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View Diary: House Democrats ask Justice Department to investigate banks over debit card fees (71 comments)

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  •  CFPB met with and was aware of Bank of (0+ / 0-)

    America's $5 debit card fee increase in the weeks preceding the actual implementation of the fee. Obama at first said that CFPB had the authority to rescind the fees. But, Obama being Obama, subsequently,  backed off and said the fee increase was legal but "unfair."

    CFPB meets with BAC

    The Obama administration’s new consumer watchdog knew about Bank of America Corp. (BAC)’s plan to impose a $5 monthly debit-card fee at least two weeks before the firm’s announcement ignited a public firestorm[....]
    The lender met with Consumer Financial Protection Bureau officials on Sept. 16 to inform them of the fee, Susan Faulkner, head of consumer banking products, told employees yesterday at a gathering in Delaware[....]

    Could the CFPB have stopped the Bank of America from imposing the fee?

    President Obama said Oct. 3 that his nascent consumer bureau, created by the Dodd-Frank Act, could prevent banks from imposing new fees. He stepped back from those comments in subsequent interviews.

    “The argument they’ve made is, ‘Well, you know what, this hidden fee was prohibited so we’ll find another fee to make up for it,’” Obama said on Oct. 6. “Now, they have that right, but it’s not a good practice. It’s not necessarily fair to consumers.”

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