Pearson Quoted in American Banker on CFPB's Challenge to Junk Fees

What's a junk fee?
– American Banker

Manatt Financial Services Partner Scott Pearson was quoted by American Banker in an article about the Consumer Financial Protection Bureau's (CFPB) inquiry into "junk fees" that are charged on standard financial products like loans, mortgages and credit cards.

The publication mentioned that the CFPB would likely bring enforcement actions against companies to regulate “unfair, deceptive and abusive acts and practices,” or UDAAP. “Bureau challenges to these fees would have to be based on its UDAAP authority, in the much same way it previously attacked products it thought were not suitable for consumers,” said Pearson. Notably, this effort by the CFPB follows an initiative targeting similar payments, such as overdraft fees. “The director has the view that the bully pulpit is one of the more effective tools he has at his disposal,” Pearson stated.

American Banker subscribers can read the full article here.

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