So today the Biden Administration announced that President Biden would be meeting with the Chair’s of the Consumer Financial Protection Bureau or CFPB and the Federal Trade Comission or FTC will be cracking down on company’s ability to charge customer’s known as junk fees. According to the White House:
“The CFPB is taking action to require large banks and credit unions to provide basic information to consumers without charging fees—meaning no more fees for basic services like checking bank account balances, obtaining a payoff amount for a loan, or getting account information needed for applications.”
In addition the White House also said this:
“The FTC is proposing a rule that, if finalized as proposed, would ban businesses from charging hidden and misleading fees and require them to show the full price up front. The rule would also require companies disclose up front whether fees are refundable. This would mean no more surprise resort fees at check out or unexpected service fees to buy a live event ticket. The rule would apply to industries across the economy, including event tickets, hotels and lodging, apartment rentals, car rentals, and more. Under the proposed rule, companies that fail to comply could face monetary penalties and have to provide refunds to consumers.”
“Junk fees cost American families tens of billions of dollars each year and inhibit competition, hurting consumers, workers, small businesses, and entrepreneurs. Research shows that fees charged at the back-end of the buying process make it harder to comparison shop for the best deal and lead to consumers paying upward of twenty percent more. Junk fees also make it hard for honest businesses to compete, stifle innovation, and hurt small businesses.”
This is great to hear because for too long company’s have gotten away with these unnecessary junk fees which have costed Americans billions of dollars. So great on the Biden Administration for working with the FTC and CFPB to finally stop company’s from imposing junk fees on consumers.
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