WBK Industry News - State Regulatory Developments

New York Law Requires Prior Notice Before Charging Account Inactivity Fee

The New York governor recently signed into law a bill requiring all financial institutions subject to New York’s banking law (including mortgage brokers and mortgage bankers) to give customers written notice of any fee based on account inactivity that the institution may charge.  The law applies to all financial institutions subject to New York law, “whether headquartered within or outside the state.” 

Under the new law the institution must send the notice in writing (electronic notice is also permitted) at least thirty days before charging the fee.  The law will take effect February 9, 2021.