On September 13, the CFPB General Counsel, Seth Frotman, released prepared remarks on the Bureau’s impact on the lives of financially vulnerable individuals. The speech emphasized how consumer financial laws protect those struggling with basic needs, like food and housing, and how federal laws can prevent companies from taking advantage of vulnerable consumers. Frotman noted the CFPB’s recent focus on combating “junk fees,” which he argued affect low-income individuals disproportionately because “companies often structure their complex, back-end pricing — including fees — in a way that specifically takes advantage of people when they are vulnerable.” Frotman highlighted that these fees, which can include credit card late fees, overdraft fees and “research” or “statement” fees extract billions of dollars from consumers, particularly those with limited resources.

The CFPB proposed new rules in January addressing outdated regulations that allowed for these supposed “junk fees.” The CFPB estimates the proposed changes will save consumers billions of dollars annually and ease financial burdens on low-income households. Additionally, the CFPB has taken steps to ensure that public benefits are not undermined by financial institutions through high fees or discriminatory practices. The Bureau enforces the EFTA and ECOA to protect consumers receiving government assistance and to prevent lenders from discriminating against borrowers with public assistance income.