NY A02171

Establishes the Consumer Overdraft Protection Act to require consumers receive written consent and clear disclosure before banks charge overdraft protection fees on transaction accounts.

Caps annual overdraft fees at $100 per year including all related charges, with banks required to establish an automatic bounce system when this limit is reached.

Allows banks to charge a $1 monthly maintenance fee for the automatic bounce system, which must be disclosed to consumers.

Prohibits false advertising claims that accounts are "free" or "no cost" if they include overdraft protection fees, or that banks will honor all checks if they retain discretion not to do so.

Exempts incidental overdraft fees (no more than three per calendar year), fees from formal overdraft line of credit programs, and fees from accounts with disclosed transfers from other deposit accounts.