The CFPB found that consumers are suffering junk fees on car loans, student loans and more.

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Consumers are saddled with countless illegal junk fees on bank deposits, car loans, mortgages, payday loans and student loans, an overview report revealed Wednesday. Consumer Financial Protection Bureau.

Violations include unfair fees or insufficient funds for bank overdrafts; Excessive or improper late fees for auto and student loans, as well as illegally repossessed vehicle and mortgage payments despite payment agreements with customers.

“For years, junk fees have permeated the economy,” CFPB Director Rohit Chopra said in a press release. “Our report highlights several illegal junk fee practices uncovered by the CFPB in the financial services sector.”

In many cases, the companies agreed to fix the problems, the CFPB said. When the companies refused, the CFPB said it had opened investigations for potential enforcement action. The agency said its results reflect tests conducted from July 1, 2022 to February 1, 2023.

In his State of the Union address last month, President Biden pushed for a crackdown on junk fees charged by credit card companies, airlines and resorts, among others.

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Violations include:

► Banks charge multiple funds fees that are not enough for a single transaction.

► Auto loan servicers charge late fees that exceed the amounts allowed in borrowers’ contracts, as well as late fees for customers whose cars are repossessed. Some administrators also charged vehicle recovery fees of up to $1,000, despite average recovery costs of $350.

► Mortgage servicers repeatedly paid home inspectors to go to the wrong address, charging consumers $10-$50 per visit. The servicers also charged bogus private mortgage insurance premiums. And some incurred late fees and penalties during the mortgage forbearance required by the CARES Act in the early days of the pandemic.

►Some payday borrowers whose vehicles have been repossessed for non-payment may have to pay a fee to repossess not only their vehicles but also the personal possessions inside them. Some lenders repossess cars despite prepayment agreements.

The CFPB found that consumers are suffering junk fees on car loans, student loans and more.

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