Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.
Impact
The introduction of A05031 is expected to significantly impact the banking practices of financial institutions operating within New York. By mandating advance notice of account closures and requiring transparency in the reasons for such actions, the bill seeks to empower consumers and provide them with adequate time to manage their finances accordingly. This legislative change could lead to greater accountability among banks and improve the overall trust between consumers and financial institutions. Furthermore, it may set a precedent for similar regulations in other states aiming to protect consumers in their banking experiences.
Summary
Bill A05031 aims to amend the banking law in the state of New York by establishing specific criteria that banking organizations must follow when closing accounts. The proposed legislation requires banks to provide customers with at least sixty days’ notice before any account closure, regardless of whether the account is for personal or business use. Additionally, the bill stipulates that banks must inform account holders of the reasons for closing their accounts and ensure that any remaining funds are returned within the same sixty-day period following the closure. This measure is intended to enhance customer rights and protections in banking practices.
Contention
There may be notable points of contention surrounding Bill A05031, particularly regarding its implications for banking operations. Some banks and financial institutions might argue that the requirements for providing notice and returning funds could complicate their administrative processes, especially when dealing with identity theft or fraud cases. Critics of the bill may also fear that imposition of such regulations might reduce banks' flexibility in managing their accounts. Additionally, if the legislation results in increased compliance costs for banks, these costs might be passed on to consumers in the form of higher fees or restricted services.
Same As
Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.
Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.
Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.
Relates to establishing the banking bill of rights; includes due process requirements regarding applications for or closure of credit and deposit accounts and penalties for noncompliance.
Relates to establishing the banking bill of rights; includes due process requirements regarding applications for or closure of credit and deposit accounts and penalties for noncompliance.
Institutes a moratorium on the closure of hospitals until the department of health completes a comprehensive analysis and report on the impact of such closures on healthcare access in New York state.
Relates to establishing limitations on bank accounts after such accounts have been closed including opening or re-opening such account, requesting a deposit or withdrawal or assessing certain fees.
Relates to establishing limitations on bank accounts after such accounts have been closed including opening or re-opening such account, requesting a deposit or withdrawal or assessing certain fees.
Provides that school districts, including the city school district of the city of New York, are entitled to an apportionment of state aid for the closure of schools due in response to the novel coronavirus.