New York A01721 mandates banks to notify customers when overdraft protection services are used to avoid penalties.

New York A01721 amends the banking law by adding a new section requiring banks to inform customers or depositors when their overdraft protection service is used to prevent penalties for insufficient funds. Banks must also notify customers immediately if their account lacks sufficient funds, via email or another preferred method, stating that the bank's overdraft service has been activated and listing any associated fees and penalties. This act takes effect immediately.

New York A01721 mandates banks to notify customers when overdraft protection services are used to avoid penalties.

New York A01721 amends the banking law by adding a new section requiring banks to inform customers or depositors when their overdraft protection service is used to prevent penalties for insufficient funds. Banks must also notify customers immediately if their account lacks sufficient funds, via email or another preferred method, stating that the bank's overdraft service has been activated and listing any associated fees and penalties. This act takes effect immediately.