Debate Resurfaces: CFPB's Authority to Tackle Excessive Fees Revisited

Senators on the Senate Banking Committee debated whether the Consumer Financial Protection Bureau (CFPB) has the authority to regulate "junk fees" that impact millions of consumers. Republicans criticized the CFPB for overstepping its jurisdiction by enforcing the Biden administration's crackdown on these charges, while Democrats defended the agency's role in protecting consumers from burdensome costs. The CFPB has recently fined Bank of America $150 million for charging multiple overdraft fees, and has proposed capping credit card late fees. Democrats argued that targeting junk fees aligns with the CFPB's core duties, while Republicans have been seeking to limit the agency's powers.