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Is it OK to charge a monthly Returned Mail fee to customers with bad addresses?

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May we charge a monthly “Returned Mail” fee on our customers who have bad addresses that return mail as undeliverable?

It is not a good idea. This is another fee identified by the CFPB as a junk fee late in 2023. They call it an “Unfair Statement Fee” and devoted an entire section to it in a Supervisory Highlights Special Edition. If an institution is no longer attempting to deliver a statement, they are no longer incurring paper and delivery costs. By continuing to charge a monthly fee, they are engaging in an unfair act or practice by charging the junk fee.
Does this sound like something your shop may be doing? Learn the important details in the upcoming 90 minute webinar “Junk Fee Crack Down” on Tuesday, April 30, 2024!
Learn more about Rebekah Leonard’s
Junk Fee Crack Down

First published on 04/17/2024

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