What's happening
This bill requires banks to post clear notices about the availability and terms of basic banking accounts near customer entrances and exits.
Why it matters
Improves consumer awareness and transparency. by mandating banks to clearly display information about basic banking accounts—including terms like minimum balances, initial deposits, maximum fees, and withdrawal limits—at highly visible locations near entrances and exits, making it harder for banks to obscure these lower-cost options.
Helps level the playing field for low-income or unbanked individuals. by making it easier for them to learn about and access more affordable, basic banking services that might otherwise be overlooked or buried among more expensive offerings.
May increase accountability for banks. by standardizing the way information about basic accounts is presented, making it easier for regulators, advocacy groups, and consumers to monitor compliance and ensure fair marketing practices.
Could promote financial inclusion and reduce predatory practices. by ensuring that all customers, regardless of background or financial literacy, have clear access to essential information needed to make informed choices about their banking options.
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Who cares
Banking institutions
They would have to post conspicuous basic-account notices near customer entrances and exits, regardless of whether they post notices about other consumer transaction accounts.
Customers seeking basic banking accounts
Required notices would explain minimum balances, initial deposits, maximum fees and withdrawal limits.
Bank branch managers
They would need to ensure required notices are in place when the bill takes effect 30 days after becoming law.
Headline styles
Banks Must Post Account Info
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to banks
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2457
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sen. HAMILTON -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to requiring banks to post notices of basic banking services available
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 8 of section 14-f of the banking law, as added by chapter 1 of the laws of 1994, is amended to read as follows:
8. [Where a] A banking institution [posts in the public area of its offices notice of the availability of its other consumer transaction accounts, it] shall [also] post [equally] conspicuous notice in [such] public areas [and in the same manner] near customer exits and entrances regarding the availability of its basic banking accounts including information concerning minimum balances, initial deposits, maximum fees chargeable and limitations on withdrawal transactions. Where a banking institution makes available in such public areas material describing the terms of its other consumer transaction accounts, it shall also make comparable descriptive material available in the same such areas and in the same manner for its basic banking account.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00713-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to requiring banks to post notices of basic banking services available
Purpose
To remedy financial institutions' lack of adequate advertising of lifeline basic banking accounts, by requiring banks to post notices of basic banking services.
Summary of specific provisions
This bill amends subdivision 8 of section 14-f of the Banking Law, providing that banks shall post notices near entrances and exits of information regarding their basic banking accounts, including information concerning initial deposits, minimum balances, maximum fees, and withdrawal limitations.
Justification
New York State's basic banking law went into effect in 1994. The law requires financial institutions to offer no frills basic banking services to consumers. The law was designed to make low-cost checking accounts widely available to New Yorkers by having minimal restrictions such as low opening deposits (no more than $25), minimum balances (no more than a penny), and monthly maintenance charges. However, a citywide survey of 83 branches of 30 financial institutions indicates that many branches are denying consumers the opportunity to apply for these basic banking accounts, and fail to provide adequate advertising on these accounts. Further, only 43% of bank branches polled offered information about lifeline basic accounts after being prompted. Additionally, only 40% of bank branches had brochures available for consumers, but not one branch had a sign or poster advertising the availability of lifeline accounts. This bill seeks to address the financial institution industry in New York's failure to advertise these services by amending the Banking Law to require institutions to post information near entrances and exits regarding these banking services.
Prior legislative history
2015-2016: S.6241 2013-2014: A.4336 2011-2012: A.3088
Fiscal implications
None.
Effective date
This act shall take effect on the thirtieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.