Connecticut Seal

General Assembly

 

Raised Bill No. 5047

February Session, 2010

 

LCO No. 536

 

*00536_______BA_*

Referred to Committee on Banks

 

Introduced by:

 

(BA )

 

AN ACT CONCERNING NEGATIVE ACCOUNT BALANCES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 36a-303 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):

(a) No bank, Connecticut credit union or federal credit union may charge a fee or a penalty for an overdraft if such overdraft is due to an error on a direct deposit tape of the Social Security Administration or an accidental omission from such tape.

(b) No Connecticut bank may charge a customer a fee or penalty for an overdraft provided such customer cures a negative account balance on the business day following an insufficient funds alert issued to the customer by the bank.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2010

36a-303

Statement of Purpose:

To allow bank customers to cure an insufficient account balance before they are charged an overdraft fee.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]