Time To Tackle ‘Junk Fees’

You just bought those two concert tickets at $200 each. You go to check out … only to find that your real price is $250 each thanks to hidden fees.

A recent survey by Consumer Reports found that most Americans have been confronted with hidden fees, and 96% find them to be very annoying.

A report released by the office of Pennsylvania U.S. Sen. Bob Casey described it this way:

“Consider searching for a coat online and finding that Cheap Gear Shop sells it for $50, while Honest Clothes Mart sells the same product for $60. (A mom), after entering all of her billing and shipping information, finds that Cheap Gear Shop requires a $7.50 ‘delivery fee.’ Cheap Gear Shop also charges a 4% ‘credit card processing fee’ … and a 5% ‘online service fee.'”

As Casey pointed out, the coat goes from $50 to $62; the other merchant selling for $60 likely lost out on a sale due to misleading pricing.

Many American consumers have also been hit with bank overdraft fees from $25 to $40. It’s estimated that the country’s largest banks take in $8 billion in overdraft fees annually.

The Consumer Financial Protection Bureau has proposed rules that would limit overdraft fees. That’s a good start.

Consumers deserve honest and upfront pricing for whatever they buy. It’s time to get this done.


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