California cracks down on bank junk fees
This new California law builds on the Federal Trade Commission’s (FTC) recent rule targeting “junk fees,” taking a step further to protect consumers. Effective January 1, Assembly Bill 2017 prohibits state-regulated banks and credit unions from charging penalties when withdrawals are declined due to insufficient funds, such as at ATMs. This law is a significant win for Californians, especially financially vulnerable individuals who often face steep penalties—typically $30 or more—when funds fall short.
The bill addresses the issue of “fee creep” in the banking industry, with support from consumer advocacy groups like the California Low-Income Consumer Coalition. These new protections highlight California’s leadership in tackling unfair fees, offering residents meaningful financial relief and setting a strong precedent for other states to follow.
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Well Street
I wonder what the argument would be in support of these fees. Are they punitive measures to deter financial irresponsibility? Do banks and credit unions need the extra money to remain solvent?
California has its issues, but the governor signing these Senate and Assembly bills into law does right by the customers of these institutions. Bravo.
Evangel
What an outrageous fee!! Totally immoral. What right does any bank have to steal money from a patron? This is the most ignoble example of kicking someone when they're down. A big round of applause goes to those who passed this new California Law.