Personal finance

The Government Needs Your Help Cracking Down on Fees From Banks and Mortgage Lenders

News-This consumer watchdog wants to hear the worst fees youve encountered

If you’re tired of outrageous fees charged by banks, mortgage lenders and other financial institutions, a federal consumer watchdog group wants to hear your story.

The Consumer Financial Protection Bureau (CFPB) just launched a new initiative encouraging people to lodge complaints about the worst fees they’ve encountered. The CFPB — a federal agency established in 2011 to protect and enforce consumer financial laws — says it will use this feedback to crack down on “junk fees” charged by banks, credit unions, credit card companies, mortgage lenders and more, potentially saving Americans billions of dollars in the process.

“Many financial institutions obscure the true price of their services by luring customers with enticing offers and then charging excessive junk fees,” said CFPB Director Rohit Chopra in a press release. “By promoting competition and ridding the market of illegal practices, we hope to save Americans billions.”

Consumers have until March 31 to submit comments about fees to the agency.

If you believe you’ve been charged an excessive or unexpected fee by a financial institution, reach out to the CFPB by filling out this online form or calling (855) 411-2372.

Paying less towards your mortgage each month frees extra cash in your budget.

You could save thousands of dollars in interest over the life of the loan and reduce monthly payments. Select your state below to get started.

What are junk fees?

The CFPB is casting a wide net for what it considers junk fees. Here’s a list of what you can reach out to the agency about:

  • Excessive fees you believe were covered the baseline price of a product or service
  • Fees you thought were too high for the product or service
  • Unexpected fees
  • Instances when you didn’t understand why certain fees were charged

You never know when you might find yourself financially strapped – the good news is you have options.

A Personal Loan can help you mitigate losses and get back on track. Click here to explore your options!

How to avoid bank fees

In addition to reaching out to the CFPB with complaints about excessive fees, it’s smart to be proactive and find ways to avoid fees on your own.

One fee you may have encountered in the past is a bank overdraft fee. Overdraft fees are charged when there isn’t enough money in your account to cover a transaction — often a purchase made with a debit card — but the bank covers it and charges you a fee for doing so.

The average overdraft fee is about $30, according to the CFPB. However, many of Money’s favorite online banks don’t charge overdraft fees. Some major banks, like Capital One and Bank of America, have also recently announced plans to reduce or eliminate overdraft fees.

If you’re thinking about switching banks to avoid overdraft fees and other annoying charges, explore our list of best banks.

In some cases, you may also be able to get certain fees waived just by asking your bank. Our advice is to be polite and request to speak to a supervisor, if needed.

Dollar Scholar

Still learning the basics of personal finance? Let us teach you the major money lessons you NEED to know. Get useful tips, expert advice and cute animals in your inbox every week.

More from Money

© Copyright 2021 Ad Practitioners, LLC. All Rights Reserved.

This article originally appeared on Money.com and may contain affiliate links for which Money receives compensation. Opinions expressed in this article are the author’s alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. For more information, read Money’s full disclaimer.

Get the latest local business news delivered FREE to your inbox weekly.

Consumers have until March 31 to submit comments about fees to the agency.

Source: https://www.stltoday.com/business/investment/personal-finance/the-government-needs-your-help-cracking-down-on-fees-from-banks-and-mortgage-lenders/article_9e1611ec-eb99-55bd-bc26-2c61e3749030.html

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button