US President Joe Biden has unveiled his administration's latest goal: making hotel, concert ticket and banking "junk fees" illegal.
Some examples of these "unfair hidden fees" given by Biden were bounced check charges, bank overdraft fees, credit card late fees, resort charges at hotels, processing fees for concert tickets and "those huge termination charges to stop you from switching cable and internet plans to a better deal," Biden said Wednesday.
"These are junk fees. They're unfair, and they hit marginalized Americans the hardest, especially low-income folks and people of color. They benefit big corporations, not consumers, not working families," the president said. "Today's actions are going to save consumers more than $1 billion each year."
Here's what's being done now:
- The Consumer Financial Protection Bureau issued guidance on Wednesday that effectively bans surprise overdraft fees when customers have been told they had sufficient funds, and also depositor fees for checks that bounce. The guidance explains that these practices are unfair and unlawful.
- The CFPB is also now developing rules on other banking and credit card fees.
- The Federal Trade Commission last week voted to begin a rule-making process to reduce junk fees across event ticketing, hotels and funeral homes.
Last month, the Department of Transportation similarly proposed a new set of rules proposed by the Biden administration that would see.
Under that proposal, the first time airlines display their flight price to potential customers, they'd have to disclose fees for baggage, changes, cancellations and sitting with your children. They'd also have to provide refunds for services that passengers paid for but didn't receive -- like if the onboard Wi-Fi is busted.