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League Notes Growing Pressure and Attacks on Fees, CU Business Model


Your League has reported widely on the growing pressure credit unions are facing on the fees they charge. In recent weeks, we’ve seen new fee reporting requirements for some credit unions, a move from the CFPB to eliminate NSF fees, a proposal targeting overdraft fees charged by very large financial institutions, and days ago, CFPB’s issuance of a final rule on credit card penalty fees.

We’ve also seen a growing number of media reports attacking the various fees charged within the financial services industry, including an article this week from Consumer Reports targeting credit unions.

You’ll recall President Biden’s State of the Union Address last year targeted what he termed “junk fees,” noting his Administration would work to address such fees across a number of industries, including banking. Reports this week from various trade publications suggest the industry can expect “junk fees” to make a return appearance in tonight’s SOTU address, with many noting it’s no coincidence that the credit card penalty fee rule was released just days before the President’s speech.

“Your League continues to push back against these measures, many of which we know will negatively impact credit availability, result in higher interest rates across the board, and threaten the credit union business model,” said League Chief Advocacy Officer JT Blau. “Given today’s competitive environment and the national conversation surrounding banking fees, credit unions are justifiably concerned about how we’ll make our business model work in a way that continues to serve the interests of members.”

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