BILL NUMBER: S2877A
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the banking law, in relation to prohibiting certain
financial institutions from charging a fee for periodic paper statements
 
PURPOSE OR GENERAL IDEA OF BILL:
To prohibit financial institutions from charging for paper statements,
when those statements are required for an application for public bene-
fits.
 
SUMMARY OF PROVISIONS:
Section 1: Amends the banking law by adding a new section 9-aa: prohib-
its fees for periodic paper statements. No financial institution subject
to the provisions of this chapter, Including any banking organization,
mortgage broker or mortgage banker, Interstate branch established pursu-
ant to article five-c of this chapter, or other investment entity
subject to regulation by the department, which provides an account to a
customer shall charge a fee for periodic paper statements when such
statements are required for an application for public assistance as
defined in subdivision nineteen of section two of the social service
law.
Section 2: Provides the effective date.
 
JUSTIFICATION:
Fees, charged by financial institution, for periodic bank statements
that are in paper format have been reported to be as high as $6 per
statement for each month. Many who apply for public benefits are on
fixed incomes but nevertheless must pay there onerous fees to comply
with the present application rules. Presently, high fees for paper bank
statements may put them in a difficult financial situation or otherwise
render them unable to successfully complete the application process.
 
PRIOR LEGISLATIVE HISTORY:
S5811 2022
S 6865 COMRIE Same as A 8015 Weprin
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.