Consider This from NPR While The Fate Of The CFPB Is In Limbo, The Agency Is Cracking Down On Junk Fees
Mar 2, 2023
Rohit Chopra, Director of the Consumer Financial Protection Bureau (CFPB), discusses the agency's fight against junk fees that burden consumers financially. He dives into how these hidden charges can accumulate and impact everyday people's financial health. Chopra also addresses the challenges posed by a recent court ruling questioning the agency's funding constitutionality. Additionally, he highlights the disproportionate effects of late fees on low-income individuals and advocates for legislative changes to protect consumers from unfair financial practices.
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CFPB's Constitutional Challenge
- The CFPB's constitutionality is being challenged due to its funding mechanism.
- Its funding from the Federal Reserve, derived from bank fees, is being argued as unconstitutional.
Junk Fees Explained
- Junk fees are unexpected charges that appear during transactions like booking travel or buying tickets.
- President Biden addressed these fees, advocating for their elimination.
Unfair Check Fee
- Rohit Chopra points out a common junk fee: being charged for depositing a bad check.
- Consumers are often penalized even when unaware of insufficient funds.