Bill > A00117

This bill introduces several new regulations on overdraft and non-sufficient funds (NSF) fees for banking organizations in New York. Banks will be required to annually report to the superintendent the total revenue earned from overdraft and NSF fees, including what percentage these fees represent of the bank's net income, with the first report due by August 31, 2026, covering data from 2023. The bill establishes a mandatory ten-day grace period during which banks cannot charge overdraft or NSF fees, allowing customers time to deposit funds to cover a transaction that initially exceeded their account balance. Additionally, the bill prohibits banks from charging overdraft fees on debit card transactions that did not originally exceed the account balance, limits overdraft protection transfer fees to only one charge when the transfer is insufficient, and mandates that banks can only charge a single NSF fee per transaction, even if the transaction is re-presented multiple times. These provisions aim to provide consumers with more protection against excessive banking fees and increase transparency about fee structures. The bill will take effect 60 days after becoming law.

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https://www.nysenate.gov/legislation/bills/2025/A117