What's happening
This bill prohibits banks in New York from charging check-cashing fees to non-account holders for checks drawn on their accounts.
Why it matters
Reduces financial barriers for unbanked individuals. By prohibiting banks from charging check-cashing fees to non-account holders, the bill makes it easier for people without bank accounts—often low-income or marginalized individuals—to access their funds without incurring extra costs.
Promotes fairness and prevents double-charging. The bill ensures that non-account holders are not penalized for receiving checks drawn on a bank, while still allowing banks to charge their own account holders for check-cashing if they choose, preventing double-dipping on fees.
Maintains fraud prevention safeguards. Banks are still allowed to require sufficient identification (such as a driver’s license, non-driver’s ID, or passport) from anyone seeking to cash a check, helping to prevent fraud while improving access.
Clarifies exceptions and limitations. The bill does not require banks to cash checks if the account lacks sufficient funds and does not restrict banks from charging their own customers, striking a balance between consumer protection and bank risk management.
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Who cares
Banking organizations
The bill would bar them from charging payees to cash checks or drafts drawn on their own accounts, while preserving the ability to charge account holders service charges.
Check payees without an account at the issuing bank
They could cash checks drawn on that bank without a fee, though the bill would not require cashing a check backed by insufficient funds.
Payees presenting identification
A valid, up-to-date driver's license, non-driver identification card or United States passport would qualify as sufficient identification when cashing a check or draft.
Headline styles
Ban Bank Check Cashing Fees
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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.
Ban Bank Check Cashing Fees
In Senate Committee · Banks · Sponsor Daphne Jordan
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1391
2019-2020 Regular Sessions
IN ASSEMBLY
January 15, 2019
Introduced by M. of A. HUNTER -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to prohibiting certain check cashing fees
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 9-h of the banking law, as added by chapter 90 of the laws of 1985, is amended to read as follows:
§ 9-h. Imposition of service charges prohibited. 1. No banking organization shall impose any service charge with respect to any deposit account as a result of the loss of a check or money which is properly deposited with the banking organization by delivery to an employee of the banking organization for credit to the deposit account and for which a written receipt is issued by the employee.
2. No banking organization shall impose, or seek to impose, any service charge, or collect any fee, for the cashing of a check or draft drawn on an account at such banking organization, from a person to whom such check or draft is payable, regardless of whether or not such person to whom such check or draft is payable is a customer or account holder of the banking organization upon which such check or draft is drawn. Nothing in this subdivision shall require a banking organization to cash a check or a draft where the account from which such check or draft is payable does not maintain sufficient funds to pay such check or draft. Nothing in this subdivision shall further prohibit any banking organization from charging any account holder any service charge for the cashing of a check or a draft. Nothing in this subdivision shall additionally be deemed to prevent any banking organization from requesting to examine from any person seeking to cash a check or a draft drawn on such banking organization, for sufficient identification necessary to properly identify such person as the person to whom the check or draft is payable. For purposes of this section, a valid and up to date driver's license, non-driver's identification card, or United States passport shall be deemed to constitute sufficient identification.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05105-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.