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Sponsors
20 Co-sponsors
History
- Reported referred to codes
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to preauthorized electronic fund transfers
In Assembly Committee · Banks · Sponsor George D. Maziarz
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A10401
Title of bill
An act to amend the banking law, in relation to preau- thorized electronic fund transfers
Purpose Or General Idea Of Bill: To protect consumers from having their bank accounts debited after they have canceled such authorization.
Summary Of Specific Provisions: Amends section 9-s of the banking law by adding subdivision 2, which prohibits the transfer of funds from a consumer account after the consumer has canceled authorization to debit their account, for any account entered into after January 1, 2011.
Justification: increasingly consumers are signing up to have bills paid by having their financial accounts debited. However, a problem has aris- en that after this direct debiting has been canceled consumers are seeing a final payment deducted from their account. Consumers are unaware of this transaction and sometimes do not have enough funds to cover the debit. Sometimes the debit is for a termination fee that the consumer is unaware of and would like to challenge. This legislation does not prevent companies from 'collecting payment, it just states, that when an authorization for direct debiting is canceled, that it is final and future payment will have to be transferred in more conven- tional ways.
Prior Legislative History: S.2378 of 2005/2006; Referred to Banks S.104 of 2007/2008; Referred to Banks
Fiscal Implications: For State Andy Local Governments: None to State.
Effective Date: This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.