All articles tagged with #junk fees
New York City Mayor Zohran Mamdani has begun his term by signing executive orders to combat junk fees and hidden subscription costs, aiming to protect consumers from deceptive business practices and improve affordability in the city.
New York City Mayor Zohran Kwame Mamdani issued Executive Order 09 to combat hidden junk fees by establishing a Citywide Junk Fee Task Force, which will coordinate efforts across city agencies to promote transparency, enforce compliance, and propose legislation to protect consumers from deceptive pricing practices.
A Senate subcommittee report reveals that US airlines have earned over $12 billion from "junk fees" related to seat selection and carry-on bags between 2018 and 2023. The report criticizes airlines for charging extra for seat selection, which was previously included in ticket prices, and for incentivizing staff to enforce carry-on bag fees. The Biden administration has been pushing for stronger consumer protections, including automatic refunds for canceled flights and proposed rules to eliminate seat-selection fees for families. Airlines defend these fees as part of a model that makes air travel more affordable.
The Consumer Financial Protection Bureau (CFPB) has initiated a public inquiry into the rising junk fees associated with mortgage closing costs, which have increased by over 36% from 2021 to 2023. The CFPB aims to understand the reasons behind these cost increases, identify who benefits from them, and explore ways to reduce these fees to make homeownership more affordable. The inquiry seeks input from the public, including borrowers and lenders, to inform future policy and regulatory actions.
Travelers are increasingly facing hidden junk fees such as transaction, convenience, and resort fees, which have proliferated despite government efforts to curb them. These fees are highly profitable for businesses, leading to resistance against regulatory measures like the Department of Transportation's requirement for airlines to quote all-in prices. To avoid these fees, travelers should read the fine print, join loyalty programs, and choose fee-free companies. If charged, they should contest the fee, avoid the business in the future, and warn others.
Despite their complaints about Americans' financial struggles, Republicans are pushing to repeal a Consumer Financial Protection Bureau rule that reduces credit card late fees, arguing that it will harm responsible consumers and shift costs. Critics argue that the new limits would benefit consumers, especially those living paycheck to paycheck. Analysis shows that Republicans on the committee have received significant funding from industry groups opposing the rule. The proposed policies to eliminate junk fees and increase rate transparency are popular among consumers but face opposition from Republicans.
The Biden administration is taking aim at "junk fees" for college students and student loan borrowers, targeting four specific types of fees: student loan origination fees, college banking fees, automatic charges for textbooks, and leftover money in student meal plans. The administration aims to end these fees and provide more transparency for students, building on previous efforts to make the cost of college more transparent and prevent schools from withholding transcripts.
President Biden's crackdown on "junk fees" is criticized by experts who argue that it is a distraction from larger economic issues such as high inflation and government spending. The administration's focus on junk fees is seen as an attempt to deflect responsibility for the economic turmoil caused by policies like the American Rescue Plan and the Inflation Reduction Act. Critics argue that the crackdown on junk fees may not ultimately save Americans money and could lead to increased costs in an inflationary environment.
The Biden administration has announced a rule to cap all credit card late fees at $8, aiming to end what it calls junk fees and save Americans up to $10 billion a year. President Biden highlighted this proposal as part of efforts to reduce costs for Americans, along with forming a strike force to crack down on unfair pricing in various sectors. However, the move has faced criticism from some lawmakers and industry representatives, who argue that it could lead to higher interest rates and decreased access to credit. The administration's broader efforts to eliminate junk fees have not significantly boosted Biden's approval ratings on economic leadership, and concerns are rising over growing credit card debt and delinquency rates.
The Biden administration has finalized a rule capping most credit card late fees at $8, aiming to save 45 million Americans an estimated $220 annually. This move follows previous action to reduce overdraft fees charged by banks. President Biden has made cutting hidden "junk fees" a priority, estimating that the administration's actions will reduce over $20 billion in such fees annually across various industries. Additionally, a new federal strike force on unfair pricing has been announced, and the Federal Communications Commission proposed a rule to ban "bulk billing" arrangements for internet, cable, or satellite services.
The Biden administration has proposed a rule to cap all credit card late fees at $8, aiming to end what it calls junk fees and save Americans up to $10 billion a year. The Consumer Financial Protection Bureau's new regulations will set a ceiling of $8 for most credit card late fees or require banks to justify charging more. This is part of a broader effort to reduce costs for Americans, with the White House forming a strike force to crack down on unfair pricing in various sectors. Additionally, the Agriculture Department has finalized a rule to stop deceptive contracts by meat processors and ban retaliation against small farmers and ranchers.
The Federal Trade Commission's ban on dealer junk fees, part of the Combating Auto Retail Scams (CARS) rules, has been temporarily paused after the National Automobile Dealers Association and the Texas Automobile Dealers Association filed a petition in the Fifth Circuit Court of Appeals. The legal battle revolves around whether the FTC has the authority to impose the rule. While dealers have succeeded in delaying the implementation, the order for postponement indicates that the ban could still take effect in the future, potentially leveling the playing field for consumers and dealerships.
The Federal Communications Commission (FCC) has voted to move forward with a proposed rule that would eliminate early termination fees and require cable and satellite providers to give subscribers a prorated credit or rebate for the remaining days in their billing cycle upon cancellation. The rule aims to address consumer frustration with "junk fees" and is part of President Joe Biden's initiative to reduce or eliminate such fees across various services. The FCC will seek public feedback before issuing a final decision.
President Biden delivered remarks on protecting Americans' retirement security, highlighting the need to crack down on unfair and deceptive junk fees that burden families' budgets. He emphasized the importance of promoting competition and lowering costs for families, and announced additional actions to eliminate junk fees in retirement savings. The Department of Labor is proposing a new rule that would require financial advisors to act in the best interest of their clients, closing loopholes and penalizing those who breach their fiduciary duty. The goal is to protect workers, save for retirement, and ensure fairness in the economy.
The Federal Trade Commission (FTC) is reportedly considering excluding car dealerships from its proposed rules that aim to ban hidden and misleading fees, known as junk fees. The rules would require businesses in various industries to show the full price upfront and face penalties for non-compliance. However, car dealerships may be exempt if the FTC finalizes provisions in its Motor Vehicle Dealers Trade Regulation Rule. The National Automobile Dealers Association argues that the junk fee proposal is overly broad and conflicts with existing regulations.