Consumers Get $140M in Refunds for Illegal Fees

CFPB oversight leads to refunds of illegal banking fees

The Consumer Financial Protection Bureau (CFPB) announced that as a result of the agency's oversight and enforcement, banks have refunded $140 million to consumers this year. The refunds represent fees paid by consumers that the CFPB deemed to be "junk fees" or otherwise illegal charges.

“The CFPB continues to uncover junk fee scams that violate the law and undermine consumer trust,” said CFPB Director Rohit Chopra. "We will continue to combat the illegal fees cropping up in consumer finance markets."

Among the charges identified in the CFPB investigation were fees for fake paper bank statements. Some institutions charge customers monthly fees for sending paper bank statements. CFPB examiners found instances where banks charged fees for statements they never actually printed or mailed.

The CFPB also found that some banks have a regular practice of "double-dipping" on insufficient funds fees (NSF). The banks will charge an NSF fee more than once for a single transaction, in violation of the law. The CFPB criticized payment processing service providers who allow banks to break the law in this way and called them out in the report.

Photo byDmytro DemidkoonUnsplash