HB1243 (2010) Detail

Relative to automatic teller machine card overdraft fees.






AN ACT relative to automatic teller machine card overdraft fees.

SPONSORS: Rep. Butler, Carr 1

COMMITTEE: Commerce and Consumer Affairs


This bill requires written consent by a consumer before overdraft fees may be charged by a bank.

This bill also requires banks to notify a consumer if his or her purchase or withdrawal will cause an overdraft.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.




In the Year of Our Lord Two Thousand Ten

AN ACT relative to automatic teller machine card overdraft fees.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 When Bank May Charge Customer’s Account; Automatic Teller Machine Cards. RSA 382-A:4-401(a) is repealed and reenacted to read as follows:

(a)(1) A bank may charge against the account of a customer an item that is properly payable from the account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and bank.

(2) In the case of purchase or withdrawals made with an automatic teller machine card, a bank may charge a fee for an overdraft caused by a purchase or withdrawal only if the bank has presented the card holder with a description of costs associated with overdrafts in plain terms and the card holder has consented with a written signature. If a card holder consents, he or she shall be notified at the time of purchase or withdrawal that the transaction will result in a negative balance in the card holder’s account.

2 Severability. If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

3 Effective Date. This act shall take effect January 1, 2011.