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History
- Referred to banks
- 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.
Prohibits employer withdrawal from direct deposit account without notice to and permission from account owner
In Assembly Committee · Banks · Sponsor N. Nick Perry
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to certain withdrawals from accounts to which direct deposits have been authorized
Purpose
To prohibit employer withdrawal from direct deposit account without notice to and permission from account owner(s).
Summary of provisions
This bill amends the banking law by adding a new section 8-a to require that no direct deposit agreement shall authorize any withdrawals from the account into which such direct deposits are to be made.
Any language within the agreement that says in any way that withdrawals by anyone other than the account owner(s) shall be void, unenforceable and to no effect. Instead, the language will be understood to mean that any request of withdrawal from anyone other than the account owners, must be accompanied by at least fifteen (15) days written notification by the financial institution, to the account owner(s). Such action would only be permissible when required by law, or upon receipt of the account owner(s) written permission.
Justification
This bill serves as protection to individuals who are participating in a direct deposit service agreement between their employer and their financial institution. The bill will ensure that withdrawals will not be made from an employee's account by employers without the permission of the owner(s) of the account.
If a situation arises in which there is a dispute between parties, no money should be taken from the employee's account without notice given, and the opportunity for due process allowed.
Legislative history
2007: S.1987 2006: S.1175 2001-02: A.2862A 1999-00: A.1026 1997-98: A.6885-C
Fiscal implications
None.
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.