This week, President Joe Biden hit the nail on the head during his State of the Union address by addressing an issue that concerns the American consumer: the payment of hidden fees in a series of transactions that ultimately increase costs to the detriment of the pocket of consumers. users.
“No one should have to pay an extra $50 to sit next to their child on the plane, or pay a surprise ‘resort fee’ for a hotel stay, or pay $200 to cancel their cable plan or pay service fees. bulky to buy concert tickets,” said the president in his report to the nation last Tuesday.
And he is absolutely right. For the wealthy this may not make a dent, but for the average worker who wants to enjoy a show, a sporting event, or who spends the whole year saving to organize a vacation with his family, every dollar counts.
Consumers should be able to change their internet, cable or cell phone plan without the early termination penalty charged by some companies.
That’s why we support the Junk Fee Prevention Act, which to this day sits on congressmen’s desks.
Congress has an opportunity to prevent hotels, airlines, cable and Internet companies, and Internet ticket sellers from ripping off Americans. Yes, because these hidden charges are nothing more than deceptive rates. As Biden put it, “consumers are tired of being played for fools.”
According to a White House report – presented in October of last year – these fees can also create an uneven playing field for companies, making companies that set prices fairly and transparently appear more expensive than their rivals.
As early as last fall, the Consumer Financial Protection Bureau has been taking a closer look at certain fees that take customers by surprise.
That’s why he recently proposed a new rule that prohibits banks from charging sudden overdraft fees on debit transactions and reduces typical late payment fees from about $30 to $8, saving consumers up to $9 billion a year. according to the White House.
But without a doubt, having a law that attacks the root problem is the best way to defend against this assault on the pockets of consumers who already have enough with price increases.
Congress has to finish the job and protect customers who are victims of a predatory rate system.