New California laws target bank fees, consumer protections

CALIFORNIA GOV. GAVIN NEWSOM (D) signed several consumer protection measures into law Tuesday, including one that prohibits some banks and credit unions from charging insufficient fund fees in the state.

• The law (AB 2017) only applies to state-chartered financial institutions, but reporting requirements enacted in 2022 have revealed that a small number of such banks and credit unions are making millions of dollars in insufficient fund fees annually.
• Newsom also signed a measure (SB 1061) prohibiting consumer credit reporting agencies from including medical debt on credit reports.
• Both laws are similar to federal rules proposed by ...