Client monetary safety was a joke beneath Trump. Rohit Chopra might flip it round in a giant method

Under Chopra, strong action on student loans would be a given. But there are so many other things the CFPB could do that would really help the people – we’re finally talking about an agency that took fines and $ 12 billion from consumers under Obama, then between 2018 (1.4) to decrease to 1.4 billion US dollars Kraninger took over) and November 2020.

The coronavirus pandemic is also creating many consumers in need of protection from financial institutions, and one of the big things Chopra could focus on would be bank overdrafts, which was a booming business for banks during periods of high unemployment. Federal regulators have urged banks to waive overdraft fees during the pandemic. Instead, they made the banks $ 30 billion in 2020, with the average overdraft fee breaking a new record at $ 33.47. So, if you didn’t have money in your account to pay a scheduled bill, or if you write a rental check for slightly more than your account, you may be charged an amount of $ 35 that the bank doesn’t know 100% about . Many of these charges are triggered by debit card transactions for less than $ 25 that are repaid within three days.

About every third checking account has at least one overdraft per year, and 5% of checking account holders have 20 or more overdrafts per year. This has intensified in the pandemic with the associated economic hardship. People have even seen stimulus checks deposited and completely eaten up thanks to overdrafts on checking accounts with negative balances. Some banks have zeroed negative balances long enough for people to get their stimulus checks, but not all.

The Consumer Financial Protection Bureau could do something about predatory overdrafts, including ridiculously high fees. This is particularly critical during the pandemic. A survey found 79% support for eliminating overdraft fees during this crisis. Sens. Cory Booker and Sherrod Brown have already proposed laws to combat overdraft fees during the COVID-19 emergency, ban them altogether for the duration of the emergency, and prevent banks from reporting overdrafts to credit bureaus.

But regardless of the pandemic, the CFPB could and should strengthen overdraft protection, including a strict opt-in rule for overdrafts. Many people would rather decline a transaction than get their cup of coffee and then be charged a fee of $ 35 for it – and aside from “practices that increase overdraft fees, including booking transactions in order from highest to lowest the charging of fees for transactions approved for available funds ”.

There are so many things that a strong government can do for the people. It’s time to get down to work and show people the benefits of it.