CFPB Launches Initiative to Save Consumers Billions in “Junk Fees”

The CFPB seeks information from the public on how junk fees— described by the Bureau as exploitative, back-end, hidden, or excessive fees—impact peoples’ lives in an effort to expose junk fees and subject them to competition in an effort to ensure fair pricing.

The CFPB states that junk fees are most popular in deposit accounts, credit cards, remittances, prepaid accounts, mortgages, and other consumer finance loans. According to the CFPB, examples of fees related to mortgages and mortgage delinquency include title insurance, monthly inspection fees, new title fees, legal fees, appraisals and valuations, broker price opinions, force-placed insurance, foreclosure fees, pay-by-phone/internet fees, and other fees that may “price a homeowner out of a home.” The CFPB believes that consumers do not recognize or know about the fees associated with a decision and cannot appropriately shop around, which, in the CFPB’s view, removes the consumer finance providers from competition.

Stakeholders interested in submitting stories, data, and other information about junk fees must do so on or before March 31, 2022.