Luetkemeyer on Guidance Issued by CFPB on “Junk Fees”
Washington, October 26, 2022
Tags: Financial Services
WASHINGTON, D.C. – Today Congressman Blaine Luetkemeyer (MO-03), Ranking Member of the Subcommittee on Consumer Protection and Financial Institutions released the following statement regarding guidance issued today by the Consumer Financial Protection Bureau (CPFB) on so-called “junk fees.”
“It is important to note that guidance is neither a law nor a rule. It is not enforceable and any attempt to do so would be a violation of the Bureau’s legal authority. However, just a week after the Federal Court ruled that the CFPB’s funding structure is unconstitutional, the White House is doubling down on its efforts to expand the Administration’s reach beyond its legal boundaries. CFPB Director Chopra coined the term ‘junk fees’ in an effort to regulate industries and products he knows do not fall within the Bureau’s jurisdiction. Despite the repeated use of their new favorite term, neither the White House nor the Bureau can provide a legal definition of the term or the statutory authority to pursue these actions,” said Luetkemeyer.
“This is just the latest example of the Administration inventing a problem with the goal of expanding its control over the U.S. economy and shifting blame for the historic inflation and recession created by its disastrous economic policies. Not only will the Bureau’s actions do nothing to change the soaring price of everything we buy, they threaten to increase the cost of or completely eliminate financial products many consumers – particularly low-income families – depend on to make ends meet.”
Background: In March of 2022, Congressman Luetkemeyer and House Financial Services Ranking Member Patrick McHenry sent Director Chopra a letter regarding these so-called “junk fees.” This term was coined by the Bureau in an effort to stigmatize all consumer fees and expand the Bureau’s authority without Congressional approval. Read the full letter HERE.