Massachusetts Proposed Junk Fee Regulations
AFSA’s State Government Affairs team sent a comment letter to the Massachusetts Office of Attorney General (OAG) on the proposed regulations related to Unfair and Deceptive Fees. In the letter, AFSA highlights concerns with the proposed regulations due to their wide-ranging scope and ambiguous wording, leaving the potential impact on financial services uncertain.
The letter lays out recommendations to extend the comment period in 2024, allowing more participants to provide adequate comments. AFSA requests the OAG clarify that commercial transactions are exempt by restricting the definition of “sale” to” “sales specifically intended for personal, family, or household use by a consumer.” Furthermore, it remains uncertain whether the definition of “sale” encompasses or excludes loan or leasing transactions, regardless of whether they are consumer or commercial in nature.
AFSA also cites concerns of disclosures being inconsistent with federal law, suggesting regulation amendments to exclude financial services products from their mandates. Additionally, the letter raises concerns of whether conditional fees would be included within the definition of “total price,” requiring disclosure in accordance with the regulations.
This letter, along with SGA’s other recent letters, can be found on the direct advocacy section of AFSA’s website.
January 11th, 2024 by gmcgurn@afsamail.org
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