CFPB Ends Big Bank 'Junk Fees'

CFPB guidance would end fees for basic customer service

The Consumer Financial Protection Bureau (CFPB) is taking steps to end so-called "junk fees" charged by large banks (those with $10 billion or more in assets).

The CFPB issued guidance that prohibits charging fees for basic customer service, such as requesting written documentation of account status or written copies of account agreements. The guidance also gives banks until the end of February 2024 to come into compliance before fines or penalties will be assessed for violation of the new rule.

“While small relationship banks pride themselves on customer service, many large banks erect obstacle courses and impose junk fees to answer basic questions,” said CFPB Director Rohit Chopra. “While the biggest banks have abandoned the relationship banking model, federal law still requires them to answer certain customer inquiries completely, accurately, and in a timely manner.”

The CFPB says its market monitoring made it aware that some large banks charge customers for basic information that is critical to fix problems with their bank account or to manage their finances.

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