New York S04207 requires banks to notify customers when their overdraft protection service is used to prevent penalties for insufficient funds.

New York S04207 amends the banking law to mandate that banks notify customers or depositors when their overdraft protection service is employed to prevent penalties for insufficient funds. The notification must be sent immediately via email or another preferred method, stating that the bank's overdraft service has been activated and listing any associated fees and penalties. This requirement applies to banking institutions offering overdraft protection or similar services that charge fees to avoid penalties for insufficient funds. The act takes effect immediately upon enactment.

New York S04207 requires banks to notify customers when their overdraft protection service is used to prevent penalties for insufficient funds.

New York S04207 amends the banking law to mandate that banks notify customers or depositors when their overdraft protection service is employed to prevent penalties for insufficient funds. The notification must be sent immediately via email or another preferred method, stating that the bank's overdraft service has been activated and listing any associated fees and penalties. This requirement applies to banking institutions offering overdraft protection or similar services that charge fees to avoid penalties for insufficient funds. The act takes effect immediately upon enactment.