John Zasada, Shareholder, Financial Institutions Group

On Jan. 26. 2022, the Consumer Financial Protection Bureau (CFPB) announced a new initiative to address what they deemed are exploitative junk fees charged by financial institutions and financial companies. According to the CFPB’s research, in 2019, the major credit card companies charged over $14 billion each year in punitive late fees. During this same time, bank revenue from overdraft and non-sufficient funds (NSF) fees surpassed $15 billion. The CFPB has issued a Request for Information Regarding Fees Imposed by Providers of Consumer Financial Products or Services to hear from people about their experiences with financial institution fees, related to:

  • Fees for things people believed were covered by the baseline price of a product or service.
  • Unexpected fees for a product or service.
  • Fees that seemed too high for the purported service.
  • Fees where it was unclear why they were charged.

Learn more about fee regulations by contacting the compliance specialists in our Financial Institutions Group.