In a new op-ed for CU Insight, America’s Credit Unions Chief Advocacy Officer Carrie Hunt called the CFPB’s war on financial fees “bad math and even worse policy.”
Hunt emphasized that credit unions are not charging fees to maximize revenue. Instead, credit unions use fees “to cover the cost of doing business.” She also noted that the bureau’s rule to limit late credit card payments “only serves to punish those who pay on time with fewer products and services, now at higher costs, because of past-due payments from others.”
Additionally, Hunt highlighted issues with the bureau’s proposals related to non-sufficient funds (NSF) fees and overdraft fees. She flagged previous points made by America’s Credit Unions that called out the bureau for crafting a solution in search of a problem, rather than addressing widespread issues. Hunt also dismissed the CFPB’s overdraft proposal, noting that a study from the Federal Reserve Bank of New York revealed “consumers know the outcome of overdraft usage but choose to use it because it’s a more affordable, convenient option than alternatives like payday loans or having a utility shut off.”
“Despite political arguments claiming all fees are ‘junk fees,’ that’s just not the case. The math behind these efforts doesn’t add up. The bureau needs to focus on educating consumers and empowering credit unions to provide valued financial products and services instead of intervening in the market,” Hunt concluded.
America’s Credit Unions is committed to fighting back against the CFPB’s war on financial fees.
