Prohibits financial institutions from charging a fee in excess of five dollars to a customer based on account inactivity

8 Co-sponsors

• Felix Ortiz
• Joan Christensen
• Richard Gottfried
• Crystal Peoples-Stokes
• Ginny Fields
• Audrey Pheffer
• William Colton
• Janele Hyer-Spencer

3 Multi-sponsors

• Earlene Hooper
• David McDonough
• Frank Skartados

BILL NUMBER:A9353

Title of bill

An act to amend the banking law, in relation to prohib- iting financial institutions from charging a fee in excess of five dollars to a customer based on account inactivity

Purpose or general idea of bill

This bill amends the banking law to prohibit financial institutions from charging customers account inactivity fees in excess of five dollars per year.

Summary of specific provisions

section one amends section 9-v of the banking law to add a provision prohibiting financial institutions, whether headquartered within or outside of the State of New York from charging a fee in excess of five dollars per year to a customer based on account inactivity.

Effects of present law which the bill will alter

This bill amends section 9-v of the banking law to add a provision prohibiting financial institutions, whether headquartered within or outside of the State of New York from charging a fee in excess of five dollars per year to a customer based on account inactivity.

Justification

Under current law financial institutions can charge customers inactivity fees which bear no relation to the costs incurred by financial insti- tutions in maintaining inactive accounts. This bill would prevent finan- cial institutions from unfairly using inactivity fees for profit.

Prior legislative history

A8808 of 2003-2004. A350 of 2005-2006. A1538A of 2007-2008. A3355 of 2009 (Bradley)

Fiscal implications for state and local governments

Unknown.

Effective date

Immediately.