Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.
Consumers are slated to receive $140 million in refunds for unwarranted charges, as disclosed by the Consumer Financial Protection Bureau (CFPB) on Wednesday.
Of this amount, $98 million is earmarked for unexpected overdraft fees and an additional $22 million for redundant insufficient fund charges on individual transactions. The CFPB highlighted certain companies’ malpractice of invoicing monthly fees for undelivered paper bank statements, terming it as “millions in fake revenue.” Such fees, along with other unjust charges associated with bank deposits, auto loan services, and global money transfers, are in line for reimbursement.
CFPB Director Rohit Chopra commented, “The CFPB continues to uncover junk fee scams that violate the law and undermine consumer trust.” He further stressed the agency’s dedication to addressing these illegal charges in consumer finance.
This initiative is part of a broader effort by the Biden administration to tackle concealed and unwarranted fees across sectors. Reinforcing this objective, the Federal Trade Commission (FTC) revealed a proposed rule to mandate transparent fee inclusions, effectively eliminating “junk fees.”
FTC Chairwoman Lina Khan stated that the new rule aims to promote “honest pricing” and deter deceitful business practices. In addition, the CFPB implemented a policy directing major banks and credit unions to grant straightforward account information to customers, opposing unreasonable impediments like exorbitant fees.