In administration campaign on ‘junk fees,’ CFPB targets banks – JP

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Biden said the Transportation Department is working on rules that would require airlines and travel sites to disclose fees up front for items such as sitting next to one’s child, checking baggage or changing a ticket. He also said the Federal Communications Commission is writing a rule to require internet companies to disclose fees.

Republicans and the banking industry criticized the move by the agency, saying the CFPB should have gone through the formal rulemaking process, including seeking public comment, instead of issuing guidance. 

“It’s no surprise that an out-of-control and unaccountable agency — which the Fifth Circuit recently ruled is unconstitutional — has chosen to sidestep the congressionally mandated rulemaking process to change the rules of the road,” Sen. Patrick J. Toomey, R-Pa., said in a statement, citing a decision from a panel of the U.S. Court of Appeals for the 5th Circuit that this month found the CFPB funding structure violated the Constitution. Toomey, who is retiring at the end of this year, is the ranking Republican on the Senate Banking Committee.

Greg Baer, Bank Policy Institute CEO, likewise took issue with the agency’s methods. 

“The CFPB has clear authority to define prohibited fee practices through notice-and-comment rulemaking, but instead continues to rely on invective-filled guidance, which is legally non-binding but which the CFPB has a history of improperly enforcing through the non-public examination process and threats of enforcement action,” he said in a statement.

Source
Las Vegas News Magazine

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