Bill > S01161

This bill establishes a "Banking Bill of Rights" to protect consumers from arbitrary and potentially discriminatory banking practices in New York. It requires financial institutions (which include banks, credit unions, and other financial service providers) to provide written explanations when denying credit or deposit account applications or taking adverse actions against existing accounts. Specifically, institutions must provide detailed reasons for denials within ten days of an application and give at least 30 days' notice before taking adverse actions against existing accounts, with some exceptions for fraud or potentially unlawful activities. The bill mandates that financial institutions give consumers an opportunity to contest or correct information and consider any additional information provided before making final decisions. For violations, institutions can be liable for $10,000 per violation, actual damages, attorney's fees, and potentially punitive damages. Consumers can file complaints with the superintendent of financial services, and violations create a presumption of discriminatory practice. The legislation aims to prevent unfair banking practices that disproportionately impact vulnerable communities, particularly immigrants, by ensuring transparency and due process in banking decisions. The bill does not limit financial institutions' ability to make reasonable business judgments and allows the superintendent of financial services to create implementing regulations.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S1161