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Assembly Bill A1721

2025-2026 Legislative Session

Requires banks to send account notifications in certain circumstances

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Current Bill Status - In Assembly Committee

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2025-A1721 (ACTIVE) - Details

See Senate Version of this Bill:
S4207
Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Add §§135 & 458, Bank L
Versions Introduced in Other Legislative Sessions:
2011-2012: A9250
2013-2014: A785
2015-2016: A3224, S7741
2017-2018: A5413, S4602
2019-2020: A4023, S2807
2021-2022: A8914, S5815
2023-2024: A1478, S2769

2025-A1721 (ACTIVE) - Summary

Requires banks to send account notifications in certain circumstances.

2025-A1721 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1721
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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:

   Section 1. The banking law is amended by adding a new section  135  to
 read as follows:
   §  135.  ACCOUNT  NOTIFICATIONS.  1. WHERE A BANKING INSTITUTION UNDER
 THIS ARTICLE OFFERS ITS CUSTOMERS OR DEPOSITORS OVERDRAFT PROTECTION, OR
 ANY OTHER SIMILAR SERVICE WHEREIN THE BANKING INSTITUTION CHARGES A  FEE
 TO  PREVENT  ACCOUNT  PENALTIES FOR INSUFFICIENT FUNDS, SUCH INSTITUTION
 SHALL NOTIFY  SUCH  CUSTOMER  OR  DEPOSITOR  WHENEVER  SUCH  SERVICE  IS
 EMPLOYED TO PREVENT ACCOUNT PENALTIES.
   2. A BANKING INSTITUTION SHALL IMMEDIATELY NOTIFY A CUSTOMER OR DEPOS-
 ITOR  OF  THE  INSUFFICIENCY  OF  FUNDS  IN SUCH INDIVIDUAL'S ACCOUNT OR
 ACCOUNTS VIA ELECTRONIC MAIL, OR IF THE INDIVIDUAL PREFERS, THROUGH  ANY
 OTHER  METHOD  OF  NOTIFICATION.  SUCH NOTIFICATION SHALL STATE THAT THE
 BANK'S OVERDRAFT SERVICE HAS GONE INTO EFFECT AND SHALL  LIST  ANY  FEES
 AND PENALTIES ASSOCIATED WITH SUCH SERVICE.
   § 2. The banking law is amended by adding a new section 458 to read as
 follows:
   §  458.  ACCOUNT  NOTIFICATIONS.  1. WHERE A BANKING INSTITUTION UNDER
 THIS ARTICLE OFFERS ITS CUSTOMERS OR DEPOSITORS OVERDRAFT PROTECTION, OR
 ANY OTHER SIMILAR SERVICE WHEREIN THE BANKING INSTITUTION CHARGES A  FEE
 TO  PREVENT  ACCOUNT  PENALTIES FOR INSUFFICIENT FUNDS, SUCH INSTITUTION
 SHALL NOTIFY  SUCH  CUSTOMER  OR  DEPOSITOR  WHENEVER  SUCH  SERVICE  IS
 EMPLOYED TO PREVENT ACCOUNT PENALTIES.
   2. A BANKING INSTITUTION SHALL IMMEDIATELY NOTIFY A CUSTOMER OR DEPOS-
 ITOR  OF  THE  INSUFFICIENCY  OF  FUNDS  IN SUCH INDIVIDUAL'S ACCOUNT OR
 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

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