Tag Archives: junk fees

After proposing a new rule last week to close a junk fee loophole, the Consumer Financial Protection Bureau has proposed a new rule to stop junk fees at the time of payment.

Overdraft fees—colloquially known as “junk fees” in most circles—cost Americans billions of dollars a year, but a proposed rule from the Consumer Financial Protection Bureau would close one avenue of racking up these charges.

Even in light of changing legislation and promises from banks to be more transparent on how and when overdraft fees occur, the CFPB has found that many Americans are still surprised by them.

Customers will be delighted to know that the CFPB has their back and is helping large banks stop charging junk fees for basic customer service.

The Biden Administration, along with HUD Secretary Marcia L. Fudge, is calling attention to the significant harm that rental housing junk fees cause to tenants and have outlined steps that the Administration is taking to curb these fees. 

In the Bureau’s Fall 2022 report, some mortgage servicers were cited for violations of federal law by charging sizable phone payment fees and for charging consumers fees while they were in CARES Act forbearances.

The CFPB and state regulatory bodies are closely scrutinizing all mortgage-related fees, from the start of a loan to the ongoing servicing of the loan, to ensure compliance with the Fair Debt Collection Practices Act.

Bureau launches initiative to save Americans billions in “junk” fees charged by financial companies and banks.