Connecticut 2010 Regular Session

Connecticut House Bill HB05309 Compare Versions

Only one version of the bill is available at this time.
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11 General Assembly Raised Bill No. 5309
22 February Session, 2010 LCO No. 1384
33 *01384_______BA_*
44 Referred to Committee on Banks
55 Introduced by:
66 (BA)
77
88 General Assembly
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1010 Raised Bill No. 5309
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1212 February Session, 2010
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1414 LCO No. 1384
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1616 *01384_______BA_*
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1818 Referred to Committee on Banks
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2020 Introduced by:
2121
2222 (BA)
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2424 AN ACT CONCERNING AUTOMATIC OVERDRAFT PROTECTION.
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2626 Be it enacted by the Senate and House of Representatives in General Assembly convened:
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2828 Section 1. Section 36a-303 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
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3030 (a) No bank, Connecticut credit union or federal credit union may charge a fee or a penalty for an overdraft if such overdraft is due to an error on a direct deposit tape of the Social Security Administration or an accidental omission from such tape.
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3232 (b) Each Connecticut bank and credit union shall immediately implement a freeze on an account upon an overdraft and provide written notification to the account holder of such freeze not later than three days after the overdraft. The account shall remain frozen until the customer pays the overdraft fee and requests that the bank or credit union remove the account freeze. No Connecticut bank or credit union may charge a fee or a penalty for any additional overdrafts that would have occurred had the bank or credit union not frozen the account.
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3434 (c) If a Connecticut bank or credit union fails to implement an account freeze pursuant to subsection (b) of this section, neither the bank nor credit union may charge a fee or penalty for any additional overdrafts that occur on the account.
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3939 This act shall take effect as follows and shall amend the following sections:
4040 Section 1 October 1, 2010 36a-303
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4242 This act shall take effect as follows and shall amend the following sections:
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4444 Section 1
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4646 October 1, 2010
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4848 36a-303
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5050 Statement of Purpose:
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5252 To prevent Connecticut banks from charging a fee or penalty for any overdrafts that occur following an initial overdraft.
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5454 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]