senate Bill S219A

Signed By Governor
2011-2012 Legislative Session

Relates to preauthorized electronic fund transfers

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Archive: Last Bill Status - Signed by Governor


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

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Actions

view actions (24)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2012 signed chap.403
Aug 06, 2012 delivered to governor
Jun 18, 2012 returned to senate
passed assembly
ordered to third reading rules cal.313
substituted for a9787
Mar 26, 2012 referred to banks
delivered to assembly
passed senate
Mar 13, 2012 advanced to third reading
Mar 12, 2012 2nd report cal.
Mar 07, 2012 1st report cal.313
Jan 13, 2012 print number 219a
amend and recommit to banks
Jan 04, 2012 referred to banks
returned to senate
died in assembly
Apr 12, 2011 referred to banks
delivered to assembly
passed senate
Mar 14, 2011 advanced to third reading
Mar 10, 2011 2nd report cal.
Mar 09, 2011 1st report cal.203
Jan 05, 2011 referred to banks

Votes

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Mar 7, 2012 - Banks committee Vote

S219A
19
0
committee
19
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Banks committee vote details

Mar 9, 2011 - Banks committee Vote

S219
19
0
committee
19
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

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S219 - Bill Details

See Assembly Version of this Bill:
A9787
Law Section:
Banking Law
Laws Affected:
Amd §9-s, Bank L
Versions Introduced in 2009-2010 Legislative Session:
S1055C, A6359

S219 - Bill Texts

view 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.

view 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.

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                    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.

Co-Sponsors

view additional co-sponsors

S219A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9787
Law Section:
Banking Law
Laws Affected:
Amd §9-s, Bank L
Versions Introduced in 2009-2010 Legislative Session:
S1055C, A6359

S219A (ACTIVE) - Bill Texts

view 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.

view 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 full text
download pdf
                    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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