Requires the use of plain language in the description of checking account procedures and processes

4 Co-sponsors

• Ruben Diaz
• Martin Malavé Dilan
• Liz Krueger
• John L. Sampson

Title of bill

An act to amend the banking law, in relation to requiring the use of plain language in the description of checking account procedures and processes

Purpose

This bill requires that banks provide to customers opening checking accounts a disclosure statement in language that is plain, clear and coherently written in common everyday meanings so that the procedures and processes of a checking account are easily comprehended. The disclosure is to include information regarding: the rate of interest, if any, how and when interest is credited, conditions under which that rate of interest is subject to change, minimum balance needed to be maintained to avoid a service charge and/or any check charges, overdraft protection and penalties, check printing fees, any minimum time an account must be maintained before a person can close the account without being charged any fees, any other fees related to the use of these accounts. In addition, these disclosure statements will be made available to the public and displayed for public inspection in every bank. offering checking accounts.

Summary of provisions

Adds a new section 9-v to the banking law.

Justification

This bill would make the procedures and provisions of a checking account easily understandable, by providing an appropriately captioned titled, plain language checking account disclosure statement to bank customers and potential customers.

Legislative history

2005-06: S.3867, Died in Banks 2003-04: A.5170/S.3672, Passed Assembly, Died in Senate Banks 2001-02: A.7694/S.3589, Died in Assembly Banks, Senate Banks 1999-00: A.2874/S.1320, Assembly Third Reading, Senate Banks 1997-98: A.1406/S.2410, Referred to Assembly Banks 1996: A.2873, Passed Assembly, Referred to Senate Banks 1992: A.2536, Passed Assembly, Referred to Senate Rules

Fiscal implications

None.

Effective date

This act shall take effect on the 30th day after it shall have become a law.