August 30, 2024

CFPB Report Examines Cash-Back Fees

Cozen O'Connor

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Cozen O'Connor

The CFPB issued a report detailing certain retailers’ practice of charging consumers cash-back fees to access their own money when using a debit or prepaid card.
The report’s key findings include that cash-back fees are costing consumers millions of dollars, certain large retail companies charge cash-back fees while other similarly sized companies do not, cash-back fees are charged even on low pre-set cash withdrawal amounts—commonly between $5 and $50—and consumers with lower incomes or fewer banking options may be more likely to encounter such fees.
The CFPB stated in the report that it will continue to monitor developments related to fees consumers pay for accessing cash and how banks and credit unions make cash accessible to consumers.

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