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HOUSE DOCKET, NO. 565 FILED ON: 1/10/2025
HOUSE . . . . . . . . . . . . . . . No. 1111
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Tackey Chan
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act to require financial institutions to pay late fees when it fails to conduct an electronic
transfer.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Tackey Chan2nd Norfolk1/10/2025 1 of 2
HOUSE DOCKET, NO. 565 FILED ON: 1/10/2025
HOUSE . . . . . . . . . . . . . . . No. 1111
By Representative Chan of Quincy, a petition (accompanied by bill, House, No. 1111) of Tackey
Chan for legislation to require financial institutions to pay late fees upon failure to conduct
electronic transfers. Financial Services.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 972 OF 2023-2024.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
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An Act to require financial institutions to pay late fees when it fails to conduct an electronic
transfer.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 Chapter 167B of the General Laws, as appearing in the 2022 official edition, is amended
2by inserting after section 10 the following new section:-
3 Section 10A. If a financial institution fails to pay a preauthorized transfer authorized by a
4consumer for any reason other than those stated in section 10, and as a result the consumer is
5charged with a fine, penalty and/or late charge, by a third party then said financial institution
6shall pay the third party or reimburse the consumer the fine, penalty and/or charge, and any
7interest associated with the failure to pay within 5 days of discovering the error by the financial
8institution or within 5 days of when the consumer reports the error to the financial consumer.
9Should a financial institution who willfully and knowingly fails to comply with this section, then 2 of 2
10a consumer shall be entitled to treble damages as determined under clause (1) of subsection (a) of
11section 20 from said financial institution.