Junk Fees Prey on Vulnerable Communities
The Consumer Financial Protection Bureau wants to put a stop to the unnecessary burden in banking.
Faiz Shakir with More Perfect Union sat down with Rohit Chopra, the Director of the Consumer Financial Protection Bureau, to discuss the agency’s effort to end junk fees.
Junk fees—including ticket charges and bank overdraft fees—create an unnecessary burden for American families. Banks and financial institutions extract billions from working Americans each year via junk fees.
Rohit Chopra is directing the CFPB to put an end to this predatory practice. Chopra says a majority of junk fees provide no service to the consumer or exist at no cost to the corporation charging them.
Junk fees hit people in vulnerable, rural communities the hardest. According to Chopra, 10% of consumers pay for 90% of overdraft fees. “It hits those on who are most on the margins hardest, but when these fees become a core part of the business model, it’s leading many Americans to think, are we just all powerless?”
Now, the CFPB wants your answers. During their open comment period, anyone can contact the CFPB regarding junk fees. Contact the bureau here to hold banks accountable.
