California Gov. Gavin Newsom has signed legislation covering a range of consumer protection issues. The bills aim to “strengthen protections for consumers, addressing issues that have put financial strain on Californians while setting new standards for transparency and accountability across industries.”
The legislative package includes the following bills:
- AB 2017 prohibits state-chartered banks and credit unions from charging nonsufficient funds fees when a transaction is declined instantaneously or near instantaneously for insufficient funds.
- SB 1075 prohibits credit unions 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. The bill also requires a notice to the consumer in the event such a fee is charged.
- SB 1061 prohibits medical debt from being listed on consumers’ credit reports. That, the governor said, is intended to ensure that people are not penalized for the high costs of necessary healthcare. That bill also prohibits using any medical debt listed on a credit report as a negative factor when making credit decisions.
- AB 2863 requires companies offering automatic renewals and continuous services to provide consumers a means to cancel the subscription using the same medium they used to sign up. For instance, a person who subscribes online must be given an online click-to-cancel option, according to the governor’s office.