New York requires financial institutions to provide written notice prior to charging account inactivity fees

State Issues State Legislation Consumer Finance Fees

On November 11, the New York governor signed S4188, which requires financial institutions to provide written notice to an account holder 30 days prior to charging any fee based on account inactivity. The provision applies to financial institutions as well as mortgage brokers, mortgage bankers, or other investment entities, “whether headquartered within or outside the state.” E-mail notifications will also satisfy the written notice requirement. The act will take effect 90 days after it was signed.