CT HB05309

Prohibits Connecticut banks and credit unions from charging overdraft fees or penalties if the overdraft results from an error or accidental omission on a Social Security Administration direct deposit tape.

Requires banks and credit unions to immediately freeze accounts upon overdraft occurrence and provide written notice to the account holder within three days of the freeze.

Prevents banks and credit unions from charging fees or penalties for additional overdrafts that would have occurred while an account is frozen.

Prohibits overdraft fees and penalties for any subsequent overdrafts if a bank or credit union fails to implement the required account freeze.

Effective October 1, 2010.