HUFFPOST
As President Joe Biden’s administration moves to ban so-called “junk fees,” a new study has found that the banks reliant on these hidden charges overwhelmingly operate in low-income parts of the country.
The study from the progressive public interest group Accountable.US looked at the 20 banks in the United States that generate the largest share of their income from service charges. It found nearly 60% of their branches are located in counties where the poverty rate is higher than the national average, and 72% of their branches are in counties where the median income is lower than the national average.
The Consumer Financial Protection Bureau announced a broad review of “junk fees” ― such as fees for late payment, ATMs and overdrafts ― in January 2022. Biden picked up the baton last week, appearing alongside CFPB Director Rohit Chopra to announce a new rule sharply limiting credit card late fees.
And he continued the message during Tuesday night’s State of the Union…
