CFPB’s Attempt to Eliminate “Junk Fees” Creates Legal Turmoil

The American Banker reports how banks continue to face obstacles from regulations on “unfair” bank fees. President Biden has called for the elimination of bank “junk” fees with regulators seeking to expand a law on the federal prohibition on “unfair, deceptive and abusive acts and practices.” However, the CFPB’s approach to preventing these practices is already attempting to be challenged in court, with trade groups filing a lawsuit stating that the rulemaking exceeds the agency’s authority and fails to adhere to the public rulemaking process. The CFPB’s legal response is expected by the end of November.

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