Senate Bill 1075 in the California State Legislature — legislation on overdraft and non-sufficient fund (NSF) fees — is now headed to the Senate floor after the California Senate Appropriations Committee deemed the bill to have insignificant costs on the state’s budget.
The California Credit Union League needs your help in raising the credit union movement’s voice! The League is urging all credit union supporters to Connect for the Cause in opposition against SB 1075. Please have your staff and members tell your state senator you oppose this bill.
SB 1075 imposes stringent requirements on how state-chartered credit unions serve their members that utilize overdraft protection services by limiting the number of overdraft and NSF transactions to three per month. It also mandates a five-day waiting period before a fee can be assessed for an overdraft transaction.
You can read more about the bill and its harmful effects in this Senate Floor Alert sent by the League to all legislators in the California State Senate.
Given conversations with appropriations staff during the recent Government Relations Rally (GRR) in Sacramento, League leaders felt there was a 50-percent chance whether the bill would be sent to the floor versus heard in the appropriation committee. GRR attendees urged the state legislature to allow the overdraft process at the Consumer Financial Protection Bureau (CFPB) to play out before continuing conversations on courtesy overdraft or non-sufficient fund transactions at the state level.
While SB 1075 being heard in the appropriations committee this week would have been preferred, the League is still ready to engage this bill on the Senate floor. Please take action today in defending your credit union’s ability to serve members!
If you have any questions about SB 1075 or Connect for the Cause, email Robert Wilson, senior vice president of state government affairs for the California and Nevada Credit Union Leagues.
