Relates to electronic or wire transfers to personal accounts

BILL NUMBER:S2228

Title of bill

An act to amend the banking law, in relation to electronic or wire transfers

Purpose

To protect consumers by requiring banking institutions to provide consumers with a written confirmation of funds received by wire transfer.

Summary of provisions

Section 1 of the bill adds a new section 9-v to the banking law relating to electronic or wire transfers of funds. The new section requires banking institutions to provide consumers with the right to obtain a written confirmation when the bank receives funds by electronic or wire transfer.

Section 2 of the bill is the effective date.

Justification

Increasingly, consumers are using electronic and wire transfers to move money from one account to another or to establish a new account at a bank. These electronic transactions are designed to be quick and convenient for consumers, especially when the banking institution has a limited number of branches located within the state of New York.

However, serious problems can arise with a bank's handling of such transfers. These bank errors can be frustrating and detrimental to consumers - and in some cases they can subject a consumer to penalties. When a bank makes an error in processing a consumer's electronic or wire transfer, a written confirmation of the transaction will provide reliable documentation to the consumer that his funds can be accounted for and are not lost.

Under current law, banking institutions are required to provide local government officials with a written confirmation of an electronic or wire transfer no later than the business day following the day on which the funds were transmitted. New York consumers should receive the same protections when they use electronic or wire transfers.

Prior legislative history

New bill,

Fiscal implications

None

Effective bate

This act shall take effect on the ninetieth day after it shall become a law.