An Act to require financial institutions to pay late fees when it fails to conduct an electronic transfer

This bill requires financial institutions in Massachusetts to reimburse consumers for late fees and penalties if the bank fails to process a preauthorized electronic transfer. Under the new rule, the bank must cover these costs and any associated interest within five days of discovering the error or being notified by the customer. Additionally, the legislation mandates that consumers receive three times the amount of damages if the bank knowingly and willfully refuses to comply with these requirements.