Banking Law (Customer Service) (Amendment – Financial Education Course for a Customer Exceeding the Credit Line or with a Cash Flow Overdraft) Bill

What does the bill do?

The bill adds a section to the Banking Law requiring banking corporations to offer a basic financial education course to a customer suffering from exceeding their credit line or a cash-flow overdraft (a situation in which debits exceeded credits for three months or the account exceeded the credit line). The course will include topics such as managing a household budget, the meaning of interest and fees, and debit balances, and responsible conduct in taking loans. Participation in the course will be at the customer's choice and will not be a condition for receiving banking service. The Governor will set rules on notifying the customer, the course format (online, in person or combined), and exceptions in which the course will not be offered. Banks that do not comply with the provision may be subject to a financial sanction.