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.