NCL offers support for the Domain Reform for Unlawful Drug Sellers (DRUGS) Act

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January 31, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC – The National Consumers League is pleased to support the Domain Reform for Unlawful Drug Sellers (DRUGS) Act (HR 6352), which was introduced on January 7, 2022 by U.S. Representatives Bobby L. Rush (D-Ill.) and David B. McKinley, P.E. (R-W.Va.). The Senate equivalent (S. 3399)was introduced by Senators Marco Rubio (R-Fla.) and Amy Klobuchar (D-Minn.). This legislation aims to create a program that holds internet registries and registrars responsible for illegitimate drugs being sold on their online platforms.

“People of all ages have been affected by the sale of illegitimate drugs on the internet. This issue needs a targeted intervention to avoid further harm and death that results from this problem. Requiring online platforms to take action when they are notified of illegal activity on their domains will help to reduce the number of domains selling illegitimate drugs,” said NCL’s Director of Health Policy Jeanette Contreras.

The DRUGS Act would require internet registries to take immediate action when they receive notice from “trusted notifiers” that one of their domain names is being used to sell drugs illegally online. Agencies that are considered “trusted notifiers” include the Food and Drug Administration (FDA), the Department of Justice (DOJ), the Department of Homeland Security (DHS), State Attorneys General, and State Boards of Pharmacy, among others. After receiving a notice, the online platforms would have to suspend the domain from operating, to allow for an investigation before resuming online sales. The domains would have the option to appeal, by providing evidence of lawful operation.  

This legislation is a monumental step in ensuring that online platforms are held accountable for allowing illegal online pharmacies to be created, and shutting down those that already exist and operate. The DRUGS Act is modeled on a successful FDA pilot program, which resulted in the takedown of nearly 30 domain names used to offer illegal opioids online in 2020.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Airline executive testimony conflicts with travelers’ reality

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By Eden Iscil, Public Policy Associate

Last month, the Senate Committee on Commerce, Science, and Transportation held a hearing titled “Oversight of the U.S. Airline Industry,” which featured the CEOs of the major domestic airlines (American, Delta, Southwest, and United). With the federal government’s $50 billion bailout of the aviation industry serving as the primary focus of the hearing, airline CEOs managed to avoid serious scrutiny despite the massive service failures seen in 2021 and early 2022.  

The underlying problem centers around the air traffic companies choosing to incentivize employees to leave their jobs, despite receiving billions of dollars in assistance from the federal government with the primary condition being not to fire workers. The bailout, officially known as the Payroll Support Program, served as an undeniably central piece to America’s quick economic rebound from the early COVID-19 recession. Yet, airlines still could not service hundreds of thousands of flights over the past seven months due to a lack of staffing. This caused a meltdown of delays and cancellations in the summer and early fall of 2021 and again during the end-of-year holidays over the previous two weeks. 

While certain conditions understandably contributed to flight schedule changes, such as the Omicron variant, the airlines’ lack of preparation remains a consistent problem. For example, in October 2021, Southwest Airlines cancelled more than 2,000 flights, blaming weather and FAA issues. But these excuses do not hold water, as consumers quickly pointed out that while Southwest cancelled 28 percent of its schedule, competitors only cancelled around 3 percent of their flights. A couple weeks later, CEO Gary Kelly acknowledged staffing shortages that had led to Southwest’s service problems. 

The reality travelers have faced does not match the rosy picture airline executives painted at the Senate hearing. Southwest’s Kelly expressed pride in not cutting hours or laying off employees throughout the pandemic. Yet, his airline was still understaffed at the end of October (according to Southwest’s own hiring goals) after the airline reduced its workforce by 28 percent at the onset of the pandemic. To get around the prohibition on involuntary firing, air traffic carriers like Southwest incentivized early retirement and extended time off packages. The results of these practices are visible in every major airport nationwide. 

Additionally, American Airlines CEO Doug Parker told senators that “large events” of cancellations “don’t happen very often” and that a shortage of employees is not a problem. Just a week later, airlines began experiencing staffing troubles, which led to more than 18,000 flight cancellations between Christmas Eve and January 3. Given the predictable spike in COVID infections we have seen during periods of high travel for almost two years, especially during the winter holidays, it is unclear why airlines were entirely unprepared for the latest holiday traffic.  

To be clear, employees absolutely should not report to work when they are ill (hopefully by taking paid sick leave). Given the record-breaking transmissibility of the Omicron variant, workers’ safety needs to remain paramount. It is unfortunate that airlines did not take steps to rectify previous mistakes and increase staffing ahead of the winter travel season in order to avoid the enormous wave of cancellations. In addition to the headaches and last-minute adjustments stranded travelers needed to make, the service failures were especially impactful as this was the first holiday season for many people to enjoy with loved-ones since before the pandemic.

NEW RESEARCH: CBD companies exploiting academic partnerships for marketing purposes

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January 20, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The Journal of Studies on Alcohol and Drugs today released new research that reveals the various tactics cannabidiol (CBD) companies use to thwart the Food and Drug Administration (FDA) review process and assert that their therapeutical claims are backed by science.

The study, The Use of Academic Research in Medical-Cannabis Marketing: A Qualitative and Quantitative Review, illuminates the need for FDA regulatory approval and stronger oversight to address the risks to consumers and patients alike when companies exploit that system. The findings reveal nearly 1,000 health claims touting CBD’s ability to mitigate symptoms or treat mental health, autism, pain, sexual health, AIDS, cancer, COVID-19, and more, providing just a snapshot of the current, unregulated marketing tactics being used to mislead the public.

The research was commissioned by Consumers for Safe CBD, a campaign spearheaded by the National Consumers League and conducted by Data Science Solutions. The research took place in the summer of 2020 and was published today in the Journal.

“It’s important that consumers understand what they’re up against when it comes to the current marketplace,” said Sally Greenberg, Executive Director of the National Consumers League. “Day in and day out we see CBD products promoted by celebrities and ‘health experts’ who have no clue what is truly in the products they push. This research helps give a snapshot of just how many misleading claims are out there and will help consumers better understand how to identify — and know to question — marketing red flags.”

“Unfortunately, many CBD manufacturers talk quite a bit about research, but have rarely engaged in the kind of large-scale randomized controlled trials necessary to establish that a drug is safe and effective,” said Theo Caputi, M.P.H, M.SC. author of the study. “CBD products are flooding the retail marketplace — readily available to consumers — and this review shows a serious need for adequate research and testing to ensure safety of these products and effectiveness for the claims companies are making.”

Most of the top medical marijuana companies analyzed:

  • use the existence of academic partnerships and observational relationships in an effort to legitimize health claims, despite having little to no clinical trial activity;
  • routinely use academic research in marketing strategies (“research as marketing”) to mislead the public; and,
  • evade FDA approval process by creating their own pseudo-approval process, making products appear legitimate, safe, effective, and eligible for insurance coverage for a range of health claims through these “research as marketing” tactics.

“It is alarming to see so many companies purposefully evading the FDA process — the gold standard in consumer protection — and making therapeutic claims with little to no real, clinical evidence,” said Greenberg. “Many of these companies have received warning letters from the FDA, yet these harmful and misleading tactics continue. It’s time for Congress to empower FDA to use its full authority to protect consumers. Consumers for Safe CBD will continue to serve as a watchdog to ensure CBD products are safe and effective.”

The CBD market continues to grow despite the FDA stating that CBD cannot be generally regarded as safe (GRAS) for use in food and beverage products. According to a Statista report, CBD sales in the U.S. reached $4.6 billion in 2020. By 2026, the market is expected to grow to $16 billion. Consumers, through these “research as marketing” tactics, have been led to believe that CBD has both medical benefits and health maintenance effects. However, there is only thorough, scientific-backed proof of medical benefits in the one and only FDA-approved CBD prescription drug product available.

“It is arguably unethical and certainly misleading for commercial entities to use the legitimacy of early scientific research — and the announcement of such endeavors — as a marketing tool,” Caputi added, “In fact, this ‘research’ used — or even simply announced in press releases — is not nearly substantial enough to ensure safety and effectiveness of these products for therapeutic use. We must rely on the rigorous FDA approval process to be sure these products meet the gold standard for safety and efficacy.”

Click HERE to read the full study in the Journal of Studies on Alcohol and Drugs.

To  learn more about the risks of unregulated CBD, visit 4safecbd.org.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL applauds decisive action by CFPB against fraudulent payments processor

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January 19, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League (NCL) today applauded action taken by the Consumer Financial Protection Bureau (CFPB) to hold payments processor BrightSpeed accountable for facilitating payments known to be associated with fraudulent tech support schemes. The Bureau, a critical safeguard for consumers nationwide, has banned BrightSpeed and its founder from participating in multiple financial service industries, including payment processing. Fraudulent tech support scams have been significant source of complaints that NCL receives via its Fraud.org website.

The following statement is attributable to NCL Executive Director Sally Greenberg:

“BrightSpeed processed payments for companies that took advantage of victims, especially senior citizens. They continued to serve scammers despite being aware of nearly 1,000 consumer complaints against their clients, as well as multiple inquiries from banks and law enforcement. BrightSpeed is not alone in this; many other financial institutions are also aware that they are being used to facilitate fraudulent activity. Given the massive spike in fraud since the beginning of the pandemic, we must tackle the problem by addressing all entities involved — especially the financial institutions.

“We hope that today’s action by the CFPB reflects a greater shift towards holding not just fraudsters accountable, but also the financial institutions that enable these crimes. Today’s settlement should serve as wakeup call that looking the other way while fraudsters take advantage of financial services platforms will not be tolerated under the Bureau’s new leadership.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Script Your Future launches eleventh annual student competition for innovations in medication adherence

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January 18, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242

Washington, DC—Today marks the launch of the eleventh annual Script Your Future Medication Adherence Team Challenge, a two-month-long intercollegiate competition among pharmacy student teams and faculty for creating solutions to raise awareness about medication adherence as a critical public health issue. The Challenge, hosted by the National Consumers League (NCL), is returning to university campuses across the country building on a decade of successful student competition and innovation. 

The Challenge is an integral part of Script Your Future, a campaign launched by NCL and its partners in 2011 to combat the problem of poor medication adherence in the United States, where nearly three out of four patients do not take their medication as directed. In addition to medication adherence, in 2022 teams will counsel patients on vaccine confidence and safe drug disposal. 

Both faculty and student participants from last year’s awarded teams have reflected on their experiences in the Script Your Future program: 

“The Script Your Future Team Challenge was a great way for our pharmacy students to collaborate with other health professional students and positively impact our community by being a part of the COVID-19 response efforts, vaccinating thousands of individuals against COVID-19, addressing vaccine hesitancy, as well as providing patient education regarding medication adherence. We appreciate the opportunity the Challenge offered our students, and we are looking forward to participating again this year!”  

—Lisa Hong, PharmD, Associate Professor, Loma Linda University School of Pharmacy 

“Participating in Script Your Future was a refreshing experience and helped me and my students step outside of our frustration with the COVID-19 pandemic and do something about it. It was wonderful to have the opportunity to work with colleagues and students from other programs toward a single goal. Everyone, especially the students, really stepped up and thought outside the box to achieve the goals of Script Your Future.”  

—Erin Gysbers, PA-C, Didactic Director, Assistant Professor, Loma Linda University 

“I am extremely proud of the efforts of our team to achieve vaccination rates as high as 96 percent in our community. This is just a small testament to what we are all capable of in contributing to keep our communities safe and I am excited for future efforts.”  

—Joseph Velasco, PharmD Class of 2022, Loma Linda University School of Pharmacy  

“The Script Your Future Team Challenge has given me the opportunity to create numerous online resources to help patients with their medication adherence and to increase their COVID-19 vaccine confidence. This experience challenged me to work creatively with our WesternU’s AMCP Research and Education committee to not only create helpful infographics, but to widen the accessibility of these resources through QR codes and a texting service. These electronic tools gave patients improved access to our helpful resources on our very own WesternU AMCP Health Helper website. We also expanded onto social media and physically delivered our resources to pharmacies, local communities, and schools in Pomona, California. Participating in this program has been an experience that will resonate through my future career.” 

—Andrew Pham, PharmD Class of 2024, Western University of Health Sciences College of Pharmacy  

As the nation continues to navigate the COVID-19 pandemic, Script Your Future teams are encouraged to build their campaigns centering around vaccine confidence to help address hesitancy and mitigate further spread of the coronavirus. Teams are encouraged to tailor their outreach towards chronic health issues including cardiovascular disease, hypertension, diabetes, and respiratory illnesses. Challenge administrators also welcome the inclusion of other disease groups that would benefit from medication adherence-related interventions. Teams are also encouraged to integrate messaging on the importance of safe drug disposal. Patient counseling on this topic will help patients to know how to properly and safely dispose of their medications after they are no longer needed.  

Through March 28, inter-professional teams—including student pharmacists, nurses, doctors, and others—will implement creative approaches to outreach in their communities to raise awareness and improve understanding about medication adherence. At the end of the Challenge, teams submit entries for review by national partner organizations, and winners are recognized for their efforts to improve medication adherence. 

Last year, Team Challenge student health professionals were met with unique circumstances, hurdles, and obstacles as they navigated the historic COVID-19 pandemic, which resulted in school closures, event cancelations, and a host of other challenges. In spite of this, more than 5,000 future healthcare professionals and volunteers from 78 participating health professions schools participated. Collectively, the teams directly counseled close to 150,000 patients and vaccinated over 134,000 consumers, nationwide. Since the Team Challenge began in 2011, more than 18,800 future healthcare professionals have participated, reaching nearly 26 million consumers. 

Last year’s national award winner was University of Charleston School of Pharmacy. Other schools winning category-specific honors included: University of the Sciences School of Pharmacy; Loma Linda School of Pharmacy; Howard University College of Pharmacy; Wilkes University Nesbitt School of Pharmacy; University of Pittsburgh School of Pharmacy; and Western University College of Pharmacy. Additional participating schools received finalist and runner-up status across a variety of award categories. 

The Team Challenge is sponsored by the American Pharmacists Association (APhA), the National Association of Chain Drug Stores (NACDS) Foundation, and the National Community Pharmacists Association (NCPA). 

To learn about previous winners, visit Script Your Future’s online home. 

For more information on the Challenge, visit the Team Challenge community website. 

Tweet along with us during the Team Challenge using #SYFchallenge, and follow the campaign @IWillTakeMyMeds. 

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About National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

About Script Your Future

Script Your Future is a campaign of the National Consumers League (NCL), a private, non-profit membership organization founded in 1899. NCL’s mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information about the Script Your Future campaign, visit ScriptYourFuture.org. For more information on NCL, please visit nclnet.org.

MLK 2022: Reflecting on victories

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By Sally Greenberg, NCL Executive Director

This weekend we celebrate the life of the great American civil rights icon and hero, Reverend Dr. Martin Luther King Jr. This is a good time to reflect on civil rights victories won by Dr. King during his lifetime and the work left do to achieve his vision for voting rights and protections.

This past year, I revisited the site of Dr. King’s 1968 assassination in Memphis and spent the day walking through the powerful civil rights museum attached to the motel where Dr. King was shot. The museum provides the most complete history I’ve ever seen of America’s legacy of slavery and its aftermath. It was so inspiring but also so sad. I contemplated how different the world might be if we had the wisdom of Dr. King’s words and deeds to guide us all these decades.

Greenberg (right) and friend at MLK Rally for Voting Rights in Washington, DC on January 17, 2022.

During Dr. King’s lifetime and because of his work, the nation made great strides in the movement for racial equality:

  • the 1954 decision in Brown v. Board of Education overturning the doctrine of “separate but equal” and forcing the integration of public schools in America, argued by brilliant litigator and future Supreme Court Justice Thurgood Marshall
  • the 1955 Montgomery Bus Boycott, when 40,000 Black bus riders—the majority of the city’s bus riders—boycotted the system. Black leaders met to form the Montgomery Improvement Association (MIA). The group elected Martin Luther King Jr., the 26-year-old-pastor of Montgomery’s Dexter Avenue Baptist Church, as its president, and decided to continue the boycott until the city met its demands. After several federal court cases, Montgomery’s buses were integrated on December 21, 1956, and the boycott ended. It had lasted 381 days.
  • Civil Rights Act of 1957, the first major civil rights legislation since Reconstruction allowing federal prosecution of anyone who tried to prevent someone from voting and creating a commission to investigate voter fraud
  • The 1963 March on Washington organized and attended by civil rights leaders such as  Philip Randolph, Bayard Rustinand Martin Luther King Jr. when Dr King gave his “I have a dream speech”
  • The Civil Rights Act of 1964 and the Voting Rights Act of 1965, banning all voter literacy tests and provided federal examiners in certain voting jurisdictions.
  • The Fair Housing Act, which became law on April 11, 1968, just days after King’s assassination. It prevented housing discrimination based on race, sex, national origin and religion. It was also the last legislation enacted during the civil rights era.

Greenberg marching across the Frederick Douglass Memorial Bridge.

Sadly, as we start this 2022 MLK weekend, many states have chipped away at voting rights and protections. The Brennan Center reports that an unprecedented 19 states have enacted 33 laws that will make it harder for Americans to vote.

A bill to counteract these attacks on voting rights, “Freedom to Vote: John R. Lewis Act” combines the Freedom to Vote Act and the John R. Lewis Voting Rights Advancement Act is awaiting action in the Senate but its prospects for passage are dimming.

If enacted, it would push back against the undermining of voting rights, affecting everything from how votes are cast to how they are tallied across the country. And it would sweep beyond that, remaking campaign finance laws and calling for a significant redraw of the nation’s House districts.

On this MLK Jr. weekend, the best tribute we could pay to Dr. King and his legacy and sacrifice would be to pass the Freedom to Vote Act in the Senate and get it to President Joe Biden’s desk. I’m still hoping for that miracle to happen.

Jeanette Contreras portrait

Reason to celebrate: No more surprise medical bills in the new year!

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By NCL Director of Health Policy Jeanette Contreras

Consumers have grown to expect surprise medical bills as a given in the fragmented U.S. healthcare system. Even people with large employer-sponsored health insurance coverage could expect to receive a surprise bill for an out-of-network medical service. A 2021 report from the U.S. Department of Health and Human Services outlined how more than half of U.S. consumers reported recently receiving an unexpected medical bill — many related to essential services like childbirth, elective surgeries, or emergency services. Thanks to the No Surprises Act, signed into law as part of the Consolidated Appropriations Act of 2021, surprise medical bills will be a thing of the past.

Beginning January 1, 2022, federal protections ban surprise medical bills any time a person receives emergency care, including some non-emergency services. For example, the new law bans out-of-network charges for out-of-network providers who work at an in-network facility. It also requires that cost-sharing for emergency services, like co-pays and co-insurance, be based on in-network rates.

Healthcare providers and facilities will be required to give patients easy-to-understand notice regarding out-of-network care, explaining that it could be more expensive. Providers will also need to tell patients whom to contact if they think the provider or facility has violated the surprise billing protections. Patients will be able to dispute a claim if they receive a medical bill that is higher than the estimated cost given in advance of care.

Whether or not a patient has insurance, they can submit a complaint about a medical billing issue if they have a question or are concerned that their provider may not be following the new rules. For more help, consumers can go to the CMS.gov webpage to submit a claim online or call the No Surprises Help Desk at 1-800-985-3059, 8am-8pm ET seven days a week; (TTY: 800-985-3059).

NCL, H&R Block partner to help consumers prepare for 2022 tax season

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By Eden Iscil, Public Policy Associate

This week, NCL partnered with H&R Block to provide a free webinar on recent changes and other items to be aware of as we enter tax filing season. The event included a short presentation by Manuel Dominguez (Tax Agency Analyst at H&R Block) outlining the biggest changes tax filers should know, followed by a Q&A session with the panel of tax experts. Moderater NCL’s Vice President of Public Policy, Telecommunications, and Fraud, John Breyault, was joined by panelists Joanna Ain (Associate Director at Prosperity Now), Dominguez, and Garrett Watson (Senior Policy Analyst at the Tax Foundation). If you missed it, you can watch the event on NCL’s YouTube channel here. 

One of the biggest takeaways from the discussion is this: your tax return could look very different from what you may expect due to changes stemming from the 2021 American Rescue Plan (President Biden’s COVID relief bill). For example, parents who received advance Child Tax Credit (CTC) payments throughout 2021, could see a smaller refund than previous years since part of that credit was given in monthly payments throughout the year. Additionally, consumers who were eligible but did not receive an Economic Impact Payment (a.k.a stimulus checks) could see larger-than-expected refunds. 

Other credits that have seen changes include the Child and Dependent Care Credit, with allowable expenses increased to $8,000 for one dependent and $16,000 for two or more dependents. In addition, the Earned Income Tax Credit (EITC) saw an increase in the credit amount and income thresholds for taxpayers with no qualifying children as well as a “loopback election” which allows filers to use either 2019 or 2021 income for the purposes of claiming the EITC (in order to get the highest credit value). 

Another change that could affect filings involves charitable contributions. Normally, filers who choose the standard deduction cannot claim a deduction for charitable contributions. But this year, single filers can claim a deduction of up to $300 for cash contributions to qualifying charitable entities ($600 for joint filers). 

Given the new assistance provided by the federal government, the IRS will be sending new tax documents that filers need to have available when filing. Letter 6419 relates to any advance CTC payments received in 2021. Letter 6475 relates to the third Economic Impact Payment (stimulus check) which went out under President Biden. These documents are important to keep as they will ensure the information you input when filing taxes matches IRS data; if there are discrepancies, your tax return may be delayed.  

For consumers who do not receive a Letter 6419 regarding advance CTC payments, the CTC Update Portal can help. Filers who do not receive a Letter 6475 regarding the third stimulus check should check their eligibility for the Economic Impact Payment and its correlated tax credit here.  

Confused? You’re not alone! 

Fortunately, there are government-sponsored tax preparation services available for free. The Volunteer Income Tax Assistance (VITA) program offers help to people who make less than $57,000, filers with disabilities, and individuals with limited English language knowledge. Additionally, the Tax Counseling for the Elderly (TCE) program is aimed at people 60 and older, with specialization in pensions and other retirement-related issues.  

Lastly, taking the following steps can ensure that you receive your tax return as quickly as possible. First, filing your taxes online is much quicker than filing your taxes by physical mail. Because of backlogs in processing returns from 2021, returns mailed to the IRS will almost certainly result in slower-than-normal refunds being issued. Filing as early in tax season as possible is a great way to reduce the risk of tax identity fraud. Second, keeping those CTC and stimulus check letters (Letter 6419 and Letter 6475, respectively) as well as any previous notices given by the IRS will help avoid any errors and discrepancies which would otherwise cause a lag. Third, using direct deposit to receive refunds can save time by not relying on physical checks sent through the U.S. Mail. 

 If you would like to hear our panelists cover what you should know before filing your taxes in their own words, video of the full webinar can be found here.  

Capital One eliminates predatory overdraft charges

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By Sally Greenberg, NCL Executive Director

Low- and middle-income consumers suffer serious economic harm when they are forced to pay predatory overdraft fees. These fees are triggered when consumers charge more to their bank account — either on a debit card or by writing a check — than the funds existing to cover the charge. These can mean that a $5 charge —when there isn’t enough money in the account to cover it — costs a consumer more like $40 due to an overdraft fee of $35. And if the customer makes other charges not covered by the balance, each one of them can add a $35 overdraft fee.

Some good news, though, came recently from the CEO of Capital One, Rich Fairbanks. He announced that the company will stop charging these harsh fees and return “simplicity and humanity” to banking.

It used to be that covering an overage was a courtesy extended to bank customers at no cost. Sadly, that changed during the 1990s and 2000s, when overdraft fees became a profit center. And the profits are kind of shocking: $15.5 billion in 2019 for banks and credit unions on overdraft fees alone, according to the Consumer Financial Protection Bureau. For some financial institutions, these fees represent more than half of their profits. Reforms are badly needed.

A recent Washington Post editorial identified overdraft best practices:

  • Don’t charge more than one fee per overdraft
  • Provide at least a day grace period
  • Notify customers with a text or email alert about the overdraft
  • Limit the number of fees per year
  • Don’t assess fees at all if the overdraft is under $50

It’s just plain wrong for any industry to rack up big returns on the backs of low- or middle-income consumers. That’s known as a predatory practice for good reason. The National Consumers League hopes the example set by Capital One — to do away with harsh overdraft fees — will be a model for the industry. Banks are entitled to a fair profit, but overdraft fees are clearly a predatory practice. We applaud Capitol One for taking the first step and urge other industry members to follow suit; if nothing else, we hope the industry will move on its own toward the “best practices” playbook outlined above.

Addendum: As of this writing, Ally Bank, PNC, Santander, J.P. Morgan Chase, and Capital One Banks have either eliminated or reduced overdraft fees. We are very pleased to learn of these very important developments, which will greatly reduce the burden of overdrafts, particularly on low-income consumers. We thank these banks for taking important steps to reduce crippling charges for overdrafts. 

National Consumers League statement on the death of Senate Majority Leader Harry Reid

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December 30, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League paid its respects this week to the Senator most responsible for the enactment in 2010 of the landmark Affordable Care Act, known also as “Obamacare,” which for the first time in American history made universal health care available to consumers. We thank Senator Harry Reid of Nevada, who died this week, for that critical achievement.

This statement is attributable to NCL Executive Director Sally Greenberg:

The National Consumers League pays tribute — upon his death — to former Senate Majority Leader Harry Reid, whose remarkable legacy includes navigating the adoption of the 2010 Affordable Care Act through the U.S. Senate. Reid credited the lack of health care available he faced growing up for his determination to get the ACA enacted. He noted that “a great nation can’t have upwards of 40 million to 50 million people with no way to go to a hospital or see a doctor.”

Reid recalled how he saved money working at a gas station to buy his mother a set of teeth and the lack of mental health services for his father, who ultimately died by suicide.

Reid also encouraged a young Illinois Senator, Barack Obama, to run for president. Obama credited Reid with enabling the adoption of his broader agenda. Earlier, while serving in the Nevada State Assembly, Reid got enacted a requirement that utility companies pay interest on large deposits they demanded from customers and championed the Taxpayer Bill of Rights.

While in Congress, Reid consistently fought off efforts by President George W. Bush to privatize Social Security; NCL has long opposed the campaign to privatize this sacred program, which was conceived in the Progressive Era by NCL’s early leaders to protect older Americans from dire poverty. In addition, Reid’s federal environmental agenda took Nevada from 67,000 acres of wilderness to more than 4 million acres of new parks and open spaces and as Majority Leader, Reid shut off funding for the Yucca Mountain nuclear waste site — earmarked for Nevada — citing the health and safety risk to his constituents.

Harry Reid’s life was a true American “rags to riches” story. He rose from dire poverty in Nevada, raised with no running water, telephone, or indoor bathroom. He was elected at age 28 to the Nevada State Assembly and came to Washington, where he joined the U.S. Capital Police and attended George Washington Law School at night. Upon his return to Nevada, he headed the state’s gaming commission for five years; Reid is credited with routing out the influence of long entrenched organized crime from the casino industry.

Reid was elected to the U.S. Senate and eventually became Majority Leader. Though he was soft spoken, Reid used his amateur boxing skills to fight for the interests of consumers and workers. He used to say that “I always would rather dance than fight, but I know how to fight.”  Most Americans likely have no idea how important a force for good Senator Reid was, and achieving passage of the ACA was the highpoint of his career.

As Senator Joe Lieberman noted: “Harry Reid managed something that seemed almost unthinkable: he held every single Senate Democrat — 60 of them, at least at the crucial moment — together to vote for a sprawling, unpopular bill that raised taxes, cut Medicare spending, and insured tens of millions of Americans.”

Americans who today have access to affordable, high quality health care owe Senator Reid a huge debt of gratitude. His tremendous skill, persistence, and passion made the ACA a reality. Harry Reid got “health care for all” over the finish line in the Senate. The National Consumers League is honored to pay tribute to this truly great man.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.