(The Guardian) Biden targets bank 'junk fees'
Joe Biden spoke at the White House earlier, announcing an effort to remove “junk fees”, charges made by banks for services including overdrafts, or when a cheque turns out not to be valid.
Before the coronavirus pandemic, US banks charged customers around $15bn in junk fees every year.
Appearing with Biden, Rohit Chopra, director of the Consumer Financial Protection Bureau, said: “We’re making progress. Banks across the country are cutting and even eliminating fees, saving families billions. This morning, the CFPB announced more actions to combat illegal and unexpected junk fees. One on surprise overdraft fees, and another on surprise depositor fees. We’re putting companies on notice about their obligations under law. We’re taking enforcement actions like one against a large bank for charging illegal overdraft fees. And customers will see hundreds of millions of dollars in refunds. We also sued a payments company for cramming $300m in extra fees on families who were just trying to sign up their kids for YMCA camps, or were just registering for a charity walkathon in their community.
“And we’re going to continue by finding ways to reduce burdens of other fees like the billions and penalties charged by banks and credit card companies through new rules and guidance. This is real money back in the pockets of American families is good for them. And it’s good for businesses that follow the law.”
Biden said his administration would “lower the cost of everyday living for American families, to put more money in the pockets of middle-income and working-class Americans, to hold big corporations accountable”.
There are, of course, less than two weeks to go before midterms election day, 8 November. Biden’s approval rating is falling and Democrats fear a battering at the ballot box, with Republicans poised to take back the House and maybe the Senate.
Saying “one of the things that I think frustrates the American people is the world’s in a bit of disarray”, Biden told reporters: “A lot of you come from backgrounds like I came from, we’re not poor, just regular folks. But that matters. It matters in your life … So anyway, I’m optimistic, it’s gonna take some time. And I appreciate the frustration in American people.”
Joe Biden spoke at the White House earlier, announcing an effort to remove “junk fees”, charges made by banks for services including overdrafts, or when a cheque turns out not to be valid.
Before the coronavirus pandemic, US banks charged customers around $15bn in junk fees every year.
Appearing with Biden, Rohit Chopra, director of the Consumer Financial Protection Bureau, said: “We’re making progress. Banks across the country are cutting and even eliminating fees, saving families billions. This morning, the CFPB announced more actions to combat illegal and unexpected junk fees. One on surprise overdraft fees, and another on surprise depositor fees. We’re putting companies on notice about their obligations under law. We’re taking enforcement actions like one against a large bank for charging illegal overdraft fees. And customers will see hundreds of millions of dollars in refunds. We also sued a payments company for cramming $300m in extra fees on families who were just trying to sign up their kids for YMCA camps, or were just registering for a charity walkathon in their community.
“And we’re going to continue by finding ways to reduce burdens of other fees like the billions and penalties charged by banks and credit card companies through new rules and guidance. This is real money back in the pockets of American families is good for them. And it’s good for businesses that follow the law.”
Biden said his administration would “lower the cost of everyday living for American families, to put more money in the pockets of middle-income and working-class Americans, to hold big corporations accountable”.
There are, of course, less than two weeks to go before midterms election day, 8 November. Biden’s approval rating is falling and Democrats fear a battering at the ballot box, with Republicans poised to take back the House and maybe the Senate.
Saying “one of the things that I think frustrates the American people is the world’s in a bit of disarray”, Biden told reporters: “A lot of you come from backgrounds like I came from, we’re not poor, just regular folks. But that matters. It matters in your life … So anyway, I’m optimistic, it’s gonna take some time. And I appreciate the frustration in American people.”
