Bill Text: CA AB2017 | 2023-2024 | Regular Session | Chaptered
Bill Title: Banks and credit unions: nonsufficient funds fees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2024-09-24 - Chaptered by Secretary of State - Chapter 509, Statutes of 2024. [AB2017 Detail]
Download: California-2023-AB2017-Chaptered.html
Assembly Bill
No. 2017
CHAPTER 509
An act to add Chapter 5.5 (commencing with Section 530) to Division 1 of the Financial Code, relating to financial institutions.
[
Approved by
Governor
September 24, 2024.
Filed with
Secretary of State
September 24, 2024.
]
LEGISLATIVE COUNSEL'S DIGEST
AB 2017, Grayson.
Banks and credit unions: nonsufficient funds fees.
Existing law, the Banking Law, defines and regulates banks and commits the enforcement of banking laws to the Commissioner of Financial Protection and Innovation. Existing law, the California Credit Union Law, defines and regulates credit unions and commits enforcement of credit union laws to the commissioner. Existing law requires a bank or credit union subject to the examination authority of the commissioner to report annually, on or before March 1, to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees, as defined, collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank.
This bill would prohibit certain banks and credit unions from
charging a consumer a nonsufficient funds fee when the consumer’s attempt to initiate a transaction is declined instantaneously or near instantaneously due to nonsufficient funds, as specified.
