Listen On:
Key Takeaways:
- [01:03] This rule (CFPB Overdraft Rule) only applies to financial institutions that are over 10 billion dollars so that is not most credit unions. It doesn’t take effect until October 1, 2025, at the earliest.
- [04:24] It could be many years before or even if an overdraft rule becomes final. So, most credit unions are in a wait and see mode for the most part.
- [07:44] Alternative data can improve the speed and accuracy of credit decisions and help firms evaluate the creditworthiness of consumers who may not be able to obtain credit in the mainstream banking system.
- [19:16] High-income people who generally make 70,000 dollars or more are paying 80% more in overdraft fees than low-income people.