Requires financial institutions to notify a customer thirty days prior to charging a fee based on account inactivity; requires such notice to include a telephone number and the full contact information of a representative of the financial institution responsible for resolving any matter relating to the fee.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9140
SPONSOR: Abinanti
 
TITLE OF BILL:
An act to amend the banking law, in relation to requiring financial
institutions to notify a customer prior to charging a fee based on
account inactivity
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill amends the banking law to require financial institutions to
provide written notice to customers, that includes a telephone number
and full Contact information for a representative of the financial
institution, when notifying customers about charging fees based on
account inactivity.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends the banking law by adding a new section 9-x
to require financial institutions, whether headquartered within or
outside of the State of New York, to provide written notice to customers
of any pending charges based on account inactivity thirty days prior to
charging any such fee. The notice must include a telephone number and
full contact information for a representative of the financial institu-
tion responsible for resolving any matter related to the fee. A notifi-
cation by electronic mail shall satisfy the written notice requirement
of this section.
Section 2 is the effective date.
 
JUSTIFICATION:
When financial institutions provide a customer notice of an inactivity
fee to be charged to the customer's account due to account inactivity,
it is necessary to provide the customer with complete contact informa-
tion to allow a customer to resolve or dispute this fee. This bill would
ensure that customers have adequate contact information in order to
resolve any matter related to this inactivity fee.
 
PRIOR LEGISLATIVE HISTORY:
2019-20: A1935 enacting clause stricken, same as 54188 (.Kennedy) passed
senate; 2017-18: A7740 (Zebrowski)advanced to third reading, same as
S7153 (Kennedy); 2015-16: A3062-A (Robinson) advanced to third reading;
2014: A8692-A (Robinson) advanced to third reading; 2013-14: A2549
(Gabryszak) enacting clause stricken; 2011-12 A2795 (Gabryszak) advanced
to third reading; 2010: A9352 (Gabryszak) referred to banks; 2009: A3134
(Bradley) advanced to third reading; 2007-08: A1433-A (Bradley) passed
assembly; 2005-06: A349 (Bradley) passed assembly; 2003-04: A8809
(Bradley) passed assembly
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become law.
STATE OF NEW YORK
________________________________________________________________________
9140
IN ASSEMBLY
January 23, 2020
___________
Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
tee on Banks
AN ACT to amend the banking law, in relation to requiring financial
institutions to notify a customer prior to charging a fee based on
account inactivity
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 9-x to
2 read as follows:
3 § 9-x. Fees based on inactivity; notification. Notwithstanding any
4 other provision of law or rule or regulation to the contrary, any finan-
5 cial institution subject to the provisions of this chapter, including
6 any bank, trust company, savings bank, savings and loan association,
7 credit union, mortgage broker, mortgage banker, or other investment
8 entity, whether headquartered within or outside the state, which
9 provides an account to a customer shall provide written notice of the
10 pending charges to a customer thirty days prior to charging any fee
11 based on account inactivity. Such notice shall include a telephone
12 number and full contact information for a representative of the finan-
13 cial institution responsible for resolving any matter relating to the
14 fee. A notification by electronic mail shall satisfy the writing
15 requirement for the purposes of this section.
16 § 2. This act shall take effect on the ninetieth day after it shall
17 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01539-01-9