Fintechs Tout Lower Costs as CFPB Takes Aim at Bank ‘Junk’ Fees (1)

Online banking apps, “buy-now, pay-later” services and other fintech innovations will push banks to lower or eliminate “junk fees” even if the CFPB forgoes new regulations, financial trade groups told the regulator.

The Consumer Financial Protection Bureau is conducting a regulatory review of what it refers to as “exploitative junk fees” that banks and financial services providers often attach to checking accounts, credit cards and other products, hiding their true costs.

The comment period on the CFPB’s review closed April 11, with the fintech industry pushing for the bureau to promote competition that would, in turn, lower or eliminate ...