What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- 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.
Requires banks to send account notifications in certain circumstances
In Assembly Committee · Banks · Sponsor David Weprin
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 requiring banks to notify customers of account overdrafts in certain circumstances
Purpose
This bill will require banks, to notify their customers with accounts featuring overdraft protection when such protection is exercised. This notification will also list any fees and penalties associated with this service. This will enable the customer to take action as soon as possible to avoid fees, penalties, and interest on an overdrawn account.
Summary of specific provisions
Section 1:
The banking law is amended by adding a new section 135. Paragraph one states that banks which offer overdraft protection or similar service that the banks must notify customers when their overdraft protection has been employed. Paragraph two establishes that this contact shall be made via email or the customers preferred method of notification, and shall include a list of penalties or fees associated with this service.
Section 2:
The banking law is amended by adding a new section 458: This section is identical to section one.
Section 3:
This act shall take effect immediately.
Justification
This bill will simply ensure that banking customers are alerted when their accounts are overdrawn if they have signed up for overdraft protection or a similar service. This would allow them to act to fix the situation. Simply put, while it is a customer's responsibility to monitor their account, if for some reason the account does become overdrawn for some reason, the bank may charge days of fees and penalties before the customer happens to check their balance, and even then, they would not readily know what the amount of the fees and penalties being levied will amount to. By requiring customers be notified when their overdraft protection has been activated, it creates a situation where customers are better able to manage their finances.
Legislative history
New bill.
Fiscal implication
None to the State.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.