FI showroom red and grey logo
MenuMENU
SearchSEARCH

Gov. Cuomo to Credit Reporting Agencies: Protect Sandy Victims

New York Gov. Andrew Cuomo is demanding that credit bureaus give special allowances for Hurricane Sandy victims. The credit reporting agencies, however, say they are already doing their part.

by Staff
May 2, 2013
3 min to read


ALBANY, N.Y. — New York Governor Andrew Cuomo called on credit reporting agencies last week to not allow credit scores for Hurricane Sandy victims to suffer, but a trade group representing the agencies said it’s up to finance sources to make allowances for consumers affected by last October’s superstorm.

At the direction of the governor, Superintendent of Financial Services Benjamin M. Lawsky sent letters to FICO, Equifax, Experian, TransUnion and the Consumer Data Industry Association (CDIA), requesting that they ensure that credit scores for Hurricane Sandy victims not be ruined by the natural disaster because it was out of their control.

Ad Loading...

“We request that your organization ensure that no Sandy victim's credit is unfairly damaged due to circumstances beyond their control,” the letter states, in part. “We are also asking that you reset any scores that have already been improperly lowered. We are also going to work with the banks and other financial institutions to ensure they are doing their part to avoid these unfair results.”

Equifax and the CDIA responded, saying that they have no control over what happens to credit scores. They added that any special allowances for disaster victims are in the hands of individual lenders and score developers such as FICO or VantageScore.

However, the CDIA reportedly sent three separate advisories to its group of 8,000 credit card issuers, lenders, members of the American Bankers Association and other entities furnishing data to nationwide credit bureaus — one issued the day after Hurricane Sandy hit, another in January, and the latest one issued last week upon the request from Lawsky.

According to Equifax Spokesperson Tim Klein, the notices focused on two actions, one of which draws on a practice that has been in place since 2005, when credit bureaus reacted to Hurricane Katrina. The bureaus adopted a special disaster code at the time “to specifically deal with natural disasters and their impact on an individual’s credit history so that subsequent recipients of a credit report can take this into account when making a decision about a loan, apartment rental or other transaction.”

The advisories from the CDIA also addressed situations where finance sources place a customer’s loan into forbearance. According to Klein, if the lender reports that to the credit bureau, the loan should remain current so that consumers’ credit scores are not adversely impacted.

Ad Loading...

“The CDIA’s members were proactive in their outreach to ensure that lenders understood their data reporting options,” Klein stated in the e-mail. “The CDIA is the owner and administrator of the ‘Metro 2’ data reporting system, which is used by all data furnishers to report data to the credit bureaus. This format enables lenders to provide data in a uniform and consistent manner.”

Norm Magnuson, a spokesperson with the CDIA, iterated that the organization does not personally develop consumers’ scores, but it does have access to the financial institutions that make the decisions on consumers’ credit scores. “We’ve engaged with the governor’s office about what we’ve done and what we continue to do,” he said. “We’re going to help in any way we can.”

FICO also agreed to meet with N.Y. state officials. “FICO deeply sympathizes with the victims of Hurricane Sandy. We would be happy to discuss with State Superintendent Lawsky, lenders and consumer reporting agencies how best to address the continuing financial challenges faced by victims of that disaster,” FICO spokesperson Anthony A. Sprauve wrote in an e-mail to F&I and Showroom.

Governor Cuomo’s office did not respond to the status of any resolution. Representatives from Experian and TransUnion were unavailable for comment.

—    Stephanie Forshee

More F&I

Laptop computer, tablet, calculator and notebook on a desk
F&Iby John TabarAugust 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
Leading with Purpose thumbnail. Trent white pictured in front of titled graphic.
F&IAugust 5, 2026

Leading with Purpose

In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.

Read More →
Ad Loading...
Photo of a keyring with mltiple keys, including a car key fob, on a white surface
F&IJuly 15, 2026

Integrating Nontraditional F&I Products

The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.

Read More →
Photo of businessman's hands holding eyeglasses at a desk
F&Iby Rick McCormickJuly 7, 2026

Trust Is Personal

Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.

Read More →
Photo of executive in a sports coat and glasses
Industryby StaffJuly 2, 2026

Amplify 2026 Billed as Turning Innovation Into Results

Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.

Read More →
Ad Loading...
Woman standing on stage smiling.
F&Iby Lauren LawrenceJuly 1, 2026

Own Your Outcome: F&I in the Digital Customer Journey

Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Ad Loading...
Under the hood of a Toyota Prius EV Hybrid car.
F&Iby StaffJune 15, 2026

New Lifetime Battery F&I Product Meant to Drive Dealer Traffic

EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.

Read More →