CFPB: “Hello, hello. It’s pay by phone fees and UDAAP”

Recently, the CFPB issued a Compliance Bulletin that provides guidance to credit unions regarding fee assessments for pay-by-phone services and the potential for unfair, deceptive, or abusive acts or practices (UDAAPs) when assessing phone pay fees. The Bulletin also provides guidance to debt collectors about compliance with the Fair Debt Collection Practices Act (FDCPA) when assessing phone pay fees.

The CFPB’s Compliance Bulletin summarizes the current law, highlighting relevant examples of conduct observed during supervisory examinations and enforcement investigations that may violate Federal consumer financial law. Today’s post will provide an overview of some of the CFPB’s fact specific examples.


The CFPB has observed across various consumer financial products and services, many financial institutions provide consumers with multiple payment options. For example, a credit union may provide its members the option of making payments over the phone by using an automated system or speaking with a live representative. A credit union may also provide members the option to make phone payments by using a debit card, electronic check, or to have their payment expedited. A number of financial institutions also use third-party service providers to handle and process the payments.

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