A 1721: Requires banks to send account notifications in certain circumstances.

  
  STATE OF NEW YORK ________________________________________________________________________ 1721 2025-2026 Regular Sessions  IN ASSEMBLY January 14, 2025 ___________ Introduced by M. of A. WEPRIN -- read once and referred to the Committee on Banks AN ACT to amend the banking law, in relation to requiring banks to noti- fy customers of account overdrafts in certain circumstances The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The banking law is amended by adding a new section 135 to 2 read as follows: 3 § 135. Account notifications. 1. Where a banking institution under 4 this article offers its customers or depositors overdraft protection, or 5 any other similar service wherein the banking institution charges a fee 6 to prevent account penalties for insufficient funds, such institution 7 shall notify such customer or depositor whenever such service is 8 employed to prevent account penalties. 9 2. A banking institution shall immediately notify a customer or depos- 10 itor of the insufficiency of funds in such individual's account or 11 accounts via electronic mail, or if the individual prefers, through any 12 other method of notification. Such notification shall state that the 13 bank's overdraft service has gone into effect and shall list any fees 14 and penalties associated with such service. 15 § 2. The banking law is amended by adding a new section 458 to read as 16 follows: 17 § 458. Account notifications. 1. Where a banking institution under 18 this article offers its customers or depositors overdraft protection, or 19 any other similar service wherein the banking institution charges a fee 20 to prevent account penalties for insufficient funds, such institution 21 shall notify such customer or depositor whenever such service is 22 employed to prevent account penalties. 23 2. A banking institution shall immediately notify a customer or depos- 24 itor of the insufficiency of funds in such individual's account or 25 accounts via electronic mail, or if the individual prefers, through any EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03585-01-5 
 A. 1721 2 1 other method of notification. Such notification shall state that the 2 bank's overdraft service has gone into effect and shall list any fees 3 and penalties associated with such service. 4 § 3. This act shall take effect immediately.