An Act to require financial institutions to pay late fees when it fails to conduct an electronic transfer
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No additional cosponsors.
| Committee | Recommendation | Vote |
|---|---|---|
| J11 | Accompanied | — |
Chapter 167B of the General Laws, as appearing in the 2022 official edition, is amended by inserting after section 10 the following new section:-
If a financial institution fails to pay a preauthorized transfer authorized by a consumer for any reason other than those stated in section 10, and as a result the consumer is charged with a fine, penalty and/or late charge, by a third party then said financial institution shall pay the third party or reimburse the consumer the fine, penalty and/or charge, and any interest associated with the failure to pay within 5 days of discovering the error by the financial institution or within 5 days of when the consumer reports the error to the financial consumer. Should a financial institution who willfully and knowingly fails to comply with this section, then a consumer shall be entitled to treble damages as determined under clause (1) of subsection (a) of section 20 from said financial institution.
Chapter 167B of the General Laws, as appearing in the 2022 official edition, is amended by inserting after section 10 the following new section:- Section 10A. If a financial institution fails to pay a preauthorized transfer authorized by a consumer for any reason other than those stated in section 10, and as a result the consumer is charged with a fine, penalty and/or late charge, by a third party then said financial institution shall pay the third party or reimburse the consumer the fine, penalty and/or charge, and any interest associated with the failure to pay within 5 days of discovering the error by the financial institution or within 5 days of when the consumer reports the error to the financial consumer. Should a financial institution who willfully and knowingly fails to comply with this section, then a consumer shall be entitled to treble damages as determined under clause (1) of subsection (a) of section 20 from said financial institution.