What's happening
This bill requires financial institutions to notify customers in writing at least 30 days before charging an inactivity fee.
Why it matters
Empowers consumers to avoid unexpected fees. By requiring advance written notice, customers have time to react, keep their accounts active, or close them before being charged, helping them manage their finances more proactively.
Applies broadly to many types of financial institutions. The bill covers not only traditional banks but also credit unions, mortgage brokers, and investment entities, ensuring wide consumer protection regardless of where someone banks.
Mandates clear contact information for dispute resolution. The requirement for notification to include a phone number and full contact details of a responsible representative makes it easier for customers to ask questions or resolve issues about inactivity fees.
Allows for electronic notifications. By permitting email as a valid form of written notice, the bill reflects current communication preferences and ensures customers receive timely information in a convenient format.
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Who cares
Headline styles
Notify Before Inactivity Fees
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Signed chap.268
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.442
- Substituted for A9140
- Referred to codes
- Delivered to assembly
- Passed senateVote 54–7
- Advanced to third reading
- 2nd report cal.
- 1st report cal.178
Show 10 earlier actions
- Referred to banks
- Returned to senate
- Died in assembly
- Referred to banks
- Delivered to assembly
- Passed senateVote 62–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.899
- 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
Assembly Floor Calendar · Sponsor Thomas Abinanti
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4188
2019-2020 Regular Sessions
IN SENATE
March 4, 2019
Introduced by Sen. KENNEDY -- 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 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.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
This bill amends the banking law to require financial institutions to provide notice to customers that includes a telephone number and full contact information to reach a representative of the financial institu- tion regarding any charges tendered to a customer for an y account inac- tivity.
Summary of specific provisions
Section 1 amends section 9-x of the banking law to add a provision requiring financial institutions, whether headquartered within or outside of the State of New York, to provide notice including a tele- phone number and full contact information for a representative of the financial institution responsible for resolving the matter prior to charging a fee to a customer based on account inactivity.
Justification
When financial institutions provide customers notice of inactivity fees to be charged to customer's accounts it is necessary to provi de the customer with contact information adequate to enable a customer to resolve any inaccuracies contained within such notices. Thi s bill would ensure that customers have adequate contact information.
Prior legislative history
A3134 of 2008-2009. A9352 of 2009-2010. A2549 of 2013-2014 (enacting clause stricken) A8692 of 2014-15, A3062A of 2016- 17 A.7740 of 2017-18
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.