12 Mar Mississippi Center For Justice Takes Action To Defend Consumer Protections From Attack

FOR IMMEDIATE RELEASE
March 12, 2025

Press Contact:
Dr. Tara Y. Wren, Director of Communications
Mississippi Center for Justice
twren@mscenterforjustice.org
(601) 487-7504

Jackson, MS – As the new administration moves to weaken the Consumer Financial Protection Bureau (CFPB), the Mississippi Center for Justice (MCJ) is stepping in to defend a crucial rule that shields consumers from excessive overdraft fees. MCJ and MyPath have stepped up to serve as Plaintiffs in litigation filed by Democracy Forward to intervene in an action filed in the U.S. District Court for the Southern District of Mississippi – Mississippi Bankers Association et al v. Consumer Financial Protection Bureau et al and protect the CFPB’s Overdraft Rule.

The Overdraft Rule, finalized in December 2024, ensures consumers are not subjected to costly and unfair banking fees. However, a group of financial institutions has challenged the rule, seeking to prevent its enforcement. Now, with the new administration halting key CFPB operations, consumer advocates fear the federal agency will not defend its own rule—leaving everyday Americans vulnerable to financial exploitation.

“The CFPB’s Overdraft Rule is a lifeline for hard-working Mississippians and families across the country,” said Kimberly Jones Merchant, President and CEO of the Mississippi Center for Justice. “For too long, predatory banking practices have disproportionately harmed low-income communities, draining money from those who can least afford it. We are taking action to ensure this rule stands and that consumers remain protected.”

Overdraft fees have long been a source of financial strain, particularly for individuals living paycheck to paycheck. The CFPB’s rule is expected to return an estimated $5 billion to consumers annually, saving households an average of $225 per year. The Mississippi Center for Justice has long fought for economic justice and financial protections for vulnerable communities. With this legal intervention, MCJ reaffirms its commitment to ensuring that consumers—not big banks—are the priority in financial policy.

For more information about the case or to access the legal filings, click here.

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The Mississippi Center for Justice (MCJ) is a nonprofit, public-interest law firm committed to advancing racial, economic, and social justice. Supported and staffed by attorneys and other professionals, MCJ develops and pursues strategies to combat discrimination and poverty statewide.