How to Manage Overdraft with a Fairness First Approach

About the Podcast

In this podcast, we talk with Christopher Leonard, Chief Executive Officer at Velocity Solutions. This informative session covers the CFPB's overdraft rule, components of a fair overdraft program, and the future of overdraft.

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Preferred partner
Velocity Solutions
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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. 

Presented By

Christopher Leonard
Christopher Leonard

Chief Executive Officer | Velocity Solutions

Christopher Leonard serves as Chief Executive Officer of Velocity Solutions. Before becoming CEO in 2015, Christopher served as President of the company from 2012 to 2014, and previously as Chief Operating Officer & General Counsel from 2005 to 2011. Prior to joining the company in 2005, Christopher was a partner in one of North Carolina's top law firms. He remains a licensed attorney today.

Christopher's deep consumer financial services regulatory experience spans over 20 years. He has been a valuable resource to community banks and credit unions on tough issues, wiling to dive into the trenches and help engineer real solutions for those institutions.

Velocity Solutions
Velocity Solutions is the NAFCU Services Preferred Partner for Account Holder Premium Card Rewards Program and Overdraft Management Solutions.

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