Bill > A01022

This bill establishes a Banking Bill of Rights in New York to protect consumers from arbitrary account closures and application denials by financial institutions. The legislation requires banks, credit unions, and other financial entities to provide written notice with specific reasons when denying a credit or deposit account application or taking adverse action against an existing account, such as account closure. Financial institutions must give applicants and customers at least 30 days' notice (or 5 days in cases of potential fraud) and provide an opportunity to contest or correct the information leading to the adverse action. The bill imposes significant penalties for non-compliance, including $10,000 per violation, actual damages, attorneys' fees, and potential punitive damages for repeat offenders. The law aims to prevent discriminatory banking practices that disproportionately impact immigrant and underserved communities, creating barriers to financial access. Institutions are still allowed to make reasonable business judgments, and the superintendent of financial services is authorized to develop implementing regulations. The bill creates a mechanism for consumers to file complaints with the financial services superintendent and establishes a presumption of discriminatory practice if institutions fail to follow the new due process requirements.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A1022