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History
- Referred to banks
- Referred to banks
Companion bill
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Establishes a rating system for automated teller machine usage fees
In Assembly Committee · Banks · Sponsor Darryl Towns
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 establishing a rating system for automated teller machine usage fees
Purpose
To establish a rating system to be posted on automated teller machines that will allow consumers to quickly and easily ascertain the cost of a withdrawal according to the lettered designation.
Summary of provisions
Automated teller machine (ATM) operators will be required to post a letter designating the level of a transaction fee being charged for said ATM conspicuously and prominently, thereby augmenting existing provisions that give consumers ample notice of fee impositions prior to their election to go forward with a financial transaction. Notice of fee and the amount of such fee are already required to be provided on the screen of the ATM or on paper issued from the machine before the consumer is irrevocably committed to completing the transaction. The designated letter system will denote a usage fee as follows:
Read the full memo (734 words)
a. "A" designates a usage fee of $1.00 or less; b. "B" designates a usage fee of $1.01 to $2.00; c. "C" designates a usage fee of $2.01 to $3.00; d. "D" designates a usage fee of $3.01 or more;
Existing law
* § 399-y. Automated teller machine fee disclosure. 1. For the purposes of this section, "automated teller machine operator" shall me an any person who: (a) operates an automated teller machine at which consumers may make financial transactions, including but not limited to deposits, withdrawals, balance inquiries, and loan payments; and (b) is not the financial institution which holds the account accessed by the consumer to make the financial transaction. 2. No automated teller machine operator shall impose a fee on a consumer using such machine, unless such operator: (a) provides notice as required by subdivision three of this section; and (b) the consumer elects to continue to effect a financial transaction after receiving such notice. 3. (a) The automated teller machine operator shall post a sign or warning in a prominent and conspicuous location on or at the automated teller machine at which the financial transaction is initiated by the consumer. Such sign shall clearly state: (i) that a fee is imposed for the use of such machine; and (ii) the amount of such fee. (b) The automated teller machine operator shall also provide notice on the screen of the automated teller machine or on a paper issued from such machine after the financial transaction is initiated, but before the consumer is irrevocably committed to completing the transaction. Such notice shall clearly state: (i) that a fee is imposed for the use of such machine; (ii) the amount of such fee; and (iii) that the consumer may cancel such transaction without being assessed a fee. 4. (a) Any automated teller machine operator who fails to comply with the requirements of this section shall be assessed a civil penalty not to exceed two hundred fifty dollars per transaction. (b) If the notice required pursuant to subdivision three of this section has been posted by an automated teller machine operator and such notice is subsequently removed, damaged, or altered by any person other than such operator, the operator shall have no liability for a failure to comply with subdivision three of this section. * NB There are 2 § 399-y's
Justification
To amend existing law by adding an enhanced and clearly defined alphabetical system of fee notification that will inform and alert consumers as to the cost of financial transactions on automated teller machines. Automated teller machine (ATM) operators will be required to post a letter designating the level of transaction fee being charged for said ATM conspicuously and prominently, thereby giving consumers ample notice of fee impositions prior to their election to go forward with a financial transaction. Notice of fee and the amount of such fee are already required to be provided on the screen of the ATM or on paper issued from the machine before the consumer is irrevocably committed to completing the transaction. This amendment expands upon existing provisions by codifying a colored alphabetical system to be prominently displayed on or near ATM machines that will serve as clear notice to consumers of the fee associated with financial transactions on the specific machine.
Legislative history
This is a new bill.
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.