Bill > S04207

This bill requires banks to provide immediate notifications to customers when their accounts have insufficient funds and the bank employs overdraft protection services. Specifically, banks must notify customers via electronic mail (or another method of the customer's preference) when their overdraft protection service is used to prevent account penalties. These notifications must clearly state that the overdraft service has been activated and include a detailed list of any associated fees and penalties. The bill applies to banking institutions that offer overdraft protection or similar services where a fee is charged to prevent insufficient fund penalties. By mandating these notifications, the bill aims to increase transparency and help customers quickly understand their account status and potential financial charges. The law would take effect immediately upon passage and appears to be designed to protect consumers by ensuring they are promptly informed about overdraft-related activities in their bank accounts.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S4207