Biden-Harris Administration, CFPB, And FTC Take New Steps To Eliminate "Junk Fees"

On October 11, the Biden-Harris administration, through the Bureau of Consumer Financial Protection (CFPB) and Federal Trade Commission (FTC), announced new actions aimed at cracking down on so-called "junk fees" across all industries.

• The CFPB issued an Advisory Opinion with first-of-its-kind guidance on section 1034(c) of the Dodd-Frank Act. Section 1034(c) generally requires covered insured depository institutions (covered IDIs) to provide consumers upon request with information regarding their accounts for consumer financial products and services in a timely manner. The CFPB's Advisory Opinion explains how the agency will administer the legal requirements under section 1034(c), including how the CFPB will evaluate fees imposed on consumers for making requests of account information. As noted by CFPB Director Rohit Chopra in prepared remarks on a press call on "junk fees," section 1034(c) has never been enforced, but with the issuance of this guidance, the CFPB