NY A03428

Requires banks to obtain specific written consent from consumers before enrolling them in overdraft protection programs that charge fees

Caps total overdraft fees at $100 per year per consumer account, including all additional charges and fees

Mandates banks establish an "automatic bounce system" to reject transactions once the $100 annual overdraft fee limit is reached

Prohibits banks from advertising accounts as "free" or "no cost" if they include overdraft protection services with fees, or from marketing overdraft services as short-term credit solutions

Requires clear disclosure of all overdraft fees, repayment terms, covered transaction types, and circumstances when overdrafts will not be paid, with fees included in annual percentage rate calculations

Takes effect 180 days after becoming law