What the Biden Administrations Junk Fees Initiative Means for the Consumer Financial Services Industry: A Look at the Fees Under Attack, Part I
The Biden Administration has launched an initiative directed at combatting so-called \u201cjunk fees,\u201d with the CFPB and FTC leading the Administration\u2019s efforts. In Part I of this two-part episode, we first discuss the various definitions offered by the White House, CFPB, and FTC for what constitutes a \u201cjunk fee\u201d and the types of fees they have labeled \u201cjunk fees.\u201d We then discuss the CFPB\u2019s credit card late fees proposal and criticisms of the proposal set forth in comment letters. We conclude with a discussion of guidance on overdraft and non-sufficient funds fees issued by the CFPB, OCC, and FDIC and by state regulators and CFPB enforcement activity related to overdraft and NSF fees.
Alan Kaplinsky, Senior Counsel in Ballard Spahr\u2019s Consumer Financial Services Group, leads the discussion, joined by John Culhane, a partner in the Group, and Kristen Larson, Of Counsel in the Group.