Senate Bill S7742

2023-2024 Legislative Session

Relates to overdraft fees charged by banking organizations

download bill text pdf

Sponsored By

Current 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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2023-S7742 (ACTIVE) - Details

See Assembly Version of this Bill:
A8266
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add §§37-b, 135 & 6-q, amd §456, Bank L

2023-S7742 (ACTIVE) - Summary

Requires banks to report to the superintendent annually on the amount of revenue earned from overdraft fees; prohibits banks from imposing overdraft fees during a ten day grace period; regulates the imposition of overdraft and NSF fees.

2023-S7742 (ACTIVE) - Sponsor Memo

2023-S7742 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7742
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             November 13, 2023
                                ___________
 
 Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN  ACT  to amend the banking law, in relation to overdraft fees charged
   by banking organizations
 
   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 37-b to
 read as follows:
   § 37-B. REPORT  ON  OVERDRAFT  FEES.  1.  EVERY  BANKING  ORGANIZATION
 SUBJECT  TO THE EXAMINATION AUTHORITY OF THE SUPERINTENDENT SHALL REPORT
 ANNUALLY, ON OR BEFORE MARCH FIRST, TO THE SUPERINTENDENT ON THE  AMOUNT
 OF  REVENUE  EARNED  FROM  OVERDRAFT  FEES AND NON-SUFFICIENT FUNDS FEES
 COLLECTED IN THE MOST RECENTLY COMPLETED CALENDAR YEAR AND THE  PERCENT-
 AGE  OF  THAT  REVENUE  AS A PROPORTION OF THE NET INCOME OF THE BANKING
 ORGANIZATION. THE SUPERINTENDENT SHALL PUBLISH A REPORT CONTAINING  SUCH
 DATA FOR EACH ORGANIZATION ON THE DEPARTMENT'S INTERNET WEBSITE.
   2.  THE SUPERINTENDENT SHALL PUBLISH THE FIRST REPORT REQUIRED BY THIS
 SECTION ON OR BEFORE  AUGUST  THIRTY-FIRST,  TWO  THOUSAND  TWENTY-FOUR,
 COVERING  DATA  FROM  THE  TWO  THOUSAND TWENTY-THREE CALENDAR YEAR, AND
 ANNUALLY THEREAFTER BY MARCH THIRTY-FIRST OF EACH YEAR.
   3. AS USED IN THIS SECTION:
   (A) "NON-SUFFICIENT FUNDS FEES" MEANS FEES RESULTING FROM  THE  INITI-
 ATION  OF  A  TRANSACTION THAT EXCEEDS THE CUSTOMER'S ACCOUNT BALANCE IF
 THE CUSTOMER'S BANKING ORGANIZATION DECLINES TO MAKE THE PAYMENT.
   (B) "OVERDRAFT FEES" MEANS FEES RESULTING FROM  THE  PROCESSING  OF  A
 DEBIT TRANSACTION THAT EXCEEDS A CUSTOMER'S ACCOUNT BALANCE.
   § 2. The banking law is amended by adding a new section 135 to read as
 follows:
   §  135.  OVERDRAFT  FEES.  1.  NO BANKING ORGANIZATION SHALL IMPOSE AN
 OVERDRAFT FEE OR NON-SUFFICIENT FUNDS FEE PRIOR TO A PERIOD OF TEN  DAYS
 FROM  THE  DATE  OF THE SUBJECT TRANSACTION DURING WHICH TIME PERIOD THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13438-02-3
              

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