CFPB Signals Crackdown on Junk Fees
Updated: Jun 2, 2022
The Consumer Financial Protection Bureau, January 26, 2022, has launched an initiative to help protect American consumers from so-called “junk fees” charged by financial institutions. CFPB explains junk fees are exploitative fees added onto financial services to overcharge consumers for additional profit to the provider. These fees can be associated with banks, credit unions, prepaid or credit card accounts, credit cards, mortgages, loans, or payment transfers.
The following types of charges have been called out as common forms of potential junk fees: