senate Bill S219

Signed by Governor Amended

Relates to preauthorized electronic fund transfers

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO BANKS
  • 09 / Mar / 2011
    • 1ST REPORT CAL.203
  • 10 / Mar / 2011
    • 2ND REPORT CAL.
  • 14 / Mar / 2011
    • ADVANCED TO THIRD READING
  • 12 / Apr / 2011
    • PASSED SENATE
  • 12 / Apr / 2011
    • DELIVERED TO ASSEMBLY
  • 12 / Apr / 2011
    • REFERRED TO BANKS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO BANKS
  • 13 / Jan / 2012
    • AMEND AND RECOMMIT TO BANKS
  • 13 / Jan / 2012
    • PRINT NUMBER 219A
  • 07 / Mar / 2012
    • 1ST REPORT CAL.313
  • 12 / Mar / 2012
    • 2ND REPORT CAL.
  • 13 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 26 / Mar / 2012
    • PASSED SENATE
  • 26 / Mar / 2012
    • DELIVERED TO ASSEMBLY
  • 26 / Mar / 2012
    • REFERRED TO BANKS
  • 18 / Jun / 2012
    • SUBSTITUTED FOR A9787
  • 18 / Jun / 2012
    • ORDERED TO THIRD READING RULES CAL.313
  • 18 / Jun / 2012
    • PASSED ASSEMBLY
  • 18 / Jun / 2012
    • RETURNED TO SENATE
  • 06 / Aug / 2012
    • DELIVERED TO GOVERNOR
  • 17 / Aug / 2012
    • SIGNED CHAP.403

Summary

Provides that no agreement for preauthorized electronic fund transfers entered into on or after January first, two thousand thirteen permit or require the transfer of any amount as a penalty or final payment after a stop payment notice has been given.

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Bill Details

Versions:
S219
S219A
Legislative Cycle:
2011-2012
Law Section:
Banking Law
Laws Affected:
Amd ยง9-s, Bank L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S1055C
2007-2008: S104

Sponsor Memo

BILL NUMBER:S219

TITLE OF BILL: An act to amend the banking law, in relation to
preauthorized electronic fund transfers

PURPOSE: To protect consumers from having their bank accounts debited
after they have canceled such authorization.

SUMMARY OF PROVISIONS: Amends section 9-s of the banking law by
adding subdivision 2 and 3, which prohibits the transfer of funds from
a consumer account after the consumer has canceled authorization to
debit their account, for any account entered into after January 1,
2011.

JUSTIFICATION: Increasingly consumers are signing up to have bills
paid by having their financial accounts debited. However, a problem
has arisen that after this direct debiting has been canceled consumers
are seeing a final payment deducted from their account. Consumers are
unaware of this transaction and sometimes do not have enough funds to
cover the debit. Sometimes the debit is for a termination fee that the
consumer is unaware of and would like to challenge. This legislation
does not prevent companies from collecting payment, it just states,
that when an authorization for direct debiting is canceled, that it is
final and future payment will have to be transferred in more
conventional ways.

LEGISLATIVE HISTORY:
S.2378 of 2005/2006; Referred to Banks
S.104 of 2007/2008; Referred to Banks
S.1055C/A.10401 of 2009/2010; Referred to Banks

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   219

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  MAZIARZ,  BONACIC,  FLANAGAN, FUSCHILLO, JOHNSON,
  RANZENHOFER, SEWARD -- read twice and ordered printed, and when print-
  ed to be committed to the Committee on Banks

AN ACT to amend the banking law, in relation to preauthorized electronic
  fund transfers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 9-s of the banking law, as added by chapter 550 of
the laws of 1998, is amended to read as follows:
  S 9-s. Preauthorized electronic fund  transfers.    1.  Every  banking
institution  which provides preauthorized electronic fund transfers from
consumer accounts shall, in accordance with regulations adopted  by  the
banking  board,  provide  consumers  with  the  right to stop payment by
giving written or oral notice within a specified period of time prior to
such transfer. [Any banking institution which  complies  with  the  stop
payment provisions of the federal Electronic Funds Transfer Act, as such
act may be amended from time to time, and any regulations adopted pursu-
ant  thereto, shall be deemed to be in compliance with the provisions of
this section.] For purposes of this section, "banking institution" shall
mean any state or federally chartered bank, trust company, savings bank,
savings and loan association or credit  union,  and  "consumer  account"
shall  mean  an account used primarily for personal, family or household
purposes.
  2. NO AGREEMENT FOR PREAUTHORIZED ELECTRONIC  FUND  TRANSFERS  ENTERED
INTO  ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND TWELVE SHALL PERMIT OR
REQUIRE THE TRANSFER FROM A CONSUMER ACCOUNT OF ANY FUNDS AS  A  PENALTY
OR  A  FINAL PAYMENT AFTER THE CONSUMER HAS GIVEN WRITTEN OR ORAL NOTICE
TO STOP PAYMENT TO HIS OR HER FINANCIAL INSTITUTION.
  3. ANY BANKING  INSTITUTION  WHICH  COMPLIES  WITH  THE  STOP  PAYMENT
PROVISIONS OF THE FEDERAL ELECTRONIC FUNDS TRANSFER ACT, AS SUCH ACT MAY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01582-01-1

S. 219                              2

BE AMENDED FROM TIME TO TIME, AND ANY REGULATIONS ADOPTED PURSUANT THER-
ETO,  SHALL  BE  DEEMED  TO BE IN COMPLIANCE WITH THE PROVISIONS OF THIS
SECTION.
  S 2. This act shall take effect immediately.

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