While the fight continues for the restoration of key rights for those impacted by the criminal legal system, an often overlooked right does exist and yet is often not exercised among directly impacted citizens: their right as a consumer. Overdraft fees and junk fees with large financial institutions and administrative fees related to banking and paycheck advances in entry level employment settings each bring with them destabilizing amounts of cost to directly impacted consumers trying to re-establish and secure their own economic mobility. Since its inception in 2011, the CFPB has worked tirelessly to create accountability and accessibility for all consumers.
Promoting Financial Literacy
As part of a series of financial education resources published by the CFPB, “Your Money, Your Goals: Focus on Reentry: Criminal Justice” has served practitioners, families, and individuals reentering with a multi-pronged approach to preparing for the true “cost” of reentry. Inclusive of many ongoing themes elevated as critical aspects of reintegration, including budgeting, correcting consumer reports, and accessing vital identification documents, the Bureau’s guide serves as a way for consumers of all kinds.
Opportunity Creation through Rulemaking
The CFPB’s rule lowering overdraft fees to $5 is a critical step in reducing the financial burden on vulnerable populations, including those re-entering society after incarceration. For individuals already facing financial instability—due to various collateral consequences—high overdraft fees are a major driver of economic insecurity. These fees not only exacerbate poverty but also push people out of the banking system, a phenomenon known as debanking that is growing more and more prevalent each day. Without access to basic banking services, individuals are forced into predatory financial products, like payday loans and check-cashing services, which further entrench them in debt.
By reducing fees, the CFPB has taken a meaningful step toward preventing this cycle of exclusion. Lower fees allow individuals to maintain access to mainstream financial services, making it easier for them to build credit, receive wages, and pay bills. This is especially critical for individuals re-entering society, as maintaining access to a bank account is essential for reintegration and long-term stability – both of which lead to decreases in recidivism.
Modeling Authentic Engagement
JustLeadershipUSA and our policy table, the JustUS Coordinating Council, are dedicated to creating authentic engagement between policymakers and those impacted by the criminal legal system. Through strategic engagements hosted by the Bureau, the voices of consumers with lived experience in the criminal legal system have informed both enforcement and user experience policy. These conversations have also highlighted CFPB actions related to carceral corporations including JPay in 2021 and Global Tel Link in 2024 – each putting millions of dollars back into the pockets of our impacted communities. Finally, in a report issued at the beginning of the Biden Administration, the Bureau outlined numerous consumer pitfalls throughout the criminal legal system. Each of these efforts have been intentional and are all indicative of the Bureau’s commitment to protecting economic mobility.
JLUSA and the JustUS Coordinating Council applaud and appreciate the work of the Consumer Financial Protection Bureau as they continue seeking consumer justice for ALL of us.