CFPB Releases Report on 'Junk Fees'
The Consumer Financial Protection Bureau (CFPB) published a new Supervisory Highlight report on "junk fees" uncovered in bank account deposits, auto loan servicing, mortgage loan servicing, payday lending and student loan servicing found during examinations between July 1, 2022, and Feb. 1, 2023.
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Lawmakers Question Opening SBA 7(a) Program to Nonbanks
In a letter to the Small Business Administration (SBA), Small Business Committee Chairman Sen. Ben Cardin (D-Md.) and Ranking Member Sen. Joni Ernst (R-Iowa) asked the agency to consider "prudent guardrails" before making changes to the 7(a) program. The lawmakers said the SBA's proposed rule to extend 7(a) lending authority to nonbanks could lead to weaker underwriting standards.
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Associations Call for Extension of Credit Card Fee Rule Comment Period
Seven banking-related and credit union associations recently urged the CFPB to extend the comment period for a proposed rulemaking on credit card penalty fees by at least 60 days. "A rush to finalize significant changes to a long-standing rule that has endured through CFPB leadership appointed by both political parties, without providing sufficient time for commenters to provide data and other information on consumer and market impacts, would invite scrutiny and the likelihood of future revision, which would not benefit anyone," said the associations in a letter. In February, the bureau issued a proposed rule reducing the safe harbor for credit card late fees from $30 to $8 and eliminating the higher rate for repeat violations.
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USPS Cash Deposit Rule Implementation Extended
A rule by the U.S. Postal Service (USPS) requiring commercial cash deposits over $500 to be sent via registered mail will take effect on April 30. The rule was originally scheduled to be implemented on March 1.