Federal consumer watchdog's new guidance aims to end two 'likely unfair and unlawful' junk fees at banks
"Americans are willing to pay for legitimate services at a competitive price, but are frustrated when they are hit with junk fees for unexpected or unwanted services that have no value to them," said CFPB Director Rohit Chopra." — including those from banks as well as hotels, airlines and other entities — would "immediately start saving Americans collectively billions of dollars in unfair fees" and hold corporations accountable.
The second fee the CFPB addresses can happen when a customer deposits a check that ends up bouncing — despite the overdraft being due to the checkwriter's insufficient funds. The charge is typically $10 to $19 per instance, according to the CFPB. Already this year, many banks have been eliminating overdraft and non-sufficient funds fees or making their policies more consumer-friendly. The CFPB estimates the changes mean $3 billion in savings for consumers.