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CUs: Submit feedback on the CFPB’s RFI on excessive fees
NAFCU Tuesday sent members a Regulatory Alert breaking down the CFPB’s request for information (RFI) regarding fees on consumer financial products and services, or ‘junk fees.' The bureau intends to use responses from the RFI to help with "enforcement, supervision, regulatory, and other authorities to create fairer, more transparent, and competitive consumer financial markets."
Of note, the CFPB may consider penalty and late fees, nonsufficient fees, and minimum balances as junk fees. The bureau is interested in hearing from the public about experiences with fees associated with their banks, credit union, mortgage, as well as payment transfers.
Through the Regulatory Alert, NAFCU highlights:
- the CFPB is not initiating a rulemaking at this time, but feedback on this RFI could prompt future rulemaking efforts related to fees;
- the bureau’s focus is on "junk fees" which may be hidden, back-end, or excessive fees, for financial products and services; and
- the CFPB is also concerned by nominal fees that are transparently disclosed to members if the fee shields the true product or service cost.
NAFCU outlines how this topic impacts credit unions and offers several questions to consider when providing feedback.
Comments on the RFI are due to NAFCU March 16 and can be submitted through the alert; comments are due to the CFPB March 31. Subscribe to receive Regulatory Alerts in your inbox.