Bill Text: CA SB1075 | 2023-2024 | Regular Session | Amended
Bill Title: Credit unions: overdraft and nonsufficient funds fees.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Enrolled) 2024-09-04 - Enrolled and presented to the Governor at 4 p.m. [SB1075 Detail]
Download: California-2023-SB1075-Amended.html
Amended
IN
Assembly
June 24, 2024 |
Amended
IN
Senate
May 20, 2024 |
Amended
IN
Senate
May 09, 2024 |
Amended
IN
Senate
April 09, 2024 |
Amended
IN
Senate
April 08, 2024 |
Introduced by Senators Bradford and Limón |
February 12, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 14053 is added to the Financial Code, to read:14053.
(a) For purposes of this section, the following definitions apply:(b)A credit union
with assets exceeding one billion dollars ($1,000,000,000) shall provide a customer at least three business days before requiring payment of an overdraft fee to give the customer an opportunity to repay the amount that triggered the overdraft fee.
(d)A credit union
with assets exceeding one billion dollars ($1,000,000,000) shall disclose the requirements of subdivisions (b) and (c) to all customers by January 31, 2025.
(e)This section shall remain in effect only until January 1, 2026, and as of that date is repealed.
(a)For purposes of this section, the following definitions apply:
(1)“Fee” means a nonsufficient funds fee or an overdraft fee.
(2)“Nonsufficient funds fee” means a fee resulting from the initiation of a transaction that exceeds the customer’s account balance if the customer’s credit union declines to make the payment.
(3)“Overdraft fee” means a fee resulting from the processing of a transaction that exceeds a customer’s account balance.
(b)A credit union shall provide a customer at least three business days before requiring payment of an
overdraft fee to give the customer an opportunity to repay the amount that triggered the overdraft fee.
(c)A credit union shall not charge a fee exceeding fourteen dollars ($14) or the amount set by the federal Consumer Financial Protection Bureau for the fee, whichever is lower.
(d)A credit union shall disclose the requirements of subdivisions (b) and (c) to all customers by January 31, 2026, and then annually thereafter.
(e)This section shall become operative January 1, 2026.