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Effective Date: Supervisory Highlights Junk Fees Special Edition

This special edition of Supervisory Highlights focuses on the Consumer Financial Protection Bureau’s (CFPB or Bureau) recent supervisory work related to violations of law in connection with fees.1 As part of its emphasis on fair competition the CFPB has launched an initiative, consistent with its legal authority, to scrutinize exploitative fees charged by banks and financial companies, commonly referred to as “junk fees.” Junk fees are unnecessary charges that inflate costs while adding little to no value to the consumer. Theses unavoidable or surprise charges are often hidden or disclosed only at a later stage in the consumer’s purchasing process or sometimes not at all. The CFPB administers several laws and regulations that may touch on fees including, but not limited to, the Credit Card, Accountability, Responsibility and Disclosure Act of 2009 (CARD Act),2 the Fair Debt Collection Practices Act (FDCPA),3 Regulation Z,4 and the prohibition against unfair, deceptive, or abusive acts or practices (UDAAP) under the Consumer Financial Protection Act of 2010 (CFPA).5 The findings in this report cover examinations involving fees in the areas of deposits, auto servicing, mortgage servicing, payday and small dollar lending, and student loan servicing completed between July 1, 2022, and February 1, 2023. To maintain the anonymity of the supervised institutions discussed in Supervisory Highlights, references to institutions generally are in the plural and the related findings may pertain to one or more institutions. We invite readers with questions or comments about Supervisory Highlights to contact us at [email protected].

  • March 8, 2023
  • Time: All Day