FORT LAUDERDALE, Fla. – December 16, 2021. Velocity Solutions CEO Christopher Leonard has authored an article with his unique perspective on the recent deluge of industry coverage around overdraft protection and its associated fees. Leonard’s response is based on his experience of having worked with hundreds of financial institutions on responsible consumer liquidity solutions for tens of millions of Americans.

“Pundits prognosticate on how overdraft is going away, and create the impression that all consumers detest overdraft and want the service to end,” said Leonard.  “While changes may occur, I’m here to say that overdraft is not over.”

Some of the highlights from Leonard’s article:

  • Overdraft is valued by consumers, and the CFPB’s own data shows that complaints about overdrafts are rare.
  • Despite the headlines, the typical overdraft transaction isn’t a $35 fee for a very small purchase.
  • Survey data shows that about half of Americans think overdraft fees are fair.
  • Community banks and credit unions provide billions of dollars in liquidity to consumers that ultimately flows to mom-and-pop businesses in small-town America, communities that many megabanks have abandoned.
  • Many financial institutions now use overdraft systems that set individual overdraft limits based on ability to repay, addressing overuse by lower-income consumers.
  • Without access to overdraft coverage, many consumers will resort to payday lenders for short-term liquidity or other options outside the banking system.
  • All five primary federal regulators have encouraged institutions to offer small-dollar short-term loans, a responsible and affordable alternative to overdraft for American consumers.

Read the complete article here.

Learn more on this topic at one of the 2022 Velocity Executive Summits. Velocity CEO Christopher Leonard will cover the latest overdraft news and developments, along with providing his unique perspective on the topic. Learn more:

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About Velocity Solutions, LLC

Founded in 1995 and servicing the transaction accounts of over 30 million consumers and business owners, Velocity Solutions is the leading provider of revenue-driving solutions for community banks and credit unions. Our Velocity Intelligent Platform® powers all of Velocity’s solutions, using machine-led intelligence that delivers powerful analytics and drives revenue, loans, account holder engagement and non-interest income to our client financial institutions. For more information, please visit