A new piece of legislation has been signed by Governor Cuomo that requires banks to prevent overdraft fees.
The way it will work is that banks are required to have checking accounts to pay checks in the order that they are received.
When banks receive a check that’s greater than the amount in the account, they can decline it, but they must cash checks that have enough to be paid with the existing account balance.
The way it works now is if a bank gets a check that’s for a larger amount than the balance in the account, they will not honor the check or any checks after that even if there is enough money in the account.
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