The Consumer Financial Protection Bureau signaled this week that it’s intent on eliminating bank junk fees for consumers. The regulatory body confirmed that commitment with the release of a new Supervisory Highlights report and a separate advisory opinion.
The report’s impact on bank junk fees
Also, the bureau’s Supervisory Highlights report was released on Wednesday, and directly addressed bank junk fees. Evidently, $140 million in junk fees were identified, including fees related to auto loan add-on products and “fake paper statements.” Additional fees included “surprise overdraft fees and double-dipping on non-sufficient funds.”
Notably, the companies responsible for the fees have agreed to refund that money to their customers. CFPB Director Rohit Chopra vowed to continue the bureau’s work in this area:
“The CFPB continues to uncover junk fee scams that violate the law and undermine consumer trust. We will continue to combat the illegal fees cropping up in consumer finance markets.”
A new advisory opinion offering guidance for financial firms
Additionally, the CFPB released an advisory opinion to help banks and credit unions navigate this complex issue. In a press release, the bureau cited a 2010 act of Congress that prohibits financial firms from creating “unreasonable obstacles” for consumers who want to obtain basic details about their bank accounts.
Significantly, that law forbids banks from imposing excessive fees on customers who simply want to obtain details about those accounts. The 2010 law was passed in response to the 2008 financial crisis. Specifically, it was designed to ensure that customers could quickly access information about mortgages and other loans.
Reportedly, many large banks charge fees to customers who seek that type of information. As a result, the bureau asserts that those charges are illegal bank junk fees that violate customers’ absolute legal right to access details about their accounts.
