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Banking

Apr. 12, 2024

How banks are navigating a multi-pronged assault on customer fees

The Consumer Financial Protection Bureau (CFPB) has finalized a rule limiting late fees on credit card payments to $8, and the Federal Trade Commission (FTC) is considering a rule limiting overdraft fees to $3. These developments have led to an increase in private litigation against banks, including consumer class actions.

Alexander R. Safyan

Counsel, Michelman & Robinson, LLP

Phone: (310) 299-5500

Email: asafyan@mrllp.com

Shutterstock

The financial services industry is no stranger to regulatory oversight or litigation. However, recent developments in both arenas, particularly relating to customer fees, are causing banks to reevaluate their practices and gear up for an election-year fight.

Last month, as part of the Biden administration’s push to eliminate so-called “junk fees” to consumers, the Consumer Financial Protection Bureau (CFPB) finalized a rule to limit late f...

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