Unanticipated Overdraft And Depositor Fees

The Consumer Financial Protection Bureau ("CFPB") has issued Circular 2022-06 ("Circular") alerting financial institutions to avoid conducting business in a manner that subjects consumers to surprise overdraft fees and unexpected depositor fees for bounced checks. An institution that operates in such a manner may be found to be committing an unfair and unlawful practice. The Circular is available here. This is the latest of a series of publications in which the CFPB provided guidance regarding the imposition of fees and the risk of regulatory violations by imposing excessive or unreasonable fees that harm consumers.¹ In its latest Circular, the agency emphasizes that the Consumer Financial Protection Act ("CFP Act") prohibits the imposition of unfair fees that are unavoidable to customers.