Junk fees in commercial lending are the new target for lawmakers around the country. The topic is being discussed and negotiated in the California legislature as they move forward with other bills that would put more regulation in commercial lending.
At issue are fees that do not have a 'clear service' behind them. So origination fees would be ok, and maybe things like a credit pull, but when you get into fees for processing payments, charging for statements that reflect balances due or interest cost, setting up the ACH, underwriting, professional service fees(maybe with a maximum), then those might be outlawed in addition to any others that are prevalent in the industry.
This will start in states like California but is likely to follow in others given the support it has from people on both sides of the aisle. They agree that steps do need to be taken to reduce the number of junk fees charged to the merchant, often unknowingly until after the funds have been disbursed.
A push against junk fees has already been going on from the CFPB and FTC in regard to the consumer side of things with banks and other financial companies. Now commercial lending will be roped in.
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