September, 21 2021, 05:03pm EDT
#WelcomeWithDignity Expresses Steadfast Solidarity with Haitians
Today, the #WelcomeWithDignity campaign expressed its disgust with Customs and Border Protection's treatment of Haitian people seeking asylum at Del Rio, Texas.
WASHINGTON
Today, the #WelcomeWithDignity campaign expressed its disgust with Customs and Border Protection's treatment of Haitian people seeking asylum at Del Rio, Texas. The campaign joined dozens of other national organizations and expressed steadfast solidarity with Haitian communities and Haitian-led organizations including #WelcomeWithDignity partner Haitian Bridge Alliance. The campaign called on the United States to immediately halt expulsions to Haiti, end the misuse of Title 42, and examine the pattern of unconscionable abuse of Black asylum seekers by CBP. Human Rights First and the Haitian Bridge Alliance released a fact sheet today on the Biden administration's dangerous Haitian expulsion strategy and the U.S. history of illegal and discriminatory mistreatment of Haitians seeking safety in the United States.
"The cruelty rooted in hate, white supremacy, and xenophobia that shaped US immigration policies for years continue to brutally harm and oppress millions of people today," said Denise Bell, researcher for refugee and migrant rights at Amnesty International USA. "The Biden administration has had months to reshape how the United States treats and welcomes people and time and time again, it has failed. People seeking safety deserve much better than this from an administration that promised humanity and dignity. It's well past time for the US to uphold the right of all people to seek safety in this country and center the dignity and humanity of Haitians seeking safety."
"The abuse we are witnessing right now against Haitian asylum seekers in Del Rio is abhorrent. The images of Border Patrol officers on horseback chasing and whipping Black Haitians looking for safety following a devastating earthquake and political crisis in Haiti clearly demonstrates the direct linkage between our modern policing institutions and slave patrols - and is a condemnation of the U.S.' continued investment in the militarization of our southern border which has enabled such violence against primarily Black and Brown migrants and families," said Fernando Garcia, executive director of the Border Network for Human Rights. "Seeking asylum is a legal right, and the Biden administration is violating that right by deporting Haitian asylum seekers en masse without due process. We demand that President Biden and Secretary Mayorkas conduct an investigation into the events in Del Rio against Haitian migrants, and hold Border Patrol and all involved parties accountable. Additionally, we call on Congress to ensure these horrors at our border never happen again by enacting legislation on Border Patrol accountability to stop abuses and protect the rights of all migrants, regardless of their race or country of origin."
"Ramping up expulsions after a federal court ruled the Title 42 policy illegal is outrageous," said Blaine Bookey, Legal Director at the Center for Gender & Refugee Studies (CGRS) and co-counsel in the Huisha-Huisha v. Mayorkas case. "Sending Haitians back to a place where many will face violence, homelessness, and even death without so much as asking whether they have a fear of return is unlawful and unconscionable. CGRS has been working closely with Haitian civil society groups for over two decades. Our partners on the ground report that conditions have never been so dire, even in post-coup periods. President Biden has chosen to embrace the anti-refugee, anti-Black agenda of the Trump administration, and Haitians and their allies will not forget it."
"What is happening in Del Rio right now will go down in history as a shameful symbol of racist and inhumane U.S. border policies designed to expel, divide and exploit people in search of safety," stated Ian Philabaum, Program Director with Innovation Law Lab. "The Biden Administration can either continue down its path to a legacy of racist border enforcement or halt deportation flights to Haiti and welcome people with dignity."
"The Biden administration's treatment of our Haitian neighbors lacks a moral compass. We are horrified by the administration's cruel and inhumane treatment of Haitians seeking refuge in the United States," said Meredith Owen, Director of Policy and Advocacy for Church World Service. "Faith communities are shocked by the administration's resumption of deportations and expulsions of Haitian asylum seekers and immigrants, without regard for the life-threatening consequences, and strongly oppose unlawful Title 42 expulsions that persist. We urge the administration to immediately halt removals to Haiti, end all Title 42 expulsions and restore asylum protections, and hold CBP accountable for its abuses against Haitian migrants."
"The Biden administration's misuse of Title 42 to expel people to danger and refusal to restart asylum aren't just moral stains on the administration's record, they directly violate and subvert U.S. refugee law and international treaties," said Eleanor Acer, Senior Director of Refugee Protection at Human Rights First. "From its horrific treatment of Haitians at the border to its pursuit of a policy that public health experts have confirmed is a xenophobic ploy rooted in racism, the Biden administration continues to wage, not wind down, President Trump's all-out war on people seeking protection and the U.S asylum system."
"We cannot and will not stop shining the spotlight on this administration for its horrific treatment of Haitian people seeking asylum," said Jonathan Goldman, Executive Director of the Student Clinic for Immigrant Justice. "This is what you get from a system built on a history of white supremacy. Too few people realize the first immigration laws enacted by the US were to ensure citizenship for free white people. When we have a system built on racism, it doesn't just go away with time. We must transform our immigration system and hold the government accountable for its actions. The Biden administration must immediately suspend removals to Haiti and end Title 42 once and for all."
"The deportation of individuals from Haiti is heartbreaking to watch, and reminiscent of the cruel and illegal policies of the previous administration. It is unacceptable and we implore the Biden administration to halt Title 42 expulsions immediately and keep its earlier promise to restore protection pathways to the US," said Nili Sarit Yossinger, Executive Director of Refugee Congress.
"The brutal mis-treatment of Haitians at Del Rio and their expulsion to a country in crisis is a human rights catastrophe and represents America at its worst, said Yael Schacher, Senior U.S. Advocate at Refugees International. "The flights to Haiti must stop and we must treat Haitians seeking refuge at the border with dignity and due process."
"For an administration that has stated that Black lives matter to them, the photos that circulated the media yesterday point to a different reality. That is the reality that this administration continues to view Black & Indigenous bodies as disposable" said Dr. Jessica Hernandez, Climate Justice Policy Strategist for International Mayan League. "The administration should call those officers shown in the photos beating Haitain refugees into question--this should also be grounds for asylum because those officers violated their human rights. No person should be subjected to this malicious treatment or policing. The administration should also remediate the violence Haitain climate refugees and asylum seekers experienced by halting the deportation flights. They should come through as an administration that stands for Black lives and do just by our Haitain relatives. The International Mayan League was deeply hurt by those photos and those photos only captured seconds of all the horrendous austracities our Haitain relatives were facing at the hands of this administration. Shame on any political leader who does not use their voice to speak against this."
"The Biden Administration should be ashamed of its reprehensible, racist treatment of Haitian refugees fleeing political turmoil and environmental disaster," said Adela de la Torre, deputy director of Justice Action Center. "President Biden must end the double speak and finally follow through on his campaign promises to end Title 42 and treat all immigrants with dignity. We join Black, immigrant-led groups in demanding the administration cease all deportation flights to Haiti, grant humanitarian parole and assistance to Haitian asylum seekers, and investigate CBP's violence against Haitians in Del Rio, Texas."
"This is a clear moment, where we have a choice in how we welcome some of the world's most vulnerable people fleeing the effects of climate change and political instability, said Nicole Melaku, executive director of the National Partnership for New Americans. The expulsion of thousands of Hatian migrants without the opportunity to process their claim for asylum or other protected status is a moral failure of our nation and the continued use of TItle 42 is simply reprehensible at a time when this administration should be seeking to undo the immeasurable harm of this racist policy from the last administration. We cannot inch our way toward welcoming Black migrants and turn our heads to ignore the horrific conditions and humanitarian crisis unfolding before us.
"CLINIC condemns the Biden administration's unconscionable decision to increase the deportation of thousands of Haitian asylum seekers arriving at the U.S. border pleading to save their lives," said Anna Gallagher, CLINIC executive director. "This decision is bad domestic, bad foreign policy, immoral and inhumane. It is hypocritical to redesignate Temporary Protected Status for Haiti, based on the conclusion that it is too dangerous for people to return to Haiti pre-earthquake, and now take this decision to expedite deportations to even worse conditions. CLINIC wishes to make clear to every Black asylum seeker and immigrant that we see you and your lives matter. To our Black immigrant partners - we stand in solidarity and action with you at this horrific moment and for as long as it takes to eradicate anti-Black racism and policy from the U.S. immigration system."
"It is unconscionable and unfathomably cruel that the Biden administration is ramping up removal flights to Haiti at a time when the country is reeling from the aftermath of a catastrophic earthquake and the assassination of its president," said Laura St. John, Legal Director at the Florence Immigrant & Refugee Rights Project. "Despite the fact that the Biden administration has designated Haiti for Temporary Protected Status and a court last week ruled that expelling families under Title 42 is illegal, the administration nevertheless appears determined to slam the doors to the United States shut to Haitians seeking safe refuge. We strongly urge the administration to immediately reverse course, halt all planned deportation flights, and allow Haitians seeking asylum the opportunity to exercise their right to request safety and protection here in the United States."
Carolina Martin Ramos, Esq., Co-Executive Director, Comunidad Maya Pixan Ixim, stated: "The world watches as U.S. immigration authorities, reminiscent of slave patrols, whip Black refugees at the southern border. How many times will we watch news of Black and Brown bodies subjected to violence and death at the hands of CBP? Besides Federal Indian Law, U.S. immigration policies are some of the most obvious examples of white supremacy under U.S. settler colonial law and policy. It is 2021 and under the Biden administration, we are still seeing horrific images of Black bodies subjected to state violence. We stand with our Black and African descent relatives to demand that our Haitian relatives seeking asylum are treated with dignity and respect. We cannot ignore these serious human rights violations by the U.S. government on Indigenous stolen lands. U.S. political interventions along with corporate business interests have created the conditions that continue to displace African descent and Indigenous peoples from places like Haiti and Guatemala. U.S. foreign policies effectively force us to seek asylum in the U.S. and then U.S. immigration officials brutalize us when we seek to assert our rights to seek asylum under international laws. These human rights abuses are delegitimizing the United States in the world's eyes and showing that the U.S. has never really stood as a beacon for human rights. We stand adamantly in our commitment to fight for the dignity and human rights of our Black and Haitian relatives and CMPI stands with all our relations to decry all violence and suffering caused by settler colonialism and white supremacy on stolen lands."
"The inhumane brutality exercised at the southern border by CBP officials using horse whips to attack and terrorize Haitian migrants brings to light the xenophobic and white supremacist foundations of our immigration system. An investigation must take place immediately to hold those involved accountable. The administration must look long and hard at these images and recommit to a complete rehaul of our asylum system starting with ending Title 42, immediate suspension of deportation flights to Haiti, and increased parole for Haitian migrants. DHS must address the appallingly toxic culture of CBP immediately. By ignoring the demands of Haitian-led organizations like Haitian Bridge, the administration is choosing to perpetuate anti-blackness. We will not stand idly by and allow this to happen to our Haitian community." - Joyce Noche, Legal Services Director, Immigrant Defenders Law Center
Michele Garnett McKenzie, Deputy Director of The Advocates for Human Rights, stated: "The Advocates for Human Rights is outraged by the physical assaults and verbal abuse of Haitians by U.S. Customs and Border Protection officers in Del Rio. This conduct violates the fundamental human right to seek asylum and runs counter to our values as a nation. DHS must take immediate action to investigate and hold individuals accountable for these human rights violations. DHS also must fix the systemic failures and toxic organizational culture which allows abuses like this to occur. The United States must commit to a migration system that recognizes and holds people accountable for ensuring human dignity."
"We are appalled by the cruel treatment we've seen from U.S. border officials towards Haitians along the U.S.-Mexico border. To expel Haitian families and adults back to a country suffering multiple crises, when even Haitian government officials have said they cannot accept people, is unconscionable. A federal court has already ruled that the Title 42 policy is illegal, it's time to end it. We urge the Biden Administration to immediately halt removals of Haitians and instead utilize humanitarian parole to process them fairly, ensuring that all those who seek protection can do so humanely. We can do better as a country and extend a welcoming hand to our Haitian neighbors. This is not who we are," states Daniella Burgi-Palomino, LAWG Co-director.
"It is reprehensible that Haitian families seeking safety amidst political violence and a devastating earthquake at home are met with anti-Black violence and no real opportunity to seek protection at the U.S. border," said Katharina Obser, director of the Migrant Rights and Justice Program at the Women's Refugee Commission. "That the administration is choosing to respond to Haitians seeking safety by increasing removal flights full of families, including children, back to Haiti continues its morally indefensible and unlawful deterrence tactics and denies those legally seeking safety any meaningful chance to do so. We urge the Biden administration and Secretary Mayorkas to enact desperately needed accountability for what is happening along the border, and to once and for all ensure Haitian migrants can exercise their legal right to seek asylum with dignity."
"We demand a full and immediate reversal by the Biden Administration on its approach to this situation," said Efren Olivares, deputy legal director of the SPLC's Immigrant Justice Project. "Without one, and without holding federal officers accountable for abusing Haitian immigrants and asylum seekers, the U.S. will abdicate any remaining hopes of retaining moral legitimacy on human rights issues. At this point, the U.S. is not only flouting its legal obligations to asylum seekers but also perpetuating anti-immigrant and anti-Black racism."
"Seeking asylum is a fundamental human and legal right. Yet, thousands of Haitians who survived devastating natural disasters and political violence are being dehumanized, denied due process, and violently and forcibly returned to the very conditions they fled," said Marielena Hincapie, executive director of the National Immigration Law Center. "This is legally and morally unacceptable. President Biden was elected on a campaign promise to undo the harm of four years under the Trump administration, which decimated the systems set up to protect people seeking safety. Instead of striving to keep that promise, the Biden administration has instead doubled down on a failed and inhumane strategy of deterrence and exacerbated the harm to vulnerable communities. We urge the Biden administration to immediately stop all deportations to Haiti and end all policies that deprive people of their rights at the border. The administration must chart a different course to welcome those seeking safety with dignity and humanity."
"Jesuit Refugee Service/USA is deeply concerned about the U.S. decision to ramp up deportation of Haitian migrants, particularly after the courts deemed Title 42 illegal, said Joan Rosenhauer, Executive Director of JRS/USA. Disturbing images of CBP officers committing terrible acts of violence against Haitian migrants only highlight the abuse some defenseless migrants face in the process of deportation. The U.S. must offer protection to those seeking safety at our border and work towards rebuilding the U.S. asylum system. The Biden Administration needs to stop deporting refugees based on a Trump-era policy that has no scientific basis and only places migrants and refugees in harm's way."
"We stand in solidarity with our partners in condemning the horrific treatment of Haitian asylum seekers and calling out the long history of discrimination against Black migrants," said Carmen Maria Rey, U.S. Legal Services Director of the International Refugee Assistance Project (IRAP). "The Biden administration must be held accountable for continuing, and in some cases, expanding, the hateful policies of the previous administration. Seeking asylum is legal. Brutally denying migrants their human rights is not. The Biden administration must immediately end Title 42 expulsions and suspend deportations to Haiti."
"Yesterday 45 children were reportedly deported to Haiti. 45 children. What about the dangers of return in the midst of political turmoil, an earthquake disaster, hunger and a Covid-strained medical system? Are returnees even tested, or are we exporting Covid? There are 4 flights scheduled to Port-au-Prince today. How many of those deported are families, mothers, babies?" said Thomas Cartwright, Leadership Team at Witness at the Border. "The images of CBP on horseback running down migrants delivering food to the hungry are disgusting and disturbing. We need to stop expelling migrants back to danger. And we need to stop pretending that Title 42 is about public health; it's merely another tool to say, 'Don't come.' Let them in!"
Amnesty International is a global movement of millions of people demanding human rights for all people - no matter who they are or where they are. We are the world's largest grassroots human rights organization.
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Amnesty Urges War Crimes Probe of 'Indiscriminate' Israeli Attacks on Lebanon
"The latest evidence of unlawful airstrikes during Israel's most recent offensive in Lebanon underscores the urgent need for all states, especially the United States, to suspend arms transfers," said one campaigner.
Dec 12, 2024
Amnesty International on Thursday called for a war crimes investigation into recent Israeli airstrikes in Lebanon that killed dozens of civilians, as well as a suspension of arms transfers to Israel as it attacks Gaza, the West Bank, and Syria.
In a briefing paper titled The Sky Rained Missiles, Amnesty "documented four illustrative cases in which unlawful Israeli strikes killed at least 49 civilians" in Lebanon in September and October amid an Israel Defense Forces (IDF) campaign of invasion and bombardment that Lebanese officials say has killed or wounded more than 20,000 people.
"Amnesty International found that Israeli forces unlawfully struck residential buildings in the village of al-Ain in northern Bekaa on September 29, the village of Aitou in northern Lebanon on October 14, and in Baalbeck city on October 21," the rights group said. "Israeli forces also unlawfully attacked the municipal headquarters in Nabatieh in southern Lebanon on October 16."
Erika Guevara Rosas, Amnesty's senior director for research, advocacy, policy, and campaigns, said in a statement that "these four attacks are emblematic of Israel's shocking disregard for civilian lives in Lebanon and their willingness to flout international law."
The September 29 attack "destroyed the house of the Syrian al-Shaar family, killing all nine members of the family who were sleeping inside," the report states.
"This is a civilian house, there is no military target in it whatsoever," village mukhtar, or leader, Youssef Jaafar told Amnesty. "It is full of kids. This family is well-known in town."
On October 16, Israel bombed the Nabatieh municipal complex, killing Mayor Ahmad Khalil and 10 other people.
"The airstrike took place without warning, just as the municipality's crisis unit was meeting to coordinate deliveries of aid, including food, water, and medicine, to residents and internally displaced people who had fled bombardment in other parts of southern Lebanon," Amnesty said, adding that there was no apparent military target in the immediate area.
In the deadliest single strike detailed in the Amnesty report, IDF bombardment believed to be targeting a suspected Hezbollah member killed 23 civilians forcibly displaced from southern Lebanon in Aitou on October 14.
"The youngest casualty was Aline, a 5-month-old baby who was flung from the house into a pickup truck nearby and was found by rescue workers the day after the strike," Amnesty said.
Survivor Jinane Hijazi told Amnesty: "I've lost everything; my entire family, my parents, my siblings, my daughter. I wish I had died that day too."
As the report notes:
A fragment of the munition found at the site of the attack was analyzed by an Amnesty International weapons expert and based upon its size, shape, and the scalloped edges of the heavy metal casing, identified as most likely a MK-80 series aerial bomb, which would mean it was at least a 500-pound bomb. The United States is the primary supplier of these types of munitions to Israel.
"The means and method of this attack on a house full of civilians likely would make this an indiscriminate attack and it also may have been disproportionate given the presence of a large number of civilians at the time of the strike," Amnesty stressed. "It should be investigated as a war crime."
The October 21 strike destroyed a building housing 13 members of the Othman family, killing two women and four children and wounding seven others.
"My son woke me up; he was thirsty and wanted to drink. I gave him water and he went back to sleep, hugging his brother," survivor Fatima Drai—who lost her two sons Hassan, 5, and Hussein, 3, in the attack—told Amnesty.
"When he hugged his brother, I smiled and thought, I'll tell his father how our son is when he comes back," she added. "I went to pray, and then everything around me exploded. A gas canister exploded, burning my feet, and within seconds, it consumed my kids' room."
Guevara Rosas said: "These attacks must be investigated as war crimes. The Lebanese government must urgently call for a special session at the U.N. Human Rights Council to establish an independent investigative mechanism into the alleged violations and crimes committed by all parties in this conflict. It must also grant the International Criminal Court jurisdiction over Rome Statute crimes committed on Lebanese territory."
"Israel has an appalling track record of carrying out unlawful airstrikes in Gaza and past wars in Lebanon taking a devastating toll on civilians."
Last month, the court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Israeli Defense Minister Yoav Gallant for alleged war crimes and crimes against humanity in connection with Israel's 433-day Gaza onslaught, which has left more than 162,000 Palestinians dead, maimed, or missing in the embattled enclave.
The tribunal also issued a warrant for the arrest of Hamas leader Mohammed Diab Ibrahim Al-Masri for alleged crimes committed during and after the October 7, 2023 attack on Israel, in which more than 1,100 people were killed and over 240 others were kidnapped.
Meanwhile, the International Court of Justice is weighing a genocide case brought by South Africa against Israel. Last week, Amnesty published a report accusing Israel of genocide in Gaza.
The United States—which provides Israel with tens of billions of dollars in military aid and diplomatic cover—has also been accused of complicity in Israeli war crimes in Palestine and Lebanon.
"Israel has an appalling track record of carrying out unlawful airstrikes in Gaza and past wars in Lebanon taking a devastating toll on civilians," Guevara Rosas said. "The latest evidence of unlawful air strikes during Israel's most recent offensive in Lebanon underscores the urgent need for all states, especially the United States, to suspend arms transfers to Israel due to the risk they will be used to commit serious violations of international humanitarian law."
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Congressional Report Calls Trump Deportation Plan 'Catastrophic' for Economy
"All it will do is raise grocery prices, destroy jobs, and shrink the economy," JEC Chair Martin Heinrich said of the president-elect's plan to deport millions of immigrants.
Dec 12, 2024
Echoing recent warnings from economists, business leaders, news reporting, and immigrant rights groups, Democrats on the congressional Joint Economic Committee detailed Thursday how President-elect Donald Trump's planned mass deportations "would deliver a catastrophic blow to the U.S. economy."
"Though the U.S. immigration system remains broken, immigrants are crucial to growing the labor force and supporting economic output," states the new report from JEC Democrats. "Immigrants have helped expand the labor supply, pay nearly $580 billion a year in taxes, possess a spending power of $1.6 trillion a year, and just last year contributed close to $50 billion each in personal income and consumer spending."
There are an estimated 11.7 million undocumented immigrants in the United States, and Trump—who is set to be sworn in next month—has even suggested he would deport children who are American citizens with their parents who are not and attempt to end birthright citizenship.
Citing recent research by the American Immigration Council and the Peterson Institute for International Economics, the JEC report warns that depending on how many immigrants are forced out of the country, Trump's deportations could:
- Reduce real gross domestic product (GDP) by as much as 7.4% by 2028;
- Reduce the supply of workers for key industries, including by up to 225,000 workers in agriculture and 1.5 million workers in construction;
- Push prices up to 9.1% higher by 2028; and
- Cost 44,000 U.S.-born workers their jobs for every half a million immigrants who are removed from the labor force.
Highlighting how mass deportations would harm not only undocumented immigrants but also U.S. citizens, the report explains that construction worker losses would "make housing even harder to build, raising its cost," and "reduce the supply of farmworkers who keep Americans fed as well as the supply of home health aides at a time when more Americans are aging and requiring assistance."
In addition to reducing home care labor, Trump's deportation plan would specifically harm seniors by reducing money for key government benefits that only serve U.S. citizens. The report references estimates that it "would cut $23 billion in funds for Social Security and $6 billion from Medicare each year because these workers would no longer pay into these programs."
Sen. Martin Heinrich (D-N.M.), who chairs the JEC, said Thursday that "as a son of an immigrant, I know how hard immigrants work, how much they believe in this country, and how much they're willing to give back. They are the backbone of our economy and the driving force behind our nation's growth and prosperity."
"Trump's plan to deport millions of immigrants does absolutely nothing to address the core problems driving our broken immigration system," Heinrich stressed. "Instead, all it will do is raise grocery prices, destroy jobs, and shrink the economy. His immigration policy is reckless and would cause irreparable harm to our economy."
Along with laying out the economic toll of Trump's promised deportations, the JEC report makes the case that "providing a pathway to citizenship is good economics. Immigrants are helping meet labor demand while also demonstrating that more legal pathways to working in the United States are needed to meet this demand."
"Additionally, research shows that expanding legal immigration pathways can reduce irregular border crossings, leading to more secure and regulated borders," the publication says. "This approach is vital for managing increased migration to the United States, especially as more people flee their home countries due to the continued risk of violence, persecution, economic conditions, natural disasters, and climate change."
The JEC report followed a Senate Judiciary Committee hearing on Tuesday that explored how mass deportations would not only devastate the U.S. economy but also harm the armed forces and tear apart American families.
In a statement, Vanessa Cárdenas, executive director of the advocacy group America's Voice, thanked Senate Judiciary Committee Chair Dick Durbin (D-Ill.) "for calling this important discussion together and shining a spotlight on the potential damage."
Cárdenas pointed out that her group has spent months warning about how Trump's plan would "cripple communities and spike inflation," plus cause "tremendous human suffering as American citizens are ripped from their families, as parents are separated from their children, or as American citizens are deported by their own government."
"Trump and his allies have said it will be 'bloody,' that 'nobody is off the table,' and that 'you have to send them all back,'" she noted, arguing that the Republican plan will "set us back on both border control and public safety."
Cárdenas concluded that "America needs a serious immigration reform proposal—with pathways to legal status and controlled and orderly legal immigration—which recognize[s] immigrants are essential for America's future."
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New Rule From Agency Trump Wants Destroyed Would Save Consumers $5 Billion Per Year in Overdraft Fees
One advocate called the CFPB's new rule "a major milestone in its effort to level the playing field between regular people and big banks."
Dec 12, 2024
The Consumer Financial Protection Bureau, one of President-elect Donald Trump's top expected targets as he plans to dismantle parts of the federal government after taking office in January, announced on Thursday its latest action aimed at saving households across the U.S. hundreds of dollars in fees each year.
The agency issued a final rule to close a 55-year-old loophole that has allowed big banks to collect billions of dollars in overdraft fees from consumers each year,
The rule makes significant updates to federal regulations for financial institutions' overdraft fees, ordering banks with more than $10 billion in assets to choose between several options:
- Capping their overdraft fees at $5;
- Capping fees at an amount that covers costs and losses; or
- Disclosing the terms of overdraft loans as they do with other loans, giving consumers a choice regarding whether they open a line of overdraft credit and allowing them to comparison-shop.
The final rule is expected to save Americans $5 billion annually in overdraft fees, or about $225 per household that pays overdraft fees.
Adam Rust, director of financial services at the Consumer Federation of America, called the rule "a major milestone" in the CFPB's efforts "to level the playing field between regular people and big banks."
"No one should have to pick between paying a junk overdraft fee or buying groceries," said Rust. "This rule gives banks a choice: they can charge a reasonable fee that does not exploit their customers, or they can treat these loan products as an extension of credit and comply with existing lending laws."
The rule is set to go into effect next October, but the incoming Trump administration could put its implementation in jeopardy. Trump has named billionaire Tesla CEO Elon Musk to co-lead the Department of Government Efficiency, an advisory body he hopes to create. Musk has signaled that he wants to "delete" the CFPB, echoing a proposal within the right-wing policy agenda Project 2025, which was co-authored by many officials from the first Trump term.
"The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they're charging on overdraft loans."
"It is critical that incoming and returning members of Congress and President-elect Trump side with voters struggling in this economy and support the CFPB's overdraft rule," said Lauren Saunders, associate director at the National Consumer Law Center (NCLC). "This rule is an example of the CFPB's hard work for everyday Americans."
In recent decades, banks have used overdraft fees as profit drivers which increase consumer costs by billions of dollars every year while causing tens of millions to lose access to banking services and face negative credit reports that can harm their financial futures.
The Federal Reserve Board exempted banks from Truth in Lending Act protections in 1969, allowing them to charge overdraft fees without disclosing their terms to consumers.
"For far too long, the largest banks have exploited a legal loophole that has drained billions of dollars from Americans' deposit accounts," said CFPB Director Rohit Chopra. "The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they're charging on overdraft loans."
Government watchdog Accountable.US credited the CFPB with cracking down on overdraft fees despite aggressive campaigning against the action by Wall Street, which has claimed the fees have benefits for American families.
Accountable.US noted that Republican Reps. Patrick McHenry of North Carolina and Andy Barr of Kentucky have appeared to lift their criticisms of the rule straight from industry talking points, claiming that reforming overdraft fee rules would "limit consumer choice, stifle innovation, and ultimately raise the cost of banking for all consumers."
Similarly, in April Barr claimed at a hearing that "the vast majority of Americans" believe credit card late fees are legitimate after the Biden administration unveiled a rule capping the fees at $8.
"Americans pay billions in overdraft fees every year, but the CFPB's final rule is putting an end to the $35 surprise fee," said Liz Zelnick, director of the Economic Security and Corporate Power Program at Accountable.US. "Despite efforts to block the rule and protect petty profits by big bank CEOs and lobbyists, the Biden administration's initiative will protect our wallets from an exploitative profit-maximizing tactic."
The new overdraft fee rule follows a $95 million enforcement action against Navy Federal Credit Union for illegal surprise overdraft fees and similar actions against Wells Fargo, Regions Bank, and Atlantic Union.
Consumers have saved $6 billion annually through the CFPB's initiative to curb junk fees, which has led multiple banks to reduce or eliminate their fees.
"Big banks that charge high fees for overdrafts are not providing a courtesy to consumers—it's a form of predatory lending that exacerbates wealth disparities and racial inequalities," said Carla Sanchez-Adams, senior attorney at NCLC. "The CFPB's overdraft rule ensures that the most vulnerable consumers are protected from big banks trying to pad their profits with junk fees."
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