CR’s letter highlights unfair fees consumers find particularly frustrating
WASHINGTON, D.C. – In a comment letter submitted to the Consumer Financial Protection Bureau (CFPB), Consumer Reports highlighted a number of onerous fees charged by financial institutions and urged the agency to rein in predatory and unexpected charges. CR’s letter is in response to an initiative launched earlier this year by the CFPB to examine exploitative junk fees that can obscure the true cost of services and undermine family finances.
“Unfair financial fees can really add up and cause serious hardship for Americans who are living on tight budgets and doing their best to provide for their families,” said Chuck Bell, advocacy program director for CR. “We hope that the CFPB will take action to rein in excessive junk fees that fall hardest on those least able to afford them. The CFPB should use its authority to ensure that financial fees are clearly disclosed in plain language, imposed fairly, and reasonably proportionate to the cost of providing the service.”
CR’s letter features stories shared by its members about financial fees they have found particularly frustrating, including excessive overdraft fees, account maintenance fees, fees to cash a bank’s check, and dormancy and inactive account fees.
A complete copy of CR’s letter can be found here, which includes the over 1,800 comments it collected from its members regarding junk financial fees.
Michael McCauley, michael.mccauley@consumer.org, 415-902-9537