Aiexpress – Wednesday brings a lot of new rules, and one of them might have an effect on your wallet.
The law says that state-chartered banks can’t charge fees for withdrawals that are turned down right away, even if there aren’t enough funds in the account. It includes banks that are controlled by the state of California. These are usually smaller banks. You can find a list here.
Another bill, SB-1075, will only allow credit unions to charge $14 for overdraft fees due to not having enough funds. It will go into effect on January 1, 2026.
Some experts think the steps will have a big effect.
UC San Diego economics expert Dr. Alan Gin said, “If you get hit with a fee for overdrawing your account of $30 or more, that’s a big deal, especially for people who don’t already have a lot of money in their bank accounts.”
A lot of people in California are thinking about the pros and cons of the measures.
American Krista Chriscoe said, “It’s good for the people, but you don’t want to see people start to abuse that.” “Isn’t that expensive for the banks if the people are continuously over drafting their accounts at a cheaper rate?”
The Consumer Financial Protection Bureau says that in 2023, people paid almost $6 billion in overdraft fees.
