What's happening
This bill requires financial institutions to give customers written notice 30 days before charging inactivity fees on accounts.
Why it matters
Enhances consumer awareness and protection. by mandating clear advance notice before inactivity fees are charged, giving customers a chance to prevent or dispute the fee.
Requires financial institutions to provide full contact details. (including a phone number and representative information) in the notice, making it easier for customers to get assistance or resolve misunderstandings about the fee.
Allows for electronic notification. (such as email) to satisfy the written notice requirement, which could increase convenience for both institutions and customers, and ensure timely delivery of notifications.
Applies to a broad range of financial entities. operating in New York, including those headquartered out-of-state, potentially closing loopholes and ensuring consistent practices across the industry.
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
Notify Before Inactivity Fees
Plain English, a few words. Used as the page title.
Sponsors
9 Co-sponsors
1 Multi-sponsor
History
- Enacting clause stricken
- 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.
Notify Before Inactivity Fees
Signed by Governor · Sponsor Timothy M. Kennedy
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1935
2019-2020 Regular Sessions
IN ASSEMBLY
January 18, 2019
Introduced by M. of A. ZEBROWSKI, ABINANTI, PERRY, BLAKE, RICHARDSON, WEPRIN, SEAWRIGHT, BICHOTTE, FAHY, COLTON -- Multi-Sponsored by -- M. of A. GALEF -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to requiring financial institutions to notify a customer prior to charging a fee 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; notification. Notwithstanding any other provision of law or rule or regulation to the contrary, any 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 provide written notice of the pending charges to a customer thirty days prior to charging any fee based on account inactivity. Such notice shall include a telephone number and full contact information for a representative of the financial institution responsible for resolving any matter relating to the fee. A notification by electronic mail shall satisfy the writing requirement for the purposes of this section.
§ 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.
LBD01539-01-9
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.