Connecticut Senate Bill SB00189

Connecticut 2019 Regular Session

• Introduced: 1/23/19
• Refer: 1/23/19

Caption

An Act Prohibiting A Bank From Charging A Fee To Cash A Check Payable At Such Bank Or Drawn On An Account Held At Such Bank.

Impact

If passed, SB00189 would amend section 36a-317b of the general statutes, directly impacting banking practices within the state. The removal of check cashing fees could facilitate greater financial inclusivity by ensuring that more individuals have access to their funds without additional costs. This change may particularly benefit lower-income individuals or those who do not utilize banking services frequently. By prohibiting these fees, the bill aligns with consumer rights and protection ideologies emphasized in contemporary financial legislation.

Summary

SB00189 is a legislative measure aimed at prohibiting banks from charging fees for cashing checks that are either payable at the bank itself or drawn on an account held at that bank. The bill was introduced to protect consumers from potentially exploitative banking practices, particularly affecting individuals who might rely heavily on cashing checks without incurring additional fees. Advocates for this bill argue that such fees pose a barrier to financial access and contribute to the broader issue of economic inequality among consumers who may already be financially vulnerable.

Contention

While supporters laud the bill for its consumer-friendly approach, opponents might argue that such regulations could potentially reduce the revenue banks generate from service fees which, in turn, could affect their ability to serve clients effectively or invest in service improvements. Critics may express concerns regarding the financial sustainability of such prohibitions, hinting at the need for alternative revenue models for banks that do not compromise their service offerings or customer accessibility. Thus, the discussions surrounding SB00189 could reflect a tension between consumer protection advocacy and the financial industry's concerns about operational viability.