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NY A05298
Bill
Status
2/15/2011
Primary Sponsor
Darryl Towns
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AI Summary
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Amends New York Banking Law Section 9-s to prohibit preauthorized electronic fund transfer agreements from allowing penalty or final payment transfers after a consumer provides written or oral notice to stop payment, effective January 1, 2012.
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Requires banking institutions (state or federally chartered banks, trust companies, savings banks, savings and loan associations, and credit unions) to provide consumers the right to stop payment on preauthorized transfers from consumer accounts within a specified period.
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Establishes that banking institutions complying with the federal Electronic Funds Transfer Act and its regulations are deemed compliant with New York's preauthorized transfer requirements.
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Removes outdated language that previously deferred entirely to federal compliance standards, instead incorporating federal requirements as a compliance method while adding state-specific protections against penalty transfers.
Legislative Description
Provides that no agreement for preauthorized electronic fund transfers entered into on or after January first, two thousand twelve shall permit or require the transfer of any amount as a penalty or final payment after a stop payment notice has been given.
Last Action
enacting clause stricken
4/20/2011