
      to a written record of such hearing. The superintendent or  his  or  her
      representative  shall  not  be  bound  by  the  strict rules of evidence
      prevailing in courts of law or equity.  The  testimony  taken  shall  be
      under  oath  and  a  record  shall be made of the proceedings. A written
      decision shall be made by the superintendent or his  or  her  designated
      representative separately setting forth findings of fact and conclusions
      of law. A copy of such decision shall be forwarded to the commissioner.
        c.  If  the  superintendent finds that a violation of this section has
      occurred, the superintendent shall issue an order which shall do one  or
      more of the following:
    
        (1)  impose a fine in an amount not to exceed ten thousand dollars for
      each violation, to be paid to the people of the state of New York;
        (2)  award  compensatory  damages  to  the  person  aggrieved  by such
      violation;
        (3) require the regulated creditor  to  cease  and  desist  from  such
      unlawful discriminatory practices;
        (4)  require  the  regulated creditor to take such further affirmative
      action as will effectuate the purposes of this section,  including,  but
      not  limited  to,  granting  the  credit  which  was  the subject of the
      complaint.
        d. Any complainant, respondent or other person aggrieved by any  order
      or  final determination of the superintendent may obtain judicial review
      thereof.
        8. Where the superintendent makes a  determination  that  a  regulated
      creditor  has engaged in or is engaging in discriminatory practices, the
      superintendent is empowered to issue appropriate orders to such creditor
      pursuant to the banking law. Such  orders  may  be  issued  without  the
      necessity of a complaint being filed by an aggrieved person.
        9.  Whenever  any  creditor makes application to the superintendent or
      the banking board to take any  action  requiring  consideration  by  the
      superintendent  or  such  board of the public interest and the needs and
      convenience  thereof,  or  requiring  a  finding  that   the   financial
      responsibility,   experience,   charter,  and  general  fitness  of  the
      applicant,  and  of  the  members  thereof  if  the   applicant   be   a
      co-partnership or association, and of the officers and directors thereof
      if the applicant be a corporation, are such as to command the confidence
      of  the  community  and  to  warrant  belief  that  the business will be
      operated honestly, fairly, and efficiently, such creditor shall  certify
      to the superintendent compliance with the provisions of this section. In
      the  event  that  the  records  of the banking department show that such
      creditor has been found  to  be  in  violation  of  this  section,  such
      creditor  shall  describe what action has been taken with respect to its
      credit policies and procedures to remedy such violation  or  violations.
      The  superintendent  shall,  in approving the foregoing applications and
      making the foregoing findings, give  appropriate  weight  to  compliance
      with this section.
        10.  Any  complaint  filed  with  the  superintendent pursuant to this
      section shall be so filed within one year after the  occurrence  of  the
      alleged unlawful discriminatory practice.
        11.  The  superintendent  is  hereby empowered to promulgate rules and
      regulations hereunder to effectuate the purposes of this section.
        12. The provisions of this section, as they relate to age,  shall  not
      apply to persons under the age of eighteen years.