Senators urge CFPB to stop ‘deceptive’ efforts on fees

As the CFPB moves forward with guidance and rulemakings to limit what it has deemed “junk fees,” including overdraft fees and credit card late fees, Republican members of the Senate Banking Committee wrote to CFPB Director Rohit Chopra to share concerns – which have also been raised by NAFCU – about its “efforts to demonize commonsense incentives that promote financial responsibility.”

NAFCU is leading the charge against the bureau’s regulatory overreach. NAFCU President and CEO Dan Berger recently wrote an op-ed in RealClear Markets urging congressional leaders to hold the CFPB accountable and end the bureau’s “war against Main Street.”

In their letter, the senators explained that these fees are detailed up front in the terms of financial agreements, and “are used for a variety of legitimate purposes, including encouraging consumers to make responsible financial decisions such as balancing their checkbooks and discouraging consumers from paying their bills late.”

“These fees also enable companies to offset the costs of late payments and their associated risks so that they can continue to offer the financial products that people want and need, particularly to the financially vulnerable and those who are trying to build credit,” they wrote. “The CFPB’s efforts to eradicate responsible financial incentives under the guise of consumer aid is deceptive and should have no place in the United States Government.”


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