2023 New York Laws › EXC - Executive › Article 15 - Human Rights Law › 296-A - Unlawful Discriminatory Practices in Relation to Credit.

§ 296-a. Unlawful  discriminatory practices in relation to credit.  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,  citizenship  or  immigration  status,  sexual
orientation, gender identity or expression, military status,  age,  sex,
marital  status, status as a victim of domestic violence, 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,
citizenship or immigration status, sexual orientation,  gender  identity
or  expression,  military  status, age, sex, marital status, status as a
victim of domestic violence, 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, citizenship or immigration status,  sexual  orientation,  gender
identity  or  expression,  military  status,  age,  sex, marital status,
status as a victim of domestic violence, 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,
citizenship or immigration status, sexual orientation,  gender  identity
or  expression,  military  status, age, sex, marital status, status as a
victim of domestic  violence,  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, citizenship or
immigration status, sexual orientation, gender identity  or  expression,
military  status,  age,  sex,  marital  status,  status  as  a victim of
domestic violence, 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,  citizenship  or  immigration  status,  sexual
orientation,  gender  identity  or  expression,  military  status,  sex,
marital status, status as a victim of domestic violence  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)   for  a  claim  of  sex  discrimination  only,  award  reasonable
attorney's fees attributable to such  claim  to  any  prevailing  party;
provided, however, that a prevailing respondent or defendant in order to
recover  such  reasonable  attorney's fees must make a motion requesting
such fees and show that the action or proceeding brought was  frivolous.
In no case shall attorney's fees be awarded to the department, nor shall
the  department  be liable to a prevailing party for attorney's fees. In
order  to  find  the  action  or  proceeding  to   be   frivolous,   the
superintendent must find in writing one or more of the following:
(a)  the  action or proceeding was commenced, used or continued in bad
faith, solely to delay or prolong the resolution of the litigation or to
harass or maliciously injure another; or
(b) the action or proceeding was commenced or continued in  bad  faith
without  any reasonable basis and could not be supported by a good faith
argument for an extension, modification or reversal of existing law.  If
the  action  or  proceeding  was promptly discontinued when the party or
attorney learned or should have learned that the  action  or  proceeding
lacked such a reasonable basis, the court may find that the party or the
attorney did not act in bad faith.
(4)  require  the  regulated  creditor  to  cease and desist from such
unlawful discriminatory practices;
(5) 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  of
financial  services  to  take  any action requiring consideration by the
superintendent 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 department of financial services 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.