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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