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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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