NY A01478

Amends New York banking law to require banks offering overdraft protection or similar fee-based services to notify customers when the service is used to prevent insufficient fund penalties.

Banks must immediately notify customers of insufficient funds via electronic mail or another notification method of the customer's choice.

Notifications must state that the bank's overdraft service has been activated and must list all associated fees and penalties.

Applies to banking institutions under Article 2 (traditional banks) and Article 6 (banking organizations) of New York banking law.

Takes effect immediately upon enactment.