Outrageous fees that come out of nowhere are practically everywhere. Call it a fresh-for everyone.
- Your hotel bill includes a surprise “resort” or “destination” fee. It doesn’t matter that you haven’t used the gym, pool, Wi-Fi, or taken part in city tours or other amenities.
- That budget plane ticket you’ve booked online doesn’t seem as appealing after the fees for privileges that were once free are piled high, like selecting a seat or placing carry-on luggage in the overhead compartment.
- Tickets for a hot concert, show or sporting event for which you competed online, do not disclose the high processing fee in addition to the face value of the tickets. The seller has the exclusive right to sell access to the event, so you must pay the fees or stay home.
These and other infuriating fees, collectively known as “junk” fees within some federal agencies, infuriate Americans of all ages. Seniors on fixed incomes may feel the financial stress even more.
Not all charges are illegitimate. Fees can cover staffing and cost of doing business, and businesses are entitled to make a profit.
But some companies are more transparent about disclosing fees to consumers up front, rather than burying them in the fine print of advertisements or contracts. What you pay for — or not — can get spongy.
“Unwanted” costs in the crosshairs
In October, the Biden administration asked federal agencies to find ways to reduce or eliminate hidden fees, charges and surcharges for everything from banking and cable and internet bills to tickets. airplane and concert.
“It’s beyond frustrating to end up spending more than you planned because of random and arbitrary charges,” Lina M. Khan, chairwoman of the Federal Trade Commission (FTC), said in a statement. “No one ever thought a ‘convenience fee’ was practical. Businesses should compete to provide the best quality at the best price, not to see who can charge consumers the most extra expense. »
The FTC is considering rules to crack down on this practice and is seeking public comments until Feb. 8 “on damages caused by junk fees and the unfair or deceptive tactics companies use to impose them.” Some of these charges he considers fraudulent, such as “nitrogen-filled” tires from car dealerships with no more nitrogen than normal air.
The agency wants to improve public access to funeral prices displayed online. A review of funeral service providers’ websites, which took place at the height of the pandemic when many could not arrange funerals in person, found that more than 60% provided little or no price information. .
The Consumer Financial Protection Bureau (CFPB), an independent agency within the Federal Reserve System, issued guidelines in October on surprise discovery and depositor fees it says it violates the Consumer Financial Protection Act.
“Financial institutions should compete to attract customers based on the quality of their products and services and attractive interest rates. Their profit models should not be based on excessive and unpredictable fees,” Deborah Royster, deputy director of the CFPB at the Office for Older Americans, told AARP.
In addition, the US Department of Transportation has proposed a rule aimed at making more transparent additional costs. He wants airlines to refund checked baggage fees when bags are significantly delayed or when services like Wi-Fi don’t work in-flight. Its public comment period is over.
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