SB 1075: Credit unions: overdraft and nonsufficient funds fees.

The California Credit Union Law generally provides for the organization and regulation of credit unions by the Commissioner of Financial Protection and Innovation. Existing law requires a credit union subject to the examination authority of the commissioner to report annually to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees, as defined and specified.

This bill would require a credit union to provide a member a notice each time the credit union assesses an overdraft fee or nonsufficient funds fee, as specified. Beginning January 1, 2026, the bill would prohibit a credit union from charging an overdraft fee or a nonsufficient funds fee exceeding $14 or the amount set by the federal Consumer Financial Protection Bureau for the fee, whichever is lower.