BILL NUMBER: S9348

SPONSOR: SANDERS
 
TITLE OF BILL:

An act in relation to directing the superintendent of financial services
to study overdraft fees

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to require the Superintendent of the Depart-
ment of Financial Services to conduct a study of overdraft fees in New
York State.

 
SUMMARY OF PROVISIONS:

Section one provides that the Superintendent of the department of finan-
cial services is directed to prepare a study on overdraft fees in New
York State, including but not limited too:

*the total amount of overdraft fees paid in New York;

              

*geographical distribution of such fees;

*identify any communities that have high rates of overdraft fees and

the possible reason for such high rates;

*the percentage of overdraft fees reduced through direct or indirect
negotiation; and,

*enumeration of consumer rights relating to fee negotiation.

Section two requires that within 12 months of being signed into law, a
report of the findings of the study be delivered to the governor and the
legislature and that the results be posted on the DFS website.

Section three provides that the act shall take effect immediately.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

 
JUSTIFICATION:

Overdraft fees cost Americans $12.4 billion dollars in 2020 and the
average national overdraft fee was $24.38 per transaction. Often the
bank will assess an account holder an overdraft fee instead of declining
the transaction, and while that may be helpful in covering expenses the
result undoubtedly causes further financial strain and hardship espe-
cially to New Yorkers who live paycheck to paycheck.  This legislation
will provide information on the impact overdraft fees are having across
New York.

 
PRIOR LEGISLATIVE HISTORY:

2021 A.7651Reported referred to ways and means

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.
 
EFFECTIVE DATE:
This act shall take effect immediately.