WASHINGTON—
President Biden
on Wednesday highlighted steps his administration is taking to restrict fees imposed on consumers across the economy, from travel to banking, in remarks that come about two weeks ahead of the midterm elections.
Mr. Biden, speaking from the White House complex, said the measures are aimed at giving consumers more financial breathing room, by reducing fees tied to concert tickets, hotel resorts, airfare and cable companies.
His remarks came as the U.S. Consumer Financial Protection Bureau on Wednesday took new steps to target bank overdraft fees. Mr. Biden said the CFPB’s actions would collectively save consumers more than $1 billion in fees each year.
“That’s a lot of money back in people’s pockets,” he said, speaking alongside CFPB Director
Rohit Chopra
and
Lina Khan,
the head of the Federal Trade Commission, an antitrust watchdog.
The event signals White House support for the CFPB a week after a federal appeals court found it is funded through an unconstitutional method, undermining the agency’s work over its nearly 12 years of existence. The agency is expected to appeal the decision, though neither Messrs. Biden or Chopra addressed the case in brief remarks.
Mr. Biden said Wednesday he has directed his administration to reduce or eliminate billions of dollars in additional fees across the economy. He highlighted work at the FTC to crack down on unfair and deceptive fees across all industries, “fees that were never disclosed,” he said. And he said the Transportation Department is developing rules that would require airlines and travel sites to disclose more fees up front.
“We applaud President Biden’s advocacy for fee transparency in every industry, including live event ticketing,” Live Nation Entertainment Inc., the world’s largest concert promoter, said in a statement, adding that it had supported New York’s ban on hidden fees for live-event tickets. “This only works if all ticketing marketplaces go all-in together, so that consumers truly have accurate comparisons as they shop for tickets.”
Banks and other financial institutions typically charge consumers overdraft fees when they make payments that exceed the balance in their checking accounts. Regulators say low-income families tend to incur the fees more than others and that the fees worsen their finances while producing billions of dollars for banks.
On Wednesday, the CFPB issued new guidance warning against what it characterized as surprise depositor fees on consumers who attempt to deposit a check that bounces, even though the recipient has no control over whether the check will clear. The bureau said the fees, usually in the range of $10 to $19, are “likely unfair and unlawful.”
The guidance and Mr. Biden’s comments come as voters and candidates have increasingly expressed concerns about the economy and consumer prices ahead of November’s vote.
The bureau also released guidance that aims to target “surprise overdraft fees” on debit-card purchases, after consumers are told by their bank that they have sufficient funds in their accounts at the time such transactions are authorized. The guidance comes after Regions Financial Corp. agreed to pay $191 million in September to settle CFPB accusations that it charged surprise overdraft fees that harmed its customers.
The CFPB’s actions are the latest in a series Mr. Chopra has taken to examine fees. Banks and conservative lawmakers have pushed back against what they say are overly aggressive moves by the agency. Nevertheless, several large banks have made changes to their fees since his campaign began, citing competitive pressures.
The Bank Policy Institute, a banking group, criticized Mr. Chopra’s moves on Wednesday as “invective-filled guidance, which is legally nonbinding,” and said the bureau should address industry fees through a transparent rule-making process.
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
WASHINGTON—
President Biden
on Wednesday highlighted steps his administration is taking to restrict fees imposed on consumers across the economy, from travel to banking, in remarks that come about two weeks ahead of the midterm elections.
Mr. Biden, speaking from the White House complex, said the measures are aimed at giving consumers more financial breathing room, by reducing fees tied to concert tickets, hotel resorts, airfare and cable companies.
His remarks came as the U.S. Consumer Financial Protection Bureau on Wednesday took new steps to target bank overdraft fees. Mr. Biden said the CFPB’s actions would collectively save consumers more than $1 billion in fees each year.
“That’s a lot of money back in people’s pockets,” he said, speaking alongside CFPB Director
Rohit Chopra
and
Lina Khan,
the head of the Federal Trade Commission, an antitrust watchdog.
The event signals White House support for the CFPB a week after a federal appeals court found it is funded through an unconstitutional method, undermining the agency’s work over its nearly 12 years of existence. The agency is expected to appeal the decision, though neither Messrs. Biden or Chopra addressed the case in brief remarks.
Mr. Biden said Wednesday he has directed his administration to reduce or eliminate billions of dollars in additional fees across the economy. He highlighted work at the FTC to crack down on unfair and deceptive fees across all industries, “fees that were never disclosed,” he said. And he said the Transportation Department is developing rules that would require airlines and travel sites to disclose more fees up front.
“We applaud President Biden’s advocacy for fee transparency in every industry, including live event ticketing,” Live Nation Entertainment Inc., the world’s largest concert promoter, said in a statement, adding that it had supported New York’s ban on hidden fees for live-event tickets. “This only works if all ticketing marketplaces go all-in together, so that consumers truly have accurate comparisons as they shop for tickets.”
Banks and other financial institutions typically charge consumers overdraft fees when they make payments that exceed the balance in their checking accounts. Regulators say low-income families tend to incur the fees more than others and that the fees worsen their finances while producing billions of dollars for banks.
On Wednesday, the CFPB issued new guidance warning against what it characterized as surprise depositor fees on consumers who attempt to deposit a check that bounces, even though the recipient has no control over whether the check will clear. The bureau said the fees, usually in the range of $10 to $19, are “likely unfair and unlawful.”
The guidance and Mr. Biden’s comments come as voters and candidates have increasingly expressed concerns about the economy and consumer prices ahead of November’s vote.
The bureau also released guidance that aims to target “surprise overdraft fees” on debit-card purchases, after consumers are told by their bank that they have sufficient funds in their accounts at the time such transactions are authorized. The guidance comes after Regions Financial Corp. agreed to pay $191 million in September to settle CFPB accusations that it charged surprise overdraft fees that harmed its customers.
The CFPB’s actions are the latest in a series Mr. Chopra has taken to examine fees. Banks and conservative lawmakers have pushed back against what they say are overly aggressive moves by the agency. Nevertheless, several large banks have made changes to their fees since his campaign began, citing competitive pressures.
The Bank Policy Institute, a banking group, criticized Mr. Chopra’s moves on Wednesday as “invective-filled guidance, which is legally nonbinding,” and said the bureau should address industry fees through a transparent rule-making process.
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8