What's happening
This bill prohibits financial institutions in New York from charging customers more than five dollars per year for account inactivity.
Why it matters
Directly limits how much banks and other financial institutions can profit from customers who are not actively using their accounts. , which could particularly benefit vulnerable groups like the elderly, low-income individuals, or anyone who keeps an account open for emergency savings or infrequent use.
Applies to a wide range of financial entities. (including banks, credit unions, mortgage brokers, and investment firms), ensuring comprehensive consumer protection regardless of where an account is held or whether the institution is based in or outside New York.
May encourage individuals to maintain bank accounts rather than close them due to fear of high inactivity fees. , potentially promoting financial inclusion and making it easier for people to manage irregular finances or save for the long term without penalty.
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Who cares
Headline styles
Limit Bank Inactivity Fees
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to banks
- 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.
Cap Inactivity Fees at $5
In Assembly Committee · Banks · Sponsor Crystal Peoples-Stokes
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2463
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 prohibiting financial institutions from charging a fee in excess of five dollars to a customer based on account inactivity
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The banking law is amended by adding a new section 9-x to read as follows:
§ 9-x. Fees based on inactivity prohibited. Notwithstanding any other provision of law or rule or regulation to the contrary, no financial institution subject to the provisions of this chapter, including any bank, trust company, savings bank, savings and loan association, credit union, mortgage broker, mortgage banker, or other investment entity, whether headquartered within or outside the state, which provides an account to a customer shall charge a fee in excess of five dollars per year to such customer based on account inactivity.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00721-01-7
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 prohibiting financial institutions from charging a fee in excess of five dollars to a customer based on account inactivity
Purpose or general idea of bill
This bill amends the banking law to prohibit financial institutions from charging customers account inactivity fees in excess of five dollars per year.
Summary of specific provisions
Section 1 amends section 9-v of the banking law to add a prohibiting financial institutions, whether headquartered within or outside of the State of New York from charging a fee in excess of five dollars per year to a customer based on account inactivity.
Justification
Under current law, financial institutions can charge customers inactivity fees which bear no relation to the cost incurred by financial institutions in maintaining inactive accounts. This bill would prevent financial institutions from unfairly using inactivity fees for profit.
Prior legislative history
A.9353 of 2010. A.3359 of 2011-2012. A.2548 of 2013-2014 (enacting clause stricken) A.8691 of 2014 S.6237 of 2015-16 Legislative Session
Fiscal implications
Unknown
Effective date
This act shall take effect on the ninetieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.