Budget Amendment ID: FY2019-S4-396-R1

Redraft GOV 396

Consumer Banking Transparency

Messrs. Eldridge, Brady, Ross and O'Connor moved that the proposed new text be amended by adding the following section:

SECTION XX. Chapter 167 of the General Laws is hereby amended by inserting after section 7 the following sections:

Section 7A. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Account”, a deposit account at a bank that is held by or offered to a consumer, including but not limited to time, demand, savings, negotiable order of withdrawal, interest-bearing and noninterest-bearing accounts.

“Bank”, any association or corporation chartered by the commonwealth under chapters 168, 170, 171 or 172, or an individual, association, partnership or corporation incorporated or doing a banking business in the commonwealth subject to the supervision of the commissioner.

“Commissioner”, the commissioner of banks.

“Consumer”, a natural person who holds an account primarily for personal, family, or household purposes, or to whom such an account is offered.  The term does not include accounts held by a natural person on behalf of another in a professional capacity or accounts held by individuals as sole proprietors.

“Loan”, a loan by a bank to a consumer that includes secured loans, unsecured loans, and lines of credit.

(b) Banks shall submit financial information to the division of banks on at least a weekly basis for publication on the division of banks website. Financial information shall include, but not be limited to:

(1) The types of consumer accounts available at the bank;

(2) Fees, charges, and interest associated with the types of consumer accounts available at the bank;

(3) Fees, interest, terms, and conditions associated with certificates of deposit offered by the bank;

(4) Fees, interest, terms, and conditions associated with money market accounts offered by the bank;

(5) Types of loans offered by the bank to consumers; and

(6) Fees, interest, terms, and conditions associated with each type of loan.

(c) The commissioner shall publish bank financial information through the division of banks website.  Such information shall be provided in a clear and concise format so that consumers may understand the financial information provided by the banks.

Section 7B. Each bank shall have a duty to disclose to potential depositors and potential consumers the highest interest rate available based upon the amount of the deposit or deposit renewal if the potential depositor or consumer is the holder of a certificate of deposit or money market account, notwithstanding any increase in the amount deposited or increase in the length of time of the deposit.