10/26/2022

Biden Administration to Target Lenders' 'Junk Fees'

The bureau estimates this will save Americans roughly $3 billion annually

With the midterms nearing, President Joe Biden highlighted his administration's push to crack down on so-called junk fees that banks and other companies charge their customers. The announcement comes after months of high inflation has eaten away at Americans' savings and made the economy the top issue for voters.

Biden was joined by Rohit Chopra, the director of the Consumer Financial Protection Bureau, the nation's financial watchdog agency created after the Great Recession. The bureau is targeting overdraft fees charged by banks as well as bad check fees, which are levied against a bank customer when a check isn't valid.

Prior to the pandemic, banks collectively charged their customers roughly $15 billion in overdraft and bounced check fees, according to a bureau estimate. The bureau estimates that its new enforcement push on junk fees will save Americans roughly $3 billion in fees annually.

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