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NY A08266
Bill
Status
11/15/2023
Primary Sponsor
John Zaccaro
Click for details
AI Summary
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Requires all banking organizations to annually report to the superintendent by March 1st the revenue earned from overdraft and non-sufficient funds (NSF) fees, including the percentage of net income these fees represent, with data published on the department's website
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Prohibits banks, trust companies, and credit unions from imposing overdraft or NSF fees until 10 days after the transaction date, giving customers time to deposit sufficient funds
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Bans "authorize positive, settle negative" overdraft fees, where a debit card transaction is approved with sufficient funds but later charged an overdraft fee due to an unrelated subsequent transaction
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Limits overdraft protection transfer fees to situations where the transfer actually covers the overdraft; if the transfer is insufficient, only one overdraft fee may be charged with no additional transfer fee
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Prohibits charging multiple NSF fees when a merchant re-presents the same transaction for payment multiple times, requiring banks to update software to prevent this practice
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Takes effect 60 days after becoming law, with the first overdraft fee report due by August 31, 2024 covering calendar year 2023
Legislative Description
Requires banks to report to the superintendent annually on the amount of revenue earned from overdraft fees; prohibits banks from imposing overdraft fees during a ten day grace period; regulates the imposition of overdraft and NSF fees.
Last Action
referred to banks
1/3/2024