ICBA said it is reviewing new Consumer Financial Protection Bureau guidance requiring banks and credit unions over $10 billion in assets to provide account information requested by customers without charging fees.
Details: The CFPB’s advisory opinion outlines how it will evaluate fees charged for customer requests, such as seeking original account agreements or information about recurring withdrawals from an account. The CFPB issued the guidance under Section 1034(c) of the Consumer Financial Protection Act without a formal notice and comment period and said it does not intend to seek monetary relief for potential violations that occur before Feb. 1, 2024.
ICBA Response: In a national news release, ICBA said it is reviewing the advisory opinion, noting the guidance is another CFPB rulemaking that disregards the Administrative Procedure Act’s notice and comment standards. “While today’s guidance purportedly recognizes community banks’ unique relationship-based business model, ICBA cautions that it must not interfere with community banks’ ability to serve their customers,” ICBA President and CEO Rebeca Romero Rainey said.
Administration Announcements: The guidance was part of a broader Biden administration announcement on “junk fees.” In separate reports, the CFPB said its supervisory work has led to $120 million in refunds for overdraft and non-sufficient-funds fees and that most financial institutions have eliminated NSF fees. Meanwhile, the Federal Trade Commission proposed a rule requiring commercial businesses to include all mandatory fees when telling consumers a price.
Ongoing Pushback: ICBA has repeatedly pushed back against the Biden administration’s campaign against “junk fees,” noting the narrative mischaracterizes practices such as overdraft services and credit card late fees. Responding to President Joe Biden’s State of the Union address earlier this year, ICBA said community bank practices are appropriate and do not constitute surprise “junk fees.”
