In September 2024, California Governor Gavin Newsom signed Senate Bill 1075 into law, which limits the amount of non-sufficient funds (NSF) and overdraft fees that state-licensed credit unions may charge. The law also mandates that credit unions provide a notification to members each time a fee is assessed.
Authored by Senators Steven Bradford and Monique Limon and introduced in February 2024, the bill initially included a five-day waiting period before charging overdraft or NSF fees and capped monthly fees at three per member. The California Credit Union League advocated for amendments to remove these provisions, replacing them with a requirement for straightforward notifications to members when an overdraft occurs, along with a fee limit of $14 or the amount determined by the Consumer Financial Protection Bureau (CFPB) upon finalizing its proposed overdraft rule.
Read the Leagues’ Compliance Bulletin, which includes information on SB 1075’s effective date, applicability, statute affected, background, and key provisions.
Please share this with your credit union’s CEO, COO, risk officers, security officers, compliance officers, branch managers, and operations managers.
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:
Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!
Additionally, other League-member compliance resources include:
For more information, email Lisa Quaranta.
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