Consumer watchdog signals broad crackdown on hidden fees for banks, credit cards

The Consumer Financial Protection Bureau is going to crack down on hidden and excessive fees charged by banks and other financial entities.

The federal agency created in the wake of the 2008 financial crisis is seeking input from consumers on junk fees associated with their bank account, mortgage, loan or payment transfer.

Fees people thought were covered by its baseline price, unexpected fees, fees that seemed too high, and fees where it was unclear why they were charged are some of the experiences related to a product or service.

Fees added to hotel bills and concert tickets are well-known examples of such fees, according to the agency's request for information.

The agency said it would use public comments to target new rules, issue guidance to firms, and focus its resources.

The director of the Consumer Financial Protection Bureau said in a statement that many financial institutions obscure the true price of their services by luring customers with attractive offers and then charging excessive junk fees.

Small business owners, non-profit organizations, legal aid attorneys, academics and researchers, state and local government officials, and financial institutions, including small banks and credit unions, are some of the groups the CFPB is interested in hearing from.

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