senate Bill S219A

Signed by Governor

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

See Assembly Version of this Bill:
A9787
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, A6359, S1055C
2007-2008: S104, A9031B, S104

Sponsor Memo

BILL NUMBER:S219A

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
subdivisions 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,
2013.

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--A

                       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  --  recommitted  to  the
  Committee on Banks in accordance with Senate Rule 6, sec. 8 -- commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

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 and as further amended by section  104  of  part  A  of
chapter 62 of the laws of 2011, 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
superintendent of financial services, 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  pursuant  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 char-
tered bank, trust company, savings bank, savings and loan association or
credit union, and "consumer account" shall mean an account used primari-
ly for personal, family or household purposes.
  2. NO AGREEMENT FOR PREAUTHORIZED ELECTRONIC  FUND  TRANSFERS  ENTERED
INTO  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN SHALL PERMIT OR
REQUIRE THE TRANSFER FROM A CONSUMER ACCOUNT OF ANY FUNDS AS  A  PENALTY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01582-02-1

S. 219--A                           2

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
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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