junk fees

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As part of its junk fees initiative, the CFPB released a new report, “Price Complexity in Laboratory Markets.”  In its press release about the report, the CFPB states that because it “suggests consumers tend to pay more for products that have more complex pricing structures,” the report “has implications for understanding how junk fees impede fair and competitive pricing in markets like auto loans or mortgages, where consumers have to evaluate extended warranties, add-ons, closing costs, and a wide variety of other fees instead of an all-inclusive price.” … Continue Reading

In furtherance of the Biden Administration’s “junk fee” agenda, on Thursday, May 9, 2024, the Consumer Financial Protection Bureau and the U.S. Department of Transportation will host a hearing on airline and credit card rewards programs. CFPB Director Rohit Chopra and Secretary of Transportation Pete Buttigieg will moderate a discussion with the following industry representatives, labor leaders, and consumer advocates:

  1. Scott DeAngelo, Executive Vice President and Chief Marketing Officer, Allegiant Air
  2. Morgan Harper, Director of Policy and Advocacy, American Economic Liberties Project
  3. Andrew Grimm, President and CEO, Apple Federal Credit Union
  4. Sara Nelson, International President, Association of Flight Attendants
  5. Lukas Johnson, Chief Commercial Officer, Breeze Airways
  6. Erin Witte, Director of Consumer Protection, Consumer Federation of America
  7. Robert Patrick Cooper, Senior Vice President and General Counsel, OneUnited Bank

We will attend the joint hearing and blog about it thereafter. … Continue Reading

In furtherance of the Biden Administration’s “junk fee” agenda, on January 17, 2024, the Consumer Financial Protection Bureau issued its proposed rule to amend Regulations E and Z to regulate overdraft services provided by “very large financial institutions” (an insured depository institution or an insured credit union that has total assets of more than $10 Billion and any affiliate thereof, as determined under 12 U.S.C.… Continue Reading

The FTC has extended by 30 days the deadline for submitting comments on its proposed “Rule on Unfair or Deceptive Fees” targeting what the FTC refers to as “junk fees.”  The new comment deadline is February 7, 2024. 

In October 2023, we released an episode of our Consumer Finance Monitor Podcast about the FTC’s proposal for which our special guest was Stacy Cammarano, Staff Attorney in the FTC’s Bureau of Consumer Protection, Division of Advertising Practices, and a lead attorney on the proposal. … Continue Reading

This two-part podcast repurposes our most recent webinar on the latest salvo of actions in the Biden Administration’s initiative directed at combatting so-called “junk fees.”  Launched in January 2022, the initiative shows no signs of abating.

In Part II, we first look at the Consumer Financial Protection Bureau’s advisory opinion on fees charged by large banks and credit unions to respond to information requests, including the Bureau’s discussion of non-fee obstacles such as chatbots that could unlawfully impede consumers’ ability to make an information request. … Continue Reading

This two-part podcast repurposes our most recent webinar on the latest salvo of actions in the Biden Administration’s initiative directed at combatting so-called “junk fees.”  Launched in January 2022, the initiative shows no signs of abating. 

In Part I, we first review the background of the initiative, the range of fees the Administration has labeled “junk fees,” and discuss the Administration’s focus on competition and its related guidance and directives to federal agencies. … Continue Reading

In October 2023, the FTC issued a proposed “Rule on Unfair or Deceptive Fees” targeting what the FTC refers to as “junk fees.”  Our special guest is Stacy Cammarano, Staff Attorney in the FTC’s Bureau of Consumer Protection, Division of Advertising Practices, and a lead attorney on the proposal.  After reviewing how the FTC has previously used its enforcement authority to address “junk fees,” we discuss some of the key issues identified in comments received by the FTC on its October 2022 Advance Notice of Proposed Rulemaking on “junk fees.” … Continue Reading

On November 28, 2023, from 1:00 p.m. to 2:30 p.m. ET, Ballard Spahr attorneys will hold a webinar on the most recent actions of the White House, CFPB, and FTC in the Biden Administration’s assault on so-called “junk fees.”  To register, click here.

Last Wednesday, we published three blog posts about new actions taken by the CFPB and FTC related to the Biden Administration’s war on “junk fees”:

Also last Wednesday, the White House held an event at which President Biden spoke about these new developments as well as developments at other federal agencies to curb “junk fees” charged by companies subject to the jurisdiction of such agencies. … Continue Reading

As part of the White House’s latest round of efforts targeting so-called “junk fees,” the Federal Trade Commission has issued a proposed rule, “Rule on Unfair or Deceptive Fees.”  The proposal follows the FTC’s issuance in October 2022 of an Advance Notice of Proposed Rulemaking to address “junk fees,” a term that was used in the ANPR Notice to refer to “unfair or deceptive fees that are charged for goods and services that have little or no added value to the consumer.” … Continue Reading