Bill Text: NY S02807 | 2019-2020 | General Assembly | Introduced


Bill Title: Requires banks to send account notifications in certain circumstances.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-01-29 - REFERRED TO BANKS [S02807 Detail]

Download: New_York-2019-S02807-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          2807
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 29, 2019
                                       ___________
        Introduced  by  Sen.  COMRIE -- 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 noti-
          fy customers of account overdrafts in certain circumstances
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The banking law is amended by adding a new section 135 to
     2  read as follows:
     3    § 135. Account notifications. 1. Where  a  banking  institution  under
     4  this article offers its customers or depositors overdraft protection, or
     5  any  other similar service wherein the banking institution charges a fee
     6  to prevent account penalties for insufficient  funds,  such  institution
     7  shall  notify  such  customer  or  depositor  whenever  such  service is
     8  employed to prevent account penalties.
     9    2. A banking institution shall immediately notify a customer or depos-
    10  itor of the insufficiency of  funds  in  such  individual's  account  or
    11  accounts  via electronic mail, or if the individual prefers, through any
    12  other method of notification. Such notification  shall  state  that  the
    13  bank's  overdraft  service  has gone into effect and shall list any fees
    14  and penalties associated with such service.
    15    § 2. The banking law is amended by adding a new section 458 to read as
    16  follows:
    17    § 458. Account notifications. 1. Where  a  banking  institution  under
    18  this article offers its customers or depositors overdraft protection, or
    19  any  other similar service wherein the banking institution charges a fee
    20  to prevent account penalties for insufficient  funds,  such  institution
    21  shall  notify  such  customer  or  depositor  whenever  such  service is
    22  employed to prevent account penalties.
    23    2. A banking institution shall immediately notify a customer or depos-
    24  itor of the insufficiency of  funds  in  such  individual's  account  or
    25  accounts  via electronic mail, or if the individual prefers, through any
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07487-01-9

        S. 2807                             2
     1  other method of notification. Such notification  shall  state  that  the
     2  bank's  overdraft  service  has gone into effect and shall list any fees
     3  and penalties associated with such service.
     4    § 3. This act shall take effect immediately.
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