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U. S. Senate Gives Big Banks $21 Billion Gift from Consumers By Undoing Overdraft Rule By Charlene Crowell

 
 April 7, 2025 
 
Overdraft Rule Saves Billions Black Consumers Shopping Jan 1
(TriceEdneyWire.com) - While news headlines continue to focus on the chaos, confusion and legal challenges caused by the new administration’s recent changes, it could be easy to miss recent congressional actions that will cost consumers more than $5 billion annually in unnecessary and excessive bank overdraft fees  
On March 27, a 52-48 Senate roll call vote the Consumer Financial Protection Bureau (CFPB) overdraft rule was overturned. It would have lowered the typical cost of an overdraft fee at very large banks (with at least $10 billion in assets) from around $35 to $5. The measure now moves to the House of Representatives, where it is expected to soon pass, and then reach the president’s desk for final action.
South Carolina Senator Tim Scott, who chairs the chamber’s Committee on Banking, Housing and Urban Affairs, sponsored a Congressional Review Act resolution that only required a simple majority to pass. Should the House concur with a second majority vote, large lenders could charge fees much higher than the actual cost of an overdraft to the financial institution. Following the Senate vote, Scott claimed a consumer victory – despite a wealth of research that documents massive and negative financial impact to consumers paying excessive overdraft fees.  
“This overdraft conversation is a critically important conversation if you are like me, a guy who grew up in poverty, a single parent household, who understands the difficulty, the challenge, of single moms making those ends meet,” said Scott. “I want every single hardworking American to have access to our financial system.”   
But access on what terms?  
It is curious that Sen. Scott’s comments do not acknowledge how overdraft fees already disproportionately impact Black and Latino consumers.  
“Black and Latino consumers are already four to five times more likely to be unbanked than white Americans,” wrote the Center for Responsible Lending (CRL) in a comment letter supporting the overdraft rule. “They are also disproportionately likely to be ejected from the financial mainstream. Ejection from the mainstream financial system can have long-lasting and negative systemic effects.”  
CRL urged senators to vote for the interests of consumers, not the profits of large banks.
“This legislation, which should be called the ‘High Bank Fees Forever Act,’ would block the type of price cut that Americans have been clamoring for,” said Nadine Chabrier, senior policy counsel at CRL. “The measure would deny hundreds of dollars of relief each year from reaching families living paycheck-to-paycheck while letting huge financial institutions perpetually price gouge these families.” 
CFPB’s overdraft rule required bank fees to correspond with their actual costs and losses - instead of generating a revenue stream designed to boost bank profits. Also, by requiring bank account-opening disclosures, consumers would assured choices to compare offerings, and decide whether to pay overdraft fees automatically or manually.    
A near 300-member coalition of national and state advocates in civil rights, labor, religion, higher education, and other areas are working to raise awareness about the need to continue CFPB’s consumer protections.  
“The CFPB is an agency of the people. From the protection from junk fees, to fighting excessive overdraft fees, providing assistance to impacted victims of natural disasters, and holding predatory practices accountable, the NAACP stands firm in bringing back the CFPB,” said Keisha D. Bross, NAACP Director of Opportunity, Race, and Justice. "The NAACP will fight to hold financial entities responsible for the years of inequitable practices from big banks and lenders.” 
“It is shameful that Republicans are effectively writing bonus checks to executives at the nation’s largest banks while ordinary people struggle with high prices and increased costs of living,” added Lauren Saunders, the National Consumer Law Center’s associate director.  
“Banking charters were never supposed to be a license to rip people off, but unfortunately, many banks rely on gotcha penalty fees to pad their profits, effectively diminishing the difference between insured depositories and payday lenders,” noted Adam Rust, director of financial services for the Consumer Federation of America. “Reversing this rule is a gift to banks, and if the House goes forward with their version, it will harm people for decades to come.”   
As the measure advances to the House for further deliberation, California Congresswoman Maxine Waters, the Ranking Member of the House Financial Services Committee, posed an apt question to her colleagues:  
“Whether you like the CFPB or not, it doesn’t make any sense to hike bank fees on 23 million hard-working families,” said the longtime lawmaker, “Why do you want to force them to pay $5 billion in more fees every year? 
Charlene Crowell is a senior fellow with the Center for Responsible Lending. She can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it." data-linkindex="7">This email address is being protected from spambots. You need JavaScript enabled to view it..  

Overdose Death Rates Prompt Launch of 'You Can Save Lives' Campaign

April 3, 2025

tracie

Tracie Gardner, executive director, National Black Harm Reduction Network

NEW YORK, NY – In a drive to curb a decade-long rise in drug overdose deaths in Black populations, a “You Have the Power to Save Lives” campaign has been launched in seven U.S. cities, urging community leaders to collaborate with public, civic, clergy, and other local influencers to promote access to the lifesaving, overdose-reversing medication in their neighborhoods.  

The core message and call to action is for Black leaders and communities to talk about and carry naloxone, taking power into their own hands to save a life. A ZOOM press conference and rally was held today with media and community, civic, and government leaders from the target cities. A video of the press conference will be available after the event HERE.     

The campaign also released a report consolidating recent evidence that illustrates the need for urgent action to save lives, finding:  

Supported by public health organization Vital Strategies, with funding from the Elton John AIDS Foundation, the “You Have the Power to Save Lives” campaign includes more than a dozen community groups, health organizations, and local government agencies. Their efforts focus on establishing new naloxone distribution points in Black communities—including firehouses, neighborhood gathering spaces, and local health providers—to reduce the stigma around carrying naloxone and empower individuals to save lives in the event of an overdose. 

“We are cautiously optimistic about declining overdose death rates, but we also know that deep disparities remain and that progress against overdose has not included all communities,” emphasized Daliah Heller, Vice President for Overdose Prevention Initiatives at Vital Strategies. “The rising number of drug overdose deaths in many Black communities underscores the urgent need for strategies that help communities promote better health outcomes. Expanding the availability of naloxone is one of the strategies we consider a high priority.​​” ​  

M​a​rc Morial, President of the National Urban League, applauded the “You Have the Power to Save Lives” campaign, adding that naloxone access is critical to reducing overdose deaths. “We fight by passing this knowledge on. Too many people are gone, and too many families have been devastated. It must be stopped so our communities can thrive.” Morial said. “Let’s make friends and families aware that this life-saving medicine is available so we can save our loved ones.”  

Naloxone is a life-saving medication that reverses ​the effects of ​an ​opioid-related ​overdose within minutes​. Available over-the-counter as a nasal spray, naloxone is a safe and easy-to-use medication.  Opioids relieve pain by attaching to and activating specific receptors in the brain. Naloxone reverses opioid overdoses by blocking the receptors and preventing opioids from attaching. Naloxone ​can be purchased over the counter at pharmacies and is available for free through community distribution sites. It ​can be administered ​as​​​ a nasal spray without any specialized training.  

Data from the seven target locations demonstrates why naloxone is needed in these cities:  

ALBUQUERQUE: New Mexico's drug overdose death rate has been one of the highest in the nation for most of the last two decades. In Bernalillo County, there were 70.2 overdose deaths per 100,000 Black residents from 2017 to 2021, compared to 34.7 white overdose deaths per 100,000. Link: https://ibis.doh.nm.gov/indicator/view/DrugOverdoseDth.Cnty.RacEth.html  

DETROIT—In Michigan, the rate of overdose death was three times higher for Black individuals than for white individuals, and Black men and women were nearly half of the state’s overdose deaths, according to the Michigan Department of Health and Human Services. In 2023, one in five Michiganders lost to overdose lived in Wayne County, where the Black population dies from overdose at twice the rate of white residents. Link: https://www.michigan.gov/opioids/category-data   

DURHAM—In Durham County, Black people account for only one-third of the county's total population but nearly two-thirds of all overdose-related hospital admissions, according to 2024 data from the state's Department of Health and Human Services.  Link: https://drive.google.com/drive/folders/1kSGLLgnUKFTQHyqEk8pBoyyrXgn739lI  

LOUISVILLE— In Kentucky, overdose deaths increased by 12% in the Black population from 2021 to 2023 while decreasing by 11% in the white population over the same period. Overdose fatalities in 2023 were 50% higher for Kentucky's Black population than for the white population. Link: https://governor.ky.gov/attachments/2023-Drug-Overdose-Fatality-Report.pdf  

MILWAUKEE— Death rates among Milwaukee's Black community saw an overall decline in 2024 but remained twice as high as death rates among white Milwaukeeans, according to city data.  Black Milwaukeeans accounted for 42% of all overdose deaths in Milwaukee County despite being only 27% of the county population.  

Link: https://county.milwaukee.gov/EN/Strategy-Budget-and-Performance/Vision/Strategy-Dashboard/Overdose-Data 

NEWARK— Black residents accounted for more than 60% of all overdose deaths in Essex County in 2023. The rate of overdose death was three times higher among the Black population in the county than the white population. Link: https://www.nj.gov/health/populationhealth/opioid/sudors.shtml  

PHILADELPHIA— In Philadelphia, the rate of overdose deaths in the Black population was almost twice the rate in the white population in 2023. Further, the rates of overdose death in North and West Philadelphia, both Black neighborhoods, are among the highest in the city, according to the Philadelphia Department of Public Health. Link: https://philadelphiapublichealth.shinyapps.io/philastats/  

Tracie M. Gardner, Executive Director of the National Black Harm Reduction Network,​ said that the​​ “You Have the Power to Save Lives” campaign​ is urgently needed to ​be widely utilized by community and grassroots leaders to curtail overdose deaths.  

“To bring persistently high overdose rates in​​ Black populations down, we can draw upon the strengths, values, and beliefs within our communities,” maintained Gardner, whose organization is a key partner in the campaign. "One of the legacies of the war on drugs is stigma and mistrust. We’re proud that the campaign is built in partnership with Black community champions and will reach into communities through talk shows, community newspapers, church bulletins, and neighborhood hubs to promote lifesaving naloxone.”  

Kimberly Douglas, a mother from Bowie, Maryland, whose son died from a drug overdose, is a strong advocate for the campaign. “Nearly two years ago, I lost my 17-year-old son, Bryce, to a drug overdose. Now, I search for other mothers who have lost their children.

Talking helps relieve the hollowness left by this loss. But it’s difficult to find other Black mothers willing to acknowledge and share their grief. Black women are celebrated for our resilience, strength, and ability to overcome adversity. But this has been a lonely journey for me.” 

Douglas started a Facebook group, Black Moms Against Overdose, seeking a safe place for Black families whose loved ones overdosed.  

“I am participating in this campaign by Vital Strategies to urgently increase awareness of the need to make naloxone, the life-saving medication, more accessible in Black communities,” Douglas said. “At the core of this campaign are personal stories, like mine, of individuals directly affected by overdose deaths.  We can make a difference. Bryce will not walk through my front door again, but we can ensure that more sons and daughters make it home.” 

Go to YouCanSaveLives.org for more information about the “You Have the Power to Save Lives” campaign and how you can get involved. 

About Vital Strategies: 

Vital Strategies is a global health organization that believes every person should be protected by a strong public health system. Our overdose prevention program works to strengthen and scale evidence-based, data-driven policies and interventions to create equitable and sustainable reductions in overdose deaths in several U.S. states and local jurisdictions. 

About the National Black Harm Reduction Network​: 

The National Black Harm Reduction Network is dedicated to advancing harm reduction principles that optimize health and wellness for Black people who are disproportionately harmed by public health initiatives, the criminal legal system, and drug policies. Learn more here.  

Former NBA Star and Civil Rights Activist Says Justin Baldoni Blocked Documentary by Michael Graham

Jan. 24, 2025

 
 
Baldoni
Justin Baldoni
 
(TriceEdneyWire.com) - Long before actress Blake Lively publicly accused him of attempting to silence her about his problematic on-set behavior, actor Justin Baldoni and his production company, Wayfarer, were silencing a Black activist and former NBA star who wanted to tell his story.
 

Baldoni and Lively, who starred in the film “It Ends With Us,” have been making headlines for weeks, publicly battling over their private reputations. Lively’s lawyers say Baldoni and his Wayfarer team used a media smear campaign hoping to “safeguard against the risk of Ms. Lively ever revealing the truth about Mr. Baldoni.”

The actor responded with a $400 million lawsuit against Lively and her husband, Ryan Reynolds.

In the case of legendary Chicago Bulls three-point shooter Craig Hodges, it was his truth, he says, that Baldoni and Wayfarer silenced.

 

To basketball fans, Hodges is the dazzling outside shooter who helped the Bulls win back-to-back championships during the Michael Jordan era and still holds the record for most consecutive shots made (19) in the NBA’s Three-Point contest.

For civil rights activists from the past 30 years, however, Hodges is known as something bigger: One of the few athletes of the previous era willing to use his talent and fame to promote social justice.

They know Hodges as the NBA star who showed up in a dashiki for the 1992 White House celebration of the Bulls’ championship season. While he was there, Hodges gave President George H.W. Bush a handwritten letter criticizing the administration’s treatment of minorities and the poor.

It’s one of the stories featured in Hodges’ 2017 autobiography, “Long Shot: The Triumphs and Struggles of an NBA Freedom Fighter.” His book caught Hollywood’s eye after the massive success of ESPN’s 2020 hit documentary series "The Last Dance,” a retrospective on the Bulls’ basketball dynasty.

Hodges struck a TV deal with Wayfarer — a production company run by Baldoni and tech billionaire Steve Sarowitz — for a project looking back at that Bulls era through the lens of Hodges’ experiences.

For Hodges, it was an opportunity to tell his story as laid out in his book. “I don’t feel like it’s just a story for the NBA or for Black people. I feel like it’s a story for everyone,” Hodges told InsideSources.

Hodges has long maintained that he was blackballed by the NBA for his political activism. After his White House appearance, the Bulls waived his contract for the next season, and no other NBA team picked him up. Despite his success, Hodges’ career was over.

“This is a game that you’ve been playing on a competitive level since you were 12 years old,” Hodges has said of his situation. “And now you’re 32 years of age, you’re in excellent shape. You just won these championships. You’re the best shooter on the planet … and it’s a game that is about putting the ball in the basket. And you can’t get an agent?”

Hodges thought he had a story to tell, and Jivi Singh — a British-Indian producer who read the NBA star’s book and fell in love with the story — wanted to tell it.

“I think it was the day after the book was released, we read an article in The Guardian, I hit my partners and said, ‘Hey, check this out.’ We ordered the book and within 24 hours (of reading it), we were on a call with Hodges,” Singh recounted.

He and Hodges began putting a movie together under working titles like “Whiteballed” and “The Lost Dance.”

Enter Baldoni and Wayfarer.

While Baldoni and Wayfarer CEO Jamey Heath liked Hodges’ story, they disapproved of the director he chose to tell it. And, Hodges and Singh told InsideSources, they were stunned when they heard the reason.

Singh is racially suspect.

The two recounted a Zoom call for InsideSources in which the Wayfarer executives critiqued Singh’s racial qualifications.

“I promise you that as much as I feel you feel, no one knows (Hodges’ life) better, no one knows it better than me,” Heath, who is Black, told Singh. “You might be a wonderful filmmaker, but the story is something that there might be some blind spots for you.”

Baldoni added: “We, as people who are not Black, can never put the emphasis on the Black people to tell us and teach us.”

(The Zoom call and its content have previously been reported by Deadline, which reviewed the audio.)

Hodges told InsideSources he was approached by Heath, who, he said, played the race card against Singh.

“He comes to me on the ‘Brotherhood’ level, and I’m laughing because I’m like, ‘Dude I don’t even know you.’”

“And y’all coming at it from a standpoint of (Singh) is not Black enough?” Hodges added.

Asked for a comment, Wayfarer sent InsideSources a previously released statement from Heath.

“The Craig Hodges story is one we at Wayfarer, and in particular myself, care a great deal about: a Black man being denied the opportunity to professionally practice his craft all because he wanted to highlight what was happening to Black people in America in the 1980s and ’90s,” Heath said.

“While all stories involving Black people don’t need to be told by a Black person, some do indeed require someone that has lived the experience, which is something Justin Baldoni understood and expressed vocally to those involved,” Heath added.

Ironically, Singh noted afterward that the director Baldoni and Heath wanted to replace him with “was a man of Jamaican descent who grew up in Jamaica.”

Singh said he was willing to step aside as the director, but he wasn’t willing to let the truth of Hodges’ life get lost in the telling.

“The film’s called ‘White Balled,’ which means to silence Black people for political reasons. The simple premise of this film is that Craig Hodges is a man who had been silenced. And this film is the vehicle that would give him his voice back.”

Because that voice could sometimes sound critical of the NBA or Michael Jordan, it wasn’t the story Wayfarer wanted, Singh said.

For Hodges, it’s about staying true to the story he wrote in his autobiography.

“When I talked to the new director, the first thing I asked him: ‘Have you read my book?’ And he said ‘No,’” Hodges recalled.

That outraged Hodges, who was trying to tell Baldoni that he trusted Singh with his story.

Baldoni and Wayfarer eventually pulled their support from the project, though they still hold the rights. They want Hodges to pay $175,000 to get the rights to his own story back. Hodges says it’s his life, and, as a Black man, he rejects the idea that others should determine who he can choose to tell his story — particularly when the judgment is based on race.

Others agree.

“From producing to directing to deciding on creative vision to upholding a project’s ultimate vision, Black and Brown people in Hollywood are consistently being overruled and written out of the process — with implications for us all, as who shapes and guides stories can fundamentally alter the end results and the way important stories are told,” said Ricky Clemons, an adjunct lecturer teaching sports management and media at Howard University.

Singh told InsideSources he’s still shocked by Baldoni and Heath’s stance on this project.

“It’s the hypocrisy of a man who thinks it’s OK to tell a man of color that he can’t tell a story of color, but it’s OK for him (Baldoni) to tell a story of a female victim of domestic violence, right?” Singh said. “That hypocrisy really struck a chord, and it’s kind of jarring.”

Meanwhile, Hodges rejects the premise that his story is somehow critical of the NBA or Jordan, or that his life of political activism is a tale too troublesome to tell. He’s shown a rough cut of the film he and Singh have put together to about 100 people, and he says the response has all been positive.

“Everybody who sees it — Horace Grant, John Paxton, all of them — they all say the same thing: ‘When is it coming out?’

“There’s no reason why I shouldn’t be out. It would be great.”

Michael Graham is Managing Editor at InsideSources.com, which was the first to publish this article.

President Trump Promises to Promote Peace While Pardoning Those Who Promoted Pain By Hazel Trice Edney

Jan. 21, 2025

Trump Swearing in

President Donald Trump Sworn in by Chief Justice John Roberts. PHOTO: Screenshot

(TriceEdneyWire.com) - President Donald J. Trump, promising in his inaugural address to use his power to “bring a new spirit of unity to a world that has been angry, violent, and totally unpredictable”, has rewarded hundreds of violent Jan. 6 insurrectionists with full pardons and release from prisons despite many of their pleas of guilt.

Approximately 1,500 of the predominately White crowd, several of whom beat police officers with the United States flag, sprayed them with chemicals, and threatened to hang Vice President Mike Pence, are going free this week with no chance of further punishment for attempting to stop the certification of President Joe Biden on Jan. 6, 2021. Yet, Trump has repeated called the Jan. 6 insurrection a "day of love."

Many of those who protested that day were led by the Proud Boys and the Oath Keepers, both known as far-right militant organizations. Proud Boys leader, Enrique Tarrio, who had begun his sentence of 22 years and Stewart Rhodes, founder of the Oath Keepers, had begun an 18-year sentence are now free after Trump’s pardons. They had been convicted of seditious conspiracy. 

Ironically, Trump's inaugural address had spoken of glorious days to come for the nation. "We will move with purpose and speed to bring back hope, prosperity, safety, and peace for citizens of every race, religion, color, and creed," he said. 

Despite Trump’s sweeping pardons of the Capitol attackers, there has never been an apology from him for his recently continued and repeated false accusations against the Central Park 5 who were found completely innocent of a Central Park jogger 36 years ago. Nor has he apologized for falsely accusing Haitian people of eating dogs and cats of their Ohio neighbors and the string of other lies against people of color.

Remarkably, Trump’s inauguration, which appeared to have gone smoothly Jan. 20, complete with an indoor U. S. Capitol swearing in ceremony due to the cold, an indoor parade at the Capital One Arena and three inaugural balls, were all undermined by what appeared to be continued lies, insults and not one good word about Biden; nor Vice President Kamala Harris, who Trump handily defeated.

“From this day forward, our country will flourish and be respected again all over the world.  We will be the envy of every nation, and we will not allow ourselves to be taken advantage of any longer.  During every single day of the Trump administration, I will, very simply, put America first,” Trump said in his inaugural address in front of members of Congress, the U. S. Supreme Court and Presidents Biden, Obama, Bush, Clinton, Vice President Harris and even former Vice President Pence.

“Our sovereignty will be reclaimed.  Our safety will be restored.  The scales of justice will be rebalanced.  The vicious, violent, and unfair weaponization of the Justice Department and our government will end,” Trump said to applause. He did not mention the pending pardons during his official inaugural address.

But only a few hours later, he announced the more than a thousand pardons of what he called, “J-6 hostages.” In campaign promises along the trail over the past months, Trump had promised there would be pardons of those convicted of crimes on Jan. 6. But even his Republican supporters did not expect him to release violent offenders that led to the wounding of more than 140 police officers, the deaths of six others and millions of dollars in damages to the Capitol building.

“If you committed violence on that day, obviously you shouldn’t be pardoned,” then Vice President-elect Vance said in front of cameras only days before the inauguration. Republican Speaker Mike Johnson agreed that he thought Trump was not promising sweeping pardons. On Tuesday, he told Politico that he had not yet seen the list and would be reviewing it.

“Full pardons. Full pardons,” Trump said repeatedly as he signed the executive orders. He said only about six would receive clemency, which means their slates are not wiped cleaned, but their sentences would end or be significantly reduced.

Trump supporters have argued that Biden’s pardons of his son, Hunter, weeks ago as well as his pardon of members of his entire family within the last few minutes of his tenure as president may have prompted Trump to release the Jan. 6 convicts. But others argue that Trump likely knew exactly what he was going to do and, besides, Biden’s family members were not violent.

Another executive order issued by Trump includes ending (DEI) Diversity, Equity and Inclusion in the federal government. “The injection of “diversity, equity, and inclusion” (DEI) into our institutions has corrupted them by replacing hard work, merit, and equality with a divisive and dangerous preferential hierarchy,” said a statement on White House.gov.

Also birthright citizenship is being challenged by the Trump administration, declaring that a child born in the U. S. to a non-citizen should not automatically become a citizen. Civil Rights organizations, including the American Civil Liberties Union, have already filed legal action against that one.

Trump’s unexpected move to give the 1,500 pardons indicates an administration of unpredictable actions. It is yet to be fully determined what Trump means by his repeated refrain, mentioned again in his inaugural address, “The golden age of America begins right now.”

New CFPB Overdraft Rule Could Save Consumers $5B Each Year By Charlene Crowell

 
January 21, 2025
 
CFPB Rule
(TriceEdneyWire.com) - On December 11, an important but under-reported U.S. Senate hearing addressed the nation’s challenging economy.
After calling to order the session entitled, Protecting Workers’ Money and Fighting for the Dignity of Work, long-time Ohio Senator Sherrod Brown, who for a full decade served as either the Banking Committee’s Chair or Ranking Member, spoke to the financial concerns of everyday people just days before his tenure ended.  
“Most people don’t have fancy lawyers,” noted Brown. “They don’t have high-priced lobbyists. The Consumer Financial Protection Bureau (CFPB) is their advocate and their voice. … OUR charge, whether in the Senate or out of it, is to look out for workers and put them at the center of everything we do.”
And in both significant and measurable ways, the CFPB has met its mission by returning nearly $21 billion to more than 205 million consumers who were financially abused in a wide range of personal finance issues. For example: 
  • Detrimental medical debt collection has now been removed from the credit reports of 22.8 million people who previously had at least one such debt;
  • CFPB stopped illegal credit repair scams and returned $1.8 billion to 4.3 million consumers harmed by credit repair companies that illegally charged advance fees and used deceptive bait-and-switch advertising tactics; and
  • Through 39 public enforcement actions, including six Military Lending Act violations, CFPB returned $363 million to veterans and service members. 
Beyond these and other enforcement actions, CFPB has promulgated key rules governing personal financial transaction that together provide clarity and transparency for financial firms and consumers alike.
Unfortunately, and despite notable achievements, the agency remains as contentious a topic today as when it began in 2011. And with a new Congress and President in 2025, consumers and their advocates would be prudent to remain watchful.
In particular, a new rule that brings the potential to save consumers $5 billion each year may be at risk. Previously, overdraft fees ranged as high as $35 per transaction, with affected consumers learning of the charges after receiving their monthly bank statements. Those hardest hit with these predatory fees are consumers whose bank balances provide slim to no financial cushion – the millions who work paycheck to paycheck and may be aptly described as ‘the working poor’.
Finalized in December and scheduled to take effect this October, CFPB’s overdraft fee rule closes a bank overdraft loophole that had been allowing financial institutions to unfairly charge billions in excessive fees. Financial institutions with assets of $10 billion or more will now be required to comply. Those that wish to offer overdraft as a convenient service would be allowed to set their fee at an amount that covers their costs and losses - instead of generating a revenue stream designed to boost profits. Additionally, the rule calls for account-opening disclosures that enable comparison shopping, and give consumers a choice of whether to pay automatically or manually.
Earlier and in multiple, related overdraft enforcement actions, CFPB returned a combined total of $446 million from institutions found to have charged their respective customers with illegal fees: Wells Fargo ($205 million), Regions Bank ($141 million), Navy Federal Credit Union ($95 million), and Atlantic Union ($5 million). 
"For far too long, the largest banks have exploited a legal loophole that has drained billions of dollars from Americans' deposit accounts," said CFPB Director Rohit Chopra. "The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they're charging on overdraft loans."
In a comment letter that earlier urged enactment of overdraft reform, the Center for Responsible Lending noted this predatory loan’s disproportionate impact on Black and Latino consumers.
“[O] verdraft fees continue to be a major reason why consumers lose bank accounts. Black and Latino consumers are already four to five times more likely to be unbanked than white Americans, wrote CRL.  “They are also disproportionately likely to be ejected from the financial mainstream. Ejection from the mainstream financial system can have long lasting and negative systemic effects. The Proposed Rule has the opportunity to save at least $3.5 Billion for the 23 million consumers who pay overdraft fees yearly.”
Perhaps, Senator Brown summarized best the consumer challenge before us.
“As important and effective as Wall Street reform was, it was incomplete. We still have an economy where hard work doesn’t pay off like it should… And over the next four years, the work of the Consumer Financial Protection Bureau will be more crucial than ever. The work continues.”
Charlene Crowell is a senior fellow with the Center for Responsible Lending. She can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it." 
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