Bill > S07583

This bill establishes a "Banking Bill of Rights" in New York, which includes due process requirements for financial institutions regarding applications for or closure of credit and deposit accounts. The key provisions are: 1. Financial institutions must provide written notice with specific reasons for denying an application for credit or a deposit account within 10 days, and provide at least 30 days' written notice of any adverse action on an existing customer's credit or deposit account, with some exceptions. 2. Financial institutions must provide a reasonable opportunity for applicants or customers to contest or correct any information related to the denial of an application or pending adverse action, and consider any information provided before making a final decision. 3. Violations of the notice and due process requirements can result in penalties of $10,000 per violation, actual damages, attorneys' fees, and potentially punitive damages for repeat offenders. Violations also create a presumption of unlawful discrimination. 4. The bill authorizes the Superintendent of Financial Services to promulgate rules and regulations to enforce these new requirements.

Government Affairs

https://www.nysenate.gov/legislation/bills/2023/S7583