WASHINGTON—The CFPB’s “mischaracterization” of “junk” fees is affecting Americans, according to NAFCU, which sent a letter ahead of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection’s hearing on how fees and tactics are affecting consumers.
In the letter, Vice President of Legislative Affairs Brad Thaler said that while NAFCU “understand[s] the significance of required disclosures and the positive impact they have on consumers’ understanding of financial product pricing, sensible payment guardrails provide for better comparison shopping and improved consumer repayment behavior.
‘Frustration’ Reported
“To claim that fees which must be disclosed are in fact surprise or junk fees is a mischaracterization and one that undercuts the Bureau’s own efforts to develop effective disclosures,” NAFCU added.
According to the letter, NAFCU members often report frustration and confusion over the “volume of required disclosures, despite their best efforts to educate consumers about the importance of these disclosures and the information they contain regarding the terms and fees of products and services.”