Gov. Kathy Hochul on Friday signed a bill that directs the New York state’s Department of Financial Services to conduct a study of the impact of overdraft fees on consumers, and to submit a report on its findings within 12 months.
According to the bill, the study must include, but is not limited to:
- the total amount of overdraft fees paid in New York state;
- geographical distribution of such fees;
- identification of any communities that have high rates of overdraft fees and the possible reason for such high rates;
- the percentage of overdraft fees reduced through direct or indirect negotiation; and
- enumeration of consumer rights relating to fee negotiation.
Last week, DFS issued new guidance for New York-regulated banking institutions in an effort “to promote financial inclusion by prohibiting unfair and deceptive overdraft and non-sufficient funds fee practices,” as reported in the New York Minute.