CFPB signals crackdown on hidden fees for banks, credit cards
Rohit Chopra (Director of the Consumer Financial Protection Bureau).
Alex Edelman/Bloomberg via Getty Images
On Wednesday, the Consumer Financial Protection Bureau announced a wide crackdown against hidden or excessive fees charged banks and mortgage lenders by other financial institutions.
In response to the 2008 financial crisis the federal agency is asking consumers for their input regarding so-called “junk fees” associated with credit cards, banks, credit unions and mortgages.
According to an agency’s Wednesday announcement, such experiences could relate to product and service: People thought that the baseline price covered all fees. Unexpected fees. Fees that seem too high. Fees where there was no explanation for charging them.
According to the agency, resort fees are added to hotel bills as well as service fees that are added to concert tickets. These fees are known to be “well-known” examples. request for information.
According to the agency, the CFPB plans to use public comments in order to create new rules and provide guidance for firms. It will also focus its enforcement and supervisory resources.
Rohit Chopra (CFPB Director) was appointed by President Joe Biden to make a statement. “Many financial institution hide the true cost of their services through luring customers using enticing offers, and then charging excessive Junk Fees,” he said. Our goal is to help Americans save billions by encouraging competition, and removing illegal practices from the marketplace.
According to the CFPB, small business owners, lawyers from non-profits, small credit unions, academia, researchers and state officials are all welcome.
This is an ongoing story. Stay tuned for new updates.