News & Analysis as of

Convenience Fees

Troutman Pepper Locke

Texas Senate Bill 1736 Proposes Allowing Convenience Fees for Electronic Motor Vehicle Payments

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On February 27, Texas State Senator José Menéndez (D) introduced Senate Bill 1736, a piece of legislation aimed at regulating convenience fees associated with electronic payments for motor vehicles. SB 1736 would allow such...more

Holland & Knight LLP

FTC Final Rule Targets Hidden Fees in Live-Event Ticketing and Short-Term Lodging

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The Federal Trade Commission (FTC) has finalized its long-anticipated Rule on Unfair or Deceptive Fees (Final Rule), targeting hidden mandatory fees and ensuring transparent pricing disclosures to consumers. Unlike the Notice...more

Venable LLP

A Variety of Fees and Surcharges Implicated in Early Cases Enforcing California’s Honest Pricing Law

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Since July 1, when California’s “Honest Pricing Law” or “Hidden Fees Statute” became effective, the plaintiffs’ bar has filed more than a dozen complaints alleging violations of the statute....more

Alston & Bird

CFPB and FTC Amicus Brief Signals Stance on “Pay-to-Pay” Fees under FDCPA

Alston & Bird on

What Happened? On February 27, the Consumer Finance Protection Bureau (CFPB) and the Federal Trade Commission (FTC) filed an amicus brief in the 11th Circuit case Glover and Booze v. Ocwen Loan Servicing, LLC arguing that...more

Troutman Pepper Locke

Massachusetts AG Proposes New Regulations Against Hidden “Junk” Fees

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While the federal government’s campaign against hidden “junk” fees intensifies, state attorneys general (AGs) have long been contesting concealed costs as unfair or deceptive — especially in the absence of sufficient...more

Orrick, Herrington & Sutcliffe LLP

District Court approves $2.8 million settlement in FDCPA convenience fee class action

On December 22, the U.S. District Court for the Southern District of Florida granted preliminary approval of a $2.8 million settlement in an FDCPA class-action suit resolving allegations that convenience fees were charged...more

Troutman Pepper Locke

Keeping Up With the Bureau Episode 4: Hot Topics in Collections: Fees, Reg F Landscape, and What’s Next - The Consumer Finance...

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Please join Consumer Financial Services Partner Stefanie Jackman and her guests and colleagues James Trefil and Jonathan Floyd in the fourth and final episode of a special four-part series on recent developments at the...more

Hudson Cook, LLP

CFPB, State Regulators, and Courts Take Aim at Convenience Fees

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The first half of 2022 has seen a flurry of state and federal activity attempting to reign in "convenience fees"—fees charged by a creditor, debt collector, or third party to a consumer for making a payment via some means...more

BCLP

CFPB guidance on pay-to-pay fees impacts consumer loan agreements

BCLP on

Consumer debt collectors may not be permitted to charge consumers “convenience fees” for card payments, which the Consumer Financial Protection Board (the “CFPB”) calls “pay-to-pay” fees, unless the underlying loan agreement...more

Hudson Cook, LLP

CFPB, State Regulators, and Courts Take Aim at Convenience Fees

Hudson Cook, LLP on

The first half of 2022 has seen a flurry of activity at the state and federal level attempting to reign in "convenience fees" - fees charged by a creditor, debt collector, or third party to a consumer for making a payment via...more

Troutman Pepper Locke

CFPB Issues Advisory Opinion ‎Regarding Convenience Fees

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On June 29, 2022, the Consumer Financial Protection Bureau (“CFPB”) issued an advisory opinion stating its view that the Fair Debt Collection Practices Act (“FDCPA”) prohibits debt collectors from collecting any amount,...more

Troutman Pepper Locke

Convenience Fees: Why You Need to Pay Attention? - The Crypto Exchange Podcast

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In the first episode of The Crypto Exchange, Troutman Pepper Consumer Financial Services Partner Ethan Ostroff welcomes his colleagues Keith Barnett and Carlin McCrory to discuss recent developments with convenience fees in...more

Sheppard Mullin Richter & Hampton LLP

CFPB Advisory Opinion: Pay-to-Pay, “Convenience” Fees Prohibited by FDCPA

On June 29, the CFPB issued an advisory opinion affirming that the Fair Debt Collection Practices Act (FDCPA) and Regulation F prohibit debt collectors from collecting pay-to-pay or “convenience fees” imposed for making a...more

Troutman Pepper Locke

Recent CFPB Advisory Opinion Puts Pay-to-Pay Fees in Crosshairs

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“Convenience” fees charged to consumers for the use of certain debt payment options have come under increased scrutiny, as regulators have sought to limit charges and other back-end fees that may come as a surprise to...more

Wiley Rein LLP

Wiley Consumer Protection Download (July 12, 2022)

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Regulatory Announcements- CFPB Issues Advisory Opinion on FCRA Permissible Purposes for Providing Consumer Reports. On July 7, the CFPB issued an Advisory Opinion on the Fair Credit Reporting Act (FCRA) that outlines...more

Cozen O'Connor

CFPB Advisory Opinion Bans Debt Collectors from Charging Unauthorized Convenience Fees

Cozen O'Connor on

The CFPB issued an Advisory Opinion affirming the agency’s position that federal law generally prohibits debt collectors from charging “convenience fees” on consumers making payments, and providing guidance to the fees that...more

Venable LLP

CFPB Warns Debt Collectors of Illegal Pay-to-Pay Fees

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The Consumer Finance Protection Bureau ("CFPB") issued an advisory opinion warning debt collectors that they may be collecting illegal fees from consumer-borrowers. Specifically, the Bureau has interpreted Section 808(1) of...more

Bradley Arant Boult Cummings LLP

CFPB Issues Advisory Opinion Clarifying Its Views on When Debt Collectors Can Charge Consumers “Convenience Fees”

The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion on June 29, 2022, clarifying its view as to the legality under the Fair Debt Collection Practices Act (FDCPA) of “convenience fees” for optional...more

Ballard Spahr LLP

CFPB issues advisory opinion on permissibility of “convenience fees” charged by debt collectors subject to the FDCPA

Ballard Spahr LLP on

The CFPB has issued an advisory opinion that addresses when the Fair Debt Collection Practices Act permits a debt collector to charge “pay-to-pay” or “convenience fees,” such as fees imposed for making a payment online or by...more

Troutman Pepper Locke

CFPB Targets Convenience Fees in Latest Advisory Opinion

Troutman Pepper Locke on

On June 29, the Consumer Financial Protection Bureau (CFPB or Bureau) issued an advisory opinion focused on consumer debt collectors and the convenience fees they charge for some payments, such as online or by phone....more

Seyfarth Shaw LLP

CFPB Concludes Most Convenience Fees Charged by Debt Collectors Violate the FDCPA

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Following its recent “initiative” and request for information to reduce “exploitative junk fees,” the Consumer Financial Protection Bureau (“CFPB”) has on June 29, 2022 released an advisory opinion. The opinion concludes that...more

Alston & Bird

Maryland Regulator Puts Lenders and Servicers on Notice Regarding the Assessment of So-Called “Convenience Fees”

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A&B Abstract: On May 12, 2022, the Maryland Office of the Commissioner of Financial Regulation (the “OCFR”) issued an Industry Advisory (the “Advisory”) “put[ting] [the] industry on notice” of the recent decision issued by...more

Troutman Pepper Locke

An Inconvenient Decision on ‎Convenience Fees

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Last month, the Fourth Circuit Court of Appeals rendered a decision regarding convenience fees in Alexander v. Carrington Mortgage Services, LLC, 23 F.4th 370 (4th Cir. 2022), which potentially spells trouble for loan...more

Fuerst Ittleman David & Joseph

Florida Supreme Court Makes Clear that Bargain-for-Exchange is a Defense to Unjust Enrichment

On February 3, 2022, the Florida Supreme Court issued its opinion in Pincus v. American Traffic Solutions, Inc. clarifying that under Florida law, where a plaintiff has received adequate consideration in exchange for a...more

Ballard Spahr LLP

Fourth Circuit rules mortgage servicer violated Maryland Consumer Debt Collection Act by charging convenience fees for phone or...

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The U.S. Court of Appeals for the Fourth Circuit recently ruled that a mortgage servicer violated the Maryland Consumer Debt Collection Act (MCDCA) by charging a $5 convenience fee to borrowers for monthly payments made by...more

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