New York S 7031: Relates to overdraft fees charged by banking organizations

Bill Text

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S07031 Summary:

BILL NOS07031 

&nbsp

SAME ASSAME AS A00117

&nbsp

SPONSORSEPULVEDA

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add §§37-b, 135 & 6-q, amd §456, Bank L

&nbsp

Requires banks to report to the superintendent annually on the amount of revenue earned from overdraft fees; prohibits banks from imposing overdraft fees during a ten day grace period; regulates the imposition of overdraft and NSF fees.

Go to top S07031 Actions:

BILL NOS07031 

&nbsp

03/28/2025REFERRED TO BANKS

01/07/2026REFERRED TO BANKS

Go to topS07031 Committee&nbspVotes:

Go to topS07031 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS07031 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7031

 2025-2026 Regular Sessions

 IN SENATE

 March 28, 2025
 ___________

 Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
 printed to be committed to the Committee on Banks

 AN ACT to amend the banking law, in relation to overdraft fees charged
 by banking organizations

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The banking law is amended by adding a new section 37-b to
 2 read as follows:
 3 § 37-b. Report on overdraft fees. 1. Every banking organization
 4 subject to the examination authority of the superintendent shall report
 5 annually, on or before March first, to the superintendent on the amount
 6 of revenue earned from overdraft fees and non-sufficient funds fees
 7 collected in the most recently completed calendar year and the percent-
 8 age of that revenue as a proportion of the net income of the banking
 9 organization. The superintendent shall publish a report containing such
 10 data for each organization on the department's internet website.
 11 2. The superintendent shall publish the first report required by this
 12 section on or before August thirty-first, two thousand twenty-six,
 13 covering data from the two thousand twenty-three calendar year, and
 14 annually thereafter by March thirty-first of each year.
 15 3. As used in this section:
 16 (a) "Non-sufficient funds fees" means fees resulting from the initi-
 17 ation of a transaction that exceeds the customer's account balance if
 18 the customer's banking organization declines to make the payment.
 19 (b) "Overdraft fees" means fees resulting from the processing of a
 20 debit transaction that exceeds a customer's account balance.
 21 § 2. The banking law is amended by adding a new section 135 to read as
 22 follows:
 23 § 135. Overdraft fees. 1. No banking organization shall impose an
 24 overdraft fee or non-sufficient funds fee prior to a period of ten days
 25 from the date of the subject transaction during which time period the

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD00517-01-5

 S. 7031 2

 1 member may deposit funds in an amount sufficient to cover the trans-
 2 action.
 3 2. For the purposes of this section:
 4 (a) "Non-sufficient funds fees" means fees resulting from the initi-
 5 ation of a transaction that exceeds the customer's account balance if
 6 the customer's bank or trust company declines to make the payment.
 7 (b) "Overdraft fees" means fees resulting from the processing of a
 8 debit transaction that exceeds a customer's account balance.
 9 § 3. Section 456 of the banking law is amended by adding a new subdi-
 10 vision 10 to read as follows:
 11 10. (a) Impose an overdraft fee or non-sufficient funds fee prior to a
 12 period of ten days from the date of the subject transaction during which
 13 time period the member may deposit funds in an amount sufficient to
 14 cover the transaction.
 15 (b) For the purposes of this subdivision:
 16 (i) "Non-sufficient funds fees" means fees resulting from the initi-
 17 ation of a transaction that exceeds the customer's account balance if
 18 the customer's bank or credit union declines to make the payment.
 19 (ii) "Overdraft fees" means fees resulting from the processing of a
 20 debit transaction that exceeds a customer's account balance.
 21 § 4. The banking law is amended by adding a new section 6-q to read as
 22 follows:
 23 § 6-q. Improper practices relating to the imposition