Rohit Chopra, director of the Consumer Financial Protection Bureau.
Alex Edelman/Bloomberg via Getty Images
The Consumer Financial Protection Bureau on Wednesday reported a broad crackdown on hidden and excessive fees charged by banks, mortgage lenders and other financial entities.
The federal agency, created in the wake of the 2008 financial crisis, seeks consumers’ views on so-called unwanted fees associated with their bank, credit union, prepaid account or credit card, mortgage, loan or transfer of payment.
These experiences with a product or service include: Costs that people thought were covered by its base price; unforeseen costs; fees that seemed too high; and fees for which it was unclear why they were charged, according to the agency’s announcement Wednesday.
Resort fees added to hotel bills and service fees added to concert tickets are “well-known examples” of such fees, according to the agency. information request.
The CFPB will use public feedback to target new rules, provide guidance to businesses and focus its monitoring and enforcement resources, the agency said.
“Many financial institutions mask the true price of their services by enticing customers with enticing offers and then charging excessive fees,” CFPB Director Rohit Chopra, appointed by President Joe Biden, said in a statement. “By promoting competition and ridding the market of illegal practices, we hope to save Americans billions.”
The CFPB is also interested in hearing from small business owners, nonprofit organizations, legal aid attorneys, academics and researchers, state and local government officials, and financial institutions, including small banks and credit unions, he said.
This is a developing story. Check back for updates.