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  • Frank Tian

💸 16 Junk Fee Practices per CFPB

In early 2022, CFPB launched an initiative to target excessive fees charged in consumer finance.


On March 8, 2023, the agency published a 20-page special report to highlight its findings.


The deterrence from supervisory observations and possible regulatory actions could save US consumers multiple billions.


🏦 Banking Account


Unfair Authorize Positive, Settle Negative Overdraft Fees


Assessing multiple NSF fees for the same transaction


🚗 Auto Loan


Overcharging late fees


Charging unauthorized late fees after repossession and acceleration


Charging estimated repossession fees significantly higher than average repossession costs


Unfair and abusive payment fees


🏡 Mortgage


Overcharging late fees


Repeatedly charging consumers for unnecessary property inspections


Misrepresenting that consumers owed PMI premiums


Charging consumers fees that should have been waived


Charging consumers for PMI after it should have been removed


Charging late fees after sending periodic statements listing a $0 late fee


💰 Payday and Title Lending


Splitting and re-presenting consumer payments without authorization


Charging borrowers repossession-related fees not authorized in automobile title loan contracts


Failure to timely stop repossessions, charging fees and refinancing despite prior payment arrangements


👩‍🎓 Student Loan


Charging late fees and interest after reversing payments



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