© Stocksak. FILE PHOTO – Signage at the Consumer Financial Protection Bureau’s headquarters in Washington, D.C., U.S.A, August 29, 2019, REUTERS/Andrew Kelly
By Hannah Lang
(Stocksak). – Wednesday’s guidance from the U.S. Consumer Financial Protection Bureau stated that unexpected overdraft fees and depositor fees for bounced check are likely to be unfair and illegal practices.
The agency stated that the fees violated the Consumer Financial Protection Act’s prohibition of unfair fees that are unavoidable to consumers.
Overdraft fees are a risk to consumers if they don’t expect it to. However, a fee to a bank to deposit a bounced cheque penalizes someone who might not have been aware of a bad one, according to the CFPB.
“Americans are willing to pay for legitimate services at a competitive price, but are frustrated when they are hit with junk fees for unexpected or unwanted services that have no value to them,” said CFPB Director Rohit Chopra in a statement.
“We are providing guidance on existing law that will help law-abiding businesses seeking to fairly compete and the families they serve.”