NY A09596

Establishes the Consumer Overdraft Protection Act within New York banking law to require clear disclosure of overdraft fees and protections to consumers before fees are incurred.

Prohibits overdraft protection fees unless consumers provide written consent and receive clear written disclosure of the fee amount, which transactions are covered, repayment terms, and circumstances where the institution will not pay overdrafts.

Caps annual overdraft fees at $100 including all additional charges and requires institutions to establish an automatic bounce system once this limit is reached, with a permitted $1 monthly maintenance fee for the bounce system.

Prohibits misleading advertising claims about overdraft protection, including describing accounts as "free" if they include overdraft fees, promoting accounts as short-term credit solutions, or claiming the institution will honor all checks if it retains discretion not to do so.

Exempts certain fees from overdraft protections: incidental accommodations limited to three fees per calendar year, extension of credit through formal overdraft line programs, and transfers from other deposit accounts.