The CFPB defines a "junk fee" as a fee that is deceptive, unavoidable, or disproportionate to the cost of the service it supposedly covers. By the Bureau's estimates, American consumers pay tens of billions of dollars in these fees every year — most without realising they have grounds to push back.
What Counts as a Junk Fee?
Junk fees aren't just fees that feel unfair — they're specific categories of charges that regulators have identified as potentially deceptive or unauthorised:
- Overdraft and NSF fees that exceed what's permitted under Regulation E or your account agreement
- Credit card late fees disproportionate to the actual cost incurred by the lender (the CFPB issued a rule in 2024 aiming to cap these at $8, though that rule is subject to ongoing legal challenge; the standard $30–$41 charges remain disputed)
- Convenience fees charged for paying your own bill — especially when no alternative payment method is offered
- Airline seat selection fees that are mandatory to avoid being separated from your children (DOT rules specifically address this)
- Resort fees, destination fees not disclosed in the advertised price
- Early termination fees in excess of what was disclosed at time of signup
- Subscription charges after a cancellation request was submitted
Bank Fees: Regulation E and Regulation Z
Two federal regulations form the backbone of your rights against bank junk fees. Regulation E covers electronic fund transfers — including overdraft fees — and requires that fee structures be clearly disclosed before you opt in. If your bank charged you an overdraft fee you never opted into, that's likely a violation.
Regulation Z (the Truth in Lending Act) covers credit card billing errors and disputes. Under Regulation Z, you can formally dispute a billing error in writing, and the creditor must acknowledge your dispute within 30 days and resolve it within 90 days. During that period, they cannot report the disputed amount to credit bureaus as delinquent.
Important: A billing dispute under Regulation Z must be submitted in writing to a specific address (look for "Billing Enquiries" on your statement — it's often different from your payment address). A phone call does not trigger your Regulation Z protections.
The CFPB's 2024 Crackdown
In 2024, the CFPB took significant action against junk fees. The Bureau's late fee rule (though subject to ongoing litigation) aimed to cap credit card late fees at $8. The Bureau also issued guidance making clear that banks cannot charge multiple NSF fees on the same transaction.
Multiple major banks — including some of the country's largest — have already settled with the CFPB over junk fee practices, repaying hundreds of millions of dollars to consumers. If your bank charged you fees that fall into these categories in the past few years, you may still have grounds to dispute them.
How to Dispute a Junk Fee
The most effective approach is a formal written dispute that cites the specific regulation the fee may violate. Vague complaints ("I didn't think this fee was fair") get dismissed. Specific citations ("This charge may conflict with 12 CFR Part 1005 Section 17(b) disclosure requirements") get taken seriously.
Your letter should:
- Identify the fee by name, date, and amount
- Cite the regulation that governs or limits that fee
- Request a refund or reversal within 15 days
- State that you will file a CFPB complaint if unresolved
Most banks and financial institutions have dedicated dispute teams that respond specifically to regulatory citations. A letter that looks like it came from someone who knows the regulations is treated very differently from a standard customer service complaint.
ClawBack automates this process. Upload your bank statement or billing document, and our AI identifies fees that may conflict with consumer protection rules and drafts the formal dispute letter citing the exact regulation. You review it, then send it yourself. Try it free →
When to Escalate to the CFPB
If the company doesn't respond or disputes your claim within 30 days, file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint. The CFPB forwards complaints directly to the company and requires a response. Companies that receive CFPB complaints tend to resolve them quickly — not because they're required to give you the money back, but because a CFPB complaint creates a formal regulatory record they'd rather resolve.