The CFPB and FTC have launched an aggressive attack campaign against “junk fees.” The CFPB marketed its latest set of supervisory highlights as the “Junk Fees Special Edition.” The splashy headline is consistent with the agency’s recent focus on fees that it asserts are hidden from the competitive process. In speeches, press releases, and blog posts (and now a single proposed rule to limit credit card late fees), the CFPB has stressed its growing concern with “junk fees." The CFPB even created a section of its website solely devoted to press releases on “junk fees." In October 2022, the FTC voted to issue an Advanced Notice of Proposed Rulemaking (ANPR) seeking to curb companies’ use of “junk fees”—“unnecessary, unavoidable, or surprise charges that inflate costs while adding little to no value”.
On Thursday, April 13, please join us for our next monthly Consumer Financial Services (CFS) Breakfast Briefing series in Mayer Brown’s New York office on “The CFPB and FTC’s War on "Junk Fees" and What You Need to Know.” Our speakers have particular knowledge of how the CFPB and FTC approach issues: Ori Lev served as a CFPB deputy enforcement director, Christopher Leach was an attorney in the FTC’s Division of Financial Practices and Christa Bieker represents companies in examinations and enforcement actions brought by the FTC and CFPB. We hope you can join us.