The Consumer Financial Protection Bureau (CFPB) is alerting major U.S. banks about the practice of charging excessive fees for basic customer services, such as providing account information.
This advisory is part of a broader initiative against junk fees led by the White House and references a federal law from 2010 that mandates large banks and credit unions to deliver complete and accurate account information upon request by account holders.
The CFPB’s market monitoring and public feedback indicate that some banks impose charges for essential information necessary for resolving account issues or managing finances. Identified junk fees include charges for sending paper statements—many of which are neither printed nor mailed—unnecessary add-on products for fully paid auto loans, and inefficient international money transfers.
The bureau is in the process of obtaining refunds totaling $140 million for affected consumers, with $120 million attributed to unexpected overdraft fees and double charges for non-sufficient funds.
Additionally, the CFPB is preparing to propose a new rule that would require financial companies to enable customers to securely and reliably share their banking transaction data with other institutions. This rule, if finalized, aims to facilitate easier transitions for customers wishing to switch banks or manage accounts across multiple providers, according to the White House.
CFPB director Rohit Chopra emphasizes, “While small relationship banks pride themselves on customer service, many large banks create barriers and impose junk fees for answering basic questions. Federal law still obligates the largest banks to respond to customer inquiries completely, accurately, and in a timely manner.”