Ovunc Kutlu
11 October 2023•Update: 11 October 2023
ISTANBUL
US President Joe Biden's administration unveiled new actions Wednesday against junk fees to protect American consumers.
"Junk fees are hidden, surprise fees that companies sneak onto customer bills, increasing costs and stifling competition in industries across the economy," according to a statement from the White House.
"Junk fees cost American families tens of billions of dollars each year and inhibit competition, hurting consumers, workers, small businesses, and entrepreneurs," it added.
The Federal Trade Commission proposed a rule to ban businesses from charging hidden and misleading fees and require them to show the full price up front, which would also require companies to disclose upfront if fees are refundable, according to the statement.
The Consumer Financial Protection Bureau (CFPB), in addition, is taking action to require large banks and credit unions to provide basic information to consumers without charging fees, it added.
Bounced check fees, which can cost $30 - $40 per transaction, are down more than 86% since 2021, saving consumers nearly $2 billion, as nearly two-thirds of large banks have entirely eliminated those fees, according to the CFPB.
The CFPB also secured an additional $140 million in consumer refunds from companies that charged illegal junk fees.
