APRIL 2023
••• IN THIS ISSUE
> CFPB Uncovers Illegal Junk Fees on Bank Accounts , Mortgages , and Student and Auto Loans
> Servicemembers in the Spotlight : CFPB Finds SCRA Interest Reduction Underutilized by Active Duty Servicemembers
> Late Fees Aren ’ t Always Easy Income : CFPB Proposes Narrowing the “ Reasonable and Proper ” Meaning in the CARD Act
> Avoiding the “ Rinse-Repeat ” Cycle of Regulatory Violations : Wells Fargo
CFPB Uncovers Illegal Junk Fees on Bank Accounts , Mortgages , and Student and Auto Loans
On March 8 , 2023 , the Consumer Financial Enforcement Bureau ( CFPB ) issued a special edition of its Supervisory Highlights targeted at fees it commonly refers to as junk fees . The report was aimed at spotlighting some of the most recent supervisory concerns related to junk fees discovered in deposit accounts and loan servicing markets , such as mortgages , student loans and payday lending . Similar to advisories the CFPB has issued in the past several months , the guidance focused on :
• Scrutinizing identified fees and deeming them stressing , unlawful and exploitative .
• Notable violations of consumer protection laws discovered by field examiners .
• Insights into the harms to impacted consumers .
Doeren Mayhew has provided a high-level summary of discoveries from the CFPB ’ s recent research , as well as key takeaways from the report . Keep in mind , the topics addressed are currently directed at CFPB regulated financial institutions .
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