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NAFCU continues to raise concerns about CFPB’s efforts against ‘junk fees’
NAFCU joined other financial services trades in a letter to the White House’s Office of Information and Regulatory Affairs (OIRA) in response to the CFPB’s request for approval under the Paperwork Reduction Act (PRA) of a proposed information collection, “Junk Fees Timing Study,” raising concerns about the bureau forgoing appropriate processes.
In the letter, the groups urged OIRA to disapprove the bureau’s request for approval of the timing study, noting that it clearly concerns a substantive and policy issue. The groups argued the title of the request strongly suggests that the bureau intends to use the data collected in connection with its on-going policy work to restrict so-called “junk” fees, which includes overdraft fees and credit card fees.
The trades asked ORIA, if it approves the bureau’s request, to impose an explicit term on its approval that prohibits the bureau from using the survey results to inform any bureau rulemaking or other policy action.
In addition, the groups criticized the bureau for seeking comment on the proposed study without providing any other information related to it, aside from a one-sentence abstract outlining the study. Any additional information will not be published until after the May 18 comment period closing, which prohibits the public’s ability to comment on the survey instrument, methodology used to find respondents, and any other aspect of the study, they wrote. The trades said OIRA should require the bureau to resubmit the request through the full PRA process.
NAFCU has led the charge against the bureau’s proposal and mischaracterization of “junk fees” in financial services from the start, with NAFCU President and CEO Dan Berger calling for an end to the CFPB’s “war on Main Street.” The association will continue to hold the bureau accountable for policy making decisions that would impact the 135 million credit union members.