NY A06281

Banking organizations are prohibited from imposing service charges or fees for cashing checks or drafts drawn on accounts at that organization, regardless of whether the person cashing the check is a customer of the bank.

The prohibition does not require banks to cash checks when the account lacks sufficient funds to cover the check amount.

Banks may continue to charge account holders service charges for cashing checks and may request valid identification (driver's license, non-driver's identification card, or U.S. passport) from check cashers.

Existing prohibition on service charges for lost checks or money properly deposited with a banking organization is preserved.

The act takes effect immediately upon enactment.