Relating to a financial institution's action regarding certain withdrawals and deposits.
Notes
It is important to note that the proposed changes will only apply to deposit contracts or written agreements entered into or renewed after September 1, 2009, meaning accounts established before this date would continue to adhere to the previous regulations.
Impact
The introduction of HB2946 is expected to have a significant impact on state banking laws by reinforcing consumer protections. With these measures in place, account holders will experience improved transparency and fairness in how banks assess deposits against withdrawals, particularly concerning fees associated with overdrafts. The requirement that banks must consider the timing of deposits and withdrawals could potentially reduce instances where customers incur fees due to the timing discrepancies between their transactions and when the bank processes them.
Summary
House Bill 2946 seeks to amend the Finance Code of Texas by establishing specific provisions regarding the treatment of deposits and withdrawals by financial institutions. The bill stipulates that deposits made by an account holder should be credited to their account before considering any withdrawals made on the same business day. This measure aims to protect consumers from overdraft fees or insufficient funds charges if there are sufficient funds in the account on the day the bank attempts to withdraw funds. Essentially, this legislation is designed to enhance clarity and fairness in banking practices related to deposits and withdrawals.
Contention
While supporters of HB2946 argue that these changes are necessary for protecting consumers, there may be concerns raised by financial institutions regarding how these new regulations could affect their operational procedures. Banking representatives may contend that the bill places undue restrictions on how they manage account transactions, which could result in administrative burdens or complications in their payment processing systems. Thus, stakeholders from both sides might engage in discussions about the balance between consumer protection and the operational viability for banks.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the location of a bank eligible to be selected as a depository or subdepository of county public money, including money held by a county or district clerk.
Relating to amendments to the Uniform Commercial Code, including amendments concerning certain intangible assets and the perfection of security interests in those assets.
Relating to amendments to the Uniform Commercial Code, including amendments concerning certain intangible assets and the perfection of security interests in those assets.
Relating to the collection and publication of information regarding the use of environmental, social, or governance scores by certain financial institutions.
Water supply: conservation; limits on water withdrawals under part 327 of the natural resources and environmental protection act; amend. Amends secs. 32707 & 32723 of 1994 PA 451 (MCL 324.32707 & 324.32723) & adds sec. 32707a.