As part of her 2025 State of the State agenda, Governor Kathy Hochul announced new regulations to protect New Yorkers from unfair overdraft fees.
Proposed rules by the Department of Financial Services prohibit excessive charges, such as fees for overdrafts under $20 or multiple fees for the same transaction. Banks must also improve transparency with timely notifications.
These regulations aim to ease financial burdens on low-income residents by capping daily fees and banning predatory practices. Hochul’s broader consumer protection plan includes simplifying subscription cancellations, addressing elder financial fraud, and regulating “Buy Now, Pay Later” services to create a more equitable financial environment.
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