Tonawanda News — A new state law aims to crackdown on individuals who issue false financial statements.
The law, signed by Gov. Andrew Cuomo this week, will require a court to issue and file a certificate of conviction with the New York State Secretary of State in cases where a defendant is convicted of a crime related to the intentional filing of a financial statement.
State law says a person is guilty of issuing a false financial statement when they knowingly describe the financial condition or ability of a person to pay a debt in an inaccurate manner on a signed, written document.
Supporters of the new law say it will help prevent creditors from filing false information about individuals’ finances that can be potentially harmful to their individual credit scores.
“Everyone knows the importance of a good credit score for everything from buying a house to getting a job,” said state Sen. Mark Grisanti, R-Buffalo, an advocate for the law’s passage. “When someone destroys this by lying, the burden to prove it untrue falls to the victim. This new law will provide some method of proof to show that a financial statement was bogus and help people correct an unjust wrong before too much damage has occurred.”
The new law will now require creditors to give more information to the state about an individual’s financial circumstances leading to the negative credit report, including the name of the debtors and a description of the collateral covered by the claim.