NY State Senate Bill 2017-S4602

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to banks
Feb 21, 2017	referred to banks

2017-S4602 (ACTIVE) - Details

See Assembly Version of this Bill:: A5413
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §§135 & 458, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A9250
2013-2014: A785
2015-2016: S7741, A3224
2019-2020: S2807, A4023
2021-2022: S5815, A8914
2023-2024: S2769, A1478

2017-S4602 (ACTIVE) - Summary

Requires banks to send account notifications in certain circumstances.

2017-S4602 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4602

 TITLE OF BILL :  An act to amend the banking law, in relation to
requiring banks to notify customers of account overdrafts in certain
circumstances

 PURPOSE :

This bill will require banks, to notify their customers with accounts
featuring overdraft protection when such protection is exercised.
This notification will also list any fees and penalties associated
with this service. This will enable the customer to take action as
soon as possible to avoid fees, penalties, and interest on an
overdrawn account.

 SUMMARY OF PROVISIONS :

Section 1: The banking law is amended by adding a new section 135.
Paragraph one states that banks which offer overdraft protection or
similar service that the banks must notify customers when their
overdraft protection has been employed. Paragraph two establishes that
this contact shall be made via email or the customers preferred method
of notification, and shall include a list of penalties or fees
associated with this service.

Section 2: The banking law is amended by adding a new section 458:

This section is identical to section one.

Section 3: This act shall take effect immediately.

 JUSTIFICATION :

This bill will simply ensure that banking customers are alerted when
their accounts are overdrawn if they have signed up for overdraft
protection or a similar service. This would allow them to act to fix
the situation. Simply put, while it is a customer's responsibility to
monitor their account, if for some reason the account does become
overdrawn for some reason, the bank may charge days of fees and
penalties before the customer happens to check their balance, and even
then, they would not readily know what the amount of the fees and
penalties being levied will amount to. By requiring customers be
notified when their overdraft protection has been activated, it
creates a situation where customers are better able to manage their
finances.

 LEGISLATIVE HISTORY :

2015-16: S.7741/A.3224: Referred to Banks

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S4602 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4602
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 21, 2017
                                ___________
 
 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:
 
   Section  1.  The banking law is amended by adding a new section 135 to
 read as follows:
   § 135. ACCOUNT NOTIFICATIONS. 1. WHERE  A  BANKING  INSTITUTION  UNDER
 THIS ARTICLE OFFERS ITS CUSTOMERS OR DEPOSITORS OVERDRAFT PROTECTION, OR
 ANY  OTHER SIMILAR SERVICE WHEREIN THE BANKING INSTITUTION CHARGES A FEE
 TO PREVENT ACCOUNT PENALTIES FOR INSUFFICIENT  FUNDS,  SUCH  INSTITUTION
 SHALL  NOTIFY  SUCH  CUSTOMER  OR  DEPOSITOR  WHENEVER  SUCH  SERVICE IS
 EMPLOYED TO PREVENT ACCOUNT PENALTIES.
   2. A BANKING INSTITUTION SHALL IMMEDIATELY NOTIFY A CUSTOMER OR DEPOS-
 ITOR OF THE INSUFFICIENCY OF  FUNDS  IN  SUCH  INDIVIDUAL'S  ACCOUNT  OR
 ACCOUNTS  VIA ELECTRONIC MAIL, OR IF THE INDIVIDUAL PREFERS, THROUGH ANY
 OTHER METHOD OF NOTIFICATION. SUCH NOTIFICATION  SHALL  STATE  THAT  THE
 BANK'S  OVERDRAFT  SERVICE  HAS GONE INTO EFFECT AND SHALL LIST ANY FEES
 AND PENALTIES ASSOCIATED WITH SUCH SERVICE.
   § 2. The banking law is amended by adding a new section 458 to read as
 follows:
   § 458. ACCOUNT NOTIFICATIONS. 1. WHERE  A  BANKING  INSTITUTION  UNDER
 THIS ARTICLE OFFERS ITS CUSTOMERS OR DEPOSITORS OVERDRAFT PROTECTION, OR
 ANY  OTHER SIMILAR SERVICE WHEREIN THE BANKING INSTITUTION CHARGES A FEE
 TO PREVENT ACCOUNT PENALTIES FOR INSUFFICIENT  FUNDS,  SUCH  INSTITUTION
 SHALL  NOTIFY  SUCH  CUSTOMER  OR  DEPOSITOR  WHENEVER  SUCH  SERVICE IS
 EMPLOYED TO PREVENT ACCOUNT PENALTIES.
   2. A BANKING INSTITUTION SHALL IMMEDIATELY NOTIFY A CUSTOMER OR DEPOS-
 ITOR OF THE INSUFFICIENCY OF  FUNDS  IN  SUCH  INDIVIDUAL'S  ACCOUNT  OR
 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.

                                                            LBD00343-01-7

 S. 4602                             2
 
 OTHER METHOD OF NOTIFICATION. SUCH NOTIFICATION  SHALL  STATE  THAT  THE
 BANK'S  OVERDRAFT  SERVICE  HAS GONE INTO EFFECT AND SHALL LIST ANY FEES
 AND PENALTIES ASSOCIATED WITH SUCH SERVICE.
   § 3. This act shall take effect immediately.

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Senate Bill S4602

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

2017-S4602 (ACTIVE) - Details

2017-S4602 (ACTIVE) - Summary

2017-S4602 (ACTIVE) - Sponsor Memo

2017-S4602 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4602

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Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Banks Committee

2017-S4602 (ACTIVE) - Details

2017-S4602 (ACTIVE) - Summary

2017-S4602 (ACTIVE) - Sponsor Memo

2017-S4602 (ACTIVE) - Bill Text download pdf

Comments