Urban League of Greater Pittsburgh Joins Congresswoman Summer Lee For Press Conference and Roundtable Discussion with CFPB Director Chopra to Fight Back Against Junk Fees and Protect Low-to Moderate-Income Families

**For Immediate Release**

Kyla Gill, Kyla.Gill@mail.house.gov

Vaibhav Vijay, Vaibhav.Vijay@mail.house.gov

Congresswoman Summer Lee Hosts Press Conference and Roundtable Discussion with CFPB Director Chopra, Local Leaders, and Community Advocates to Fight Back Against Junk Fees and Protect Low-to Moderate-Income Families

[Original article: https://summerlee.house.gov/posts/congresswoman-summer-lee-hosts-press-conference-and-roundtable-discussion-with-cfpb-director-chopra-local-leaders-and-community-advocates-to-fight-back-against-junk-fees-and-protect-low-to-moderate]

Pittsburgh, PA – August 6th, 2024 – Today, Congresswoman Summer Lee joined Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, Allegheny County Executive Sara Innamorato, and other local leaders at the Thelma Lovette Y in Pittsburgh for a press event and roundtable discussion focused on the detrimental impact of junk fees on low- to moderate-income families in the region. The event underscored the urgent need for policy changes to protect consumers from exploitative financial practices. The CFPB, the federal agency that enforces federal consumer financial laws and protects consumers in the financial marketplace, has launched an initiative to save households billions of dollars a year by reducing exploitative junk fees charged by banks and financial companies.

The event kicked off with opening remarks from Nick Smyth, Assistant Attorney General, followed by brief comments from Congresswoman Summer Lee and Director Chopra. Following the press event was a transition to a roundtable discussion, where community members, advocates, and officials engaged in an open dialogue about the challenges posed by junk fees, the impacts these fees have, and possible solutions.

Congresswoman Summer Lee said, “Today’s event highlighted the real, tangible impact that junk fees have on our low- and moderate-income families. These unfair practices disproportionately burden those who can least afford them, and it’s time we take a stand. Junk fees cost American families hundreds, even thousands of dollars a year, adding up to tens of billions of dollars annually. These fees are more than just deceitful—they’re harmful. I am committed to working alongside local leaders and advocates to push for legislative changes that protect our communities and supporting the CFPB in its efforts to rein in excessive junk fees in banking and financial services. In Congress, I will continue to fight for transparent and upfront pricing because it is essential for consumers to make informed choices and budget effectively. That’s why I will soon be introducing a bill designed to eliminate these exploitative practices and bring much-needed transparency to our consumers and to our financial systems.”

“The CFPB is working to rein in the out-of-control junk fees that are draining billions of dollars from people’s pockets,” said Consumer Financial Protection Bureau Director Rohit Chopra. “People in Pittsburgh and across the country are sick and tired of being ripped off, and the CFPB is taking action to stop the spread of these fees.”

Roundtable Attendees

The roundtable discussion included a diverse group of community leaders and advocates who shared their insights and perspectives on the impact of junk fees. Attendees included Ernie Hogan from the Pittsburgh Community Reinvestment Group, Adam DiBuo, Managing Attorney for Housing at Neighborhood Legal Services, Silas Russell from SEIU, Nick Smyth, Assistant Chief Deputy AG, Rosamaria Costello from the Latino Community Center (LCC), John Ukenye from the Urban League, and Susan Kalson, President & CEO of Squirrel Hill Health Center.

Legislative Background

Congresswoman Summer Lee has been a persistent advocate for consumer rights and economic justice. Her recent legislative efforts include:

• Will Soon Introduce the HONEST Act/NO JUNK Act:  This bill is designed to eliminate deceptive pricing practices across various industries. The act requires full disclosure of prices, bans predatory junk fees, and obligates businesses to clearly list all potential fees and their purposes upfront. It also provides consumers the right to contest unjust fees through federal and state enforcement mechanisms.
• End Junk Fees for Renters Act (H.R.4907): Cracks down on junk fee profiteering by landlords, prohibiting the collection of application fees, resident screening fees, and late fees. It also mandates that any fees collected be applied as a credit to next month’s rent.
• Opposition to H.J. Res.122: Sent a letter with CPC and 51 colleagues opposing Speaker Mike Johnson’s legislation, which would invalidate the CFPB’s Credit Card Penalty Fees Rule, reducing late fees from $32 to $8.
• Supported the TICKET Act (H.R.3950): Requires all event ticket sellers to display the total ticket price—including all required fees—in any advertisement, marketing, or promotional materials.
• Supported the No Hidden FEES Act of 2023 (H.R.6543): Prohibits unfair or misleading price advertising for short-term lodging and requires accurate price listings that include all mandatory and resort fees.

About the CFPB:

The Consumer Financial Protection Bureau (CFPB) is an agency dedicated to protecting consumers from unfair, deceptive, or abusive practices by financial institutions. The bureau enforces consumer financial laws, oversees financial institutions, educates consumers on their rights, addresses complaints, and monitors financial markets to ensure a fair and transparent system.

Background Stats

The CFPB’s Consumer Complaint Database revealed significant concerns from Pennsylvania’s 12th District between January 1, 2022, and December 31, 2022:

• 40 complaints on Checking or Savings
• 50 complaints on Credit Cards
• 234 complaints on Credit or Consumer Reporting
• 53 complaints on Debt Collection
• 14 complaints on Money Transfers or Currency
• 19 complaints on Mortgages
• 3 complaints on Personal Loans
• 8 complaints on Prepaid Cards
• 18 complaints on Student Loans
• 7 complaints on Vehicle Loans or Leases

These statistics highlight the widespread impact of financial practices on consumers in the district.

CFPB Actions to Combat Junk Fees

• July 2024: Released a report on junk fees charged by school lunch payment platforms
• April 2024: Took action to combat illegal junk fees charged by mortgage servicers
• March 2024:  Finalized rule to ban excessive late fees on credit cards
• January 2024: Proposed a rule to prohibit banks from charging non-sufficient funds fees on transactions declined in real time at the swipe, tap, or click.
• October 2023: Issued guidance prohibiting large banks/credit unions from charging excessive fees for requesting basic customer service information.
• October 2023: Proposed a rule making it easier for consumers to “break up with their bank,” and ensure that these institutions compete based on service quality.
• October 2022: Issued guidance prohibiting surprise overdraft fees and indiscriminately charging depositor fees to consumers who deposit checks that bounce.

Additional Biden-Harris Administration Actions to Combat Junk Fees

Federal Trade Commission (FTC)

• October 2023: Proposed a rule that would ban businesses across all industries of the economy from charging hidden and misleading fees and require them to show the full price up front. The rule would also require companies disclose up front whether fees are refundable. Companies that fail to comply could face monetary penalties and have to provide refunds to consumers.
• March 2023: Proposed a “click to cancel” rule that requires sellers to make it as easy for consumers to cancel enrollment as it is to sign up.
• June 2022: Proposed a rule to ban junk fees and bait-and-switch advertising by auto dealers, prohibiting deceptive advertising, upfront pricing requirements, and the sale of useless add-ons.

Federal Communications Commission (FCC)

• March 2023: Proposed a rule to require cable providers to display “all-in” prices 
• November 2022: Finalized a rule requiring broadband providers to display “Broadband Nutrition Labels” for consumers that provide basic information about costs of internet service offerings, allowing consumers to easily compare options.

Department of Transportation (DOT)

• 2022: Secured commitments from 9 out of 10 largest airlines to guarantee hotels; 10 airlines to guarantee meals; and 4 airlines to guarantee fee-free family seating (FlightRights.gov)
• August 2022: Issued several proposals that require airlines to promptly refund airline tickets when they cancel/significantly change flights, require refunds for services not delivered, and require fees to be disclosed.