Bill > A01721

This bill requires banks in New York to provide immediate notifications to customers when their accounts have insufficient funds and when overdraft protection services are used. Specifically, banks must send an electronic notification (such as an email) to the customer, or use another notification method preferred by the customer, that clearly explains when their overdraft service has been activated. The notification must include details about any fees or penalties associated with the overdraft service. This applies to banking institutions that offer overdraft protection or similar services that charge a fee to prevent account penalties due to insufficient funds. The bill aims to increase transparency and ensure customers are promptly informed about their account status and potential financial charges. The new requirements would be added to two sections of the banking law, and the act would take effect immediately upon passage.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A1721