Jenny Lee Quoted in American Banker: CFPB Launches Broad Review of Consumer Banking Fees
The article discusses the Consumer Financial Protection Bureau's recent launch of its broad review of consumer banking fees. Banks and credit card issuers are required to abide by the Credit Card Accountability Responsibility and Disclosure Act, a 2009 law that puts caps on late fees and other charges. Fintechs, however, are not subject to the same standards as banks. The bureau could file an enforcement action based on the size of a fee, how it is communicated or collected.
“This would cover banks and nonbanks including buy now/pay later products and novel forms of credit from fintechs,” said Jenny. “This is very broad covering any kind of consumer finance product including student lending, mobile apps, mortgage banks and brokers. There are multiple outcomes that may arise out of this effort including rulemaking, enforcement, public guidance, bulletins and further market research.”