General Assembly Raised Bill No. 5309
February Session, 2010 LCO No. 1384
*01384_______BA_*
Referred to Committee on Banks
Introduced by:
(BA)
General Assembly
Raised Bill No. 5309
February Session, 2010
LCO No. 1384
*01384_______BA_*
Referred to Committee on Banks
Introduced by:
(BA)
AN ACT CONCERNING AUTOMATIC OVERDRAFT PROTECTION.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 36a-303 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(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.
(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.
(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.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2010 36a-303
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2010
36a-303
Statement of Purpose:
To prevent Connecticut banks from charging a fee or penalty for any overdrafts that occur following an initial overdraft.
[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.]