Bill Text: NY A01478 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires banks to send account notifications in certain circumstances.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to banks [A01478 Detail]

Download: New_York-2023-A01478-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1478

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 17, 2023
                                       ___________

        Introduced by M. of A. WEPRIN -- read once and referred to the Committee
          on Banks

        AN ACT to amend the banking law, in relation to requiring banks to noti-
          fy customers of account overdrafts in certain circumstances

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The banking law is amended by adding a new section  135  to
     2  read as follows:
     3    §  135.  Account  notifications.  1. Where a banking institution under
     4  this article offers its customers or depositors overdraft protection, or
     5  any other similar service wherein the banking institution charges a  fee
     6  to  prevent  account  penalties for insufficient funds, such institution
     7  shall notify  such  customer  or  depositor  whenever  such  service  is
     8  employed to prevent account penalties.
     9    2. A banking institution shall immediately notify a customer or depos-
    10  itor  of  the  insufficiency  of  funds  in such individual's account or
    11  accounts via electronic mail, or if the individual prefers, through  any
    12  other  method  of  notification.  Such notification shall state that the
    13  bank's overdraft service has gone into effect and shall  list  any  fees
    14  and penalties associated with such service.
    15    § 2. The banking law is amended by adding a new section 458 to read as
    16  follows:
    17    §  458.  Account  notifications.  1. Where a banking institution under
    18  this article offers its customers or depositors overdraft protection, or
    19  any other similar service wherein the banking institution charges a  fee
    20  to  prevent  account  penalties for insufficient funds, such institution
    21  shall notify  such  customer  or  depositor  whenever  such  service  is
    22  employed to prevent account penalties.
    23    2. A banking institution shall immediately notify a customer or depos-
    24  itor  of  the  insufficiency  of  funds  in such individual's account or
    25  accounts via electronic mail, or if the individual prefers, through  any

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01449-01-3
        A. 1478                             2

     1  other  method  of  notification.  Such notification shall state that the
     2  bank's overdraft service has gone into effect and shall  list  any  fees
     3  and penalties associated with such service.
     4    § 3. This act shall take effect immediately.