[ad_1]
The White House has proposed cracking down on junk fees. Here’s how to avoid them
The Biden administration has proposed a new Federal Trade Commission rule that would require more transparency from companies when it comes to these fees
Updated: 12:45 PM EST Nov 5, 2023
How much are your monthly bills? And after they’re all paid, how much do you have left for necessities? It’s enough, it’s enough. Is there enough left over just to give you *** little bit of breathing room? Well, these junk fees suck up all that breathing room among other things. Now, think of today, how many folks are asking how much more do they have to pay to cover those hidden junk fees that really add up? You know, over the past two years, my administration has taken with the help of the members of congress. *** number of steps to crack down on unfair and deceptive junk fees in banking, hotels, concert airlines, retail housing should be re rental housing, cable, internet, uh, healthcare, *** whole range of issues. *** whole range of them. For example, two summers ago, if your flight was canceled or delayed, almost no major airline guarantee anything other than costing you *** fee to rebook that even if it was their fault, you had to pay *** fee to rebook. Now, 10 airlines rebook for free and I, I’m looking to get the law passed so none of them can I all have to do that. And that, that’s *** win for consumers. O other companies have also responded to my call for action and adopted so-called all in upfront pricing. That’s where companies fully disclose their fees upfront when you start, when you start shopping. And uh and there’s no real surprise at the end when you check out this summer, I hosted business leaders at an event to announce the voluntary changes that companies like ***, *** Airbnb dice and others were making to provide customers with an all in upfront pricing. So there’s no surprise, tens of millions of Americans have already benefited from this and that’s progress today. I’m proud to announce that my administration has taken our most comprehensive action ever to eliminate junk fees and then, and, and fees and industries and sectors across the board across the entire economy. You know, if these rules are finalized, they won’t just be voluntarily, they’ll be made mandatory mandatory, but we do more than embarrass the company to make them mandatory. But first, here’s how the Federal trade Commission is proposing *** new rule that would ban hidden fees across the economy and require companies to show consumers the all in pricing upfront upfront. That includes what these fees are for, how much they amount to in full. And whether they are refundable. Research shows that without without realizing that folks can end up paying as much as 20% more because of hidden junk fees than they would have paid if they could see the full price upfront and compare it with other options. It’s wrong, it’s wrong. It’s just taking advantage of people and it makes it harder for honest businesses who are trying to do the right thing to compete with dishonest companies who trick customers into thinking their price are lower when they in fact, are not. Ok. If this proposed rule is finalized. As proposed, the FTC would have the power to impose financial penalties on companies that don’t disclose their full upfront price and secure refunds for customers who have been defrauded by companies charging hidden fees. Second consumer, the Consumer Financial Protection Bureau as as banning bank fees and credit unions for charging fees for basic service like checking your account balance, checking your account balance, retrieving all bank records or looking up your balance on *** loan. You know, some banks charge as much as $30 for these services every time you call. It’s outrageous. It’s really outrageous. And today they’re making clear that the we’re making these fees are now illegal. Look, we’re not stopping there. There are tens of billions of dollars in other junk fees across the economy and have direct, I’ve directed my administration to crack down on them as well. For example, later this month, the CFP B will, will propose another new rule that would require banks to make it easier for customers to switch banks. Something banks have made really difficult for folks to do this new rule would increase competition and deter junk fees. All of these actions are going to make *** real difference in people’s lives. We’re already seeing how today, for example, the Consumer Financial Protection Bureau released *** report showing that since I took office, nearly two thirds of the largest banks have eliminated bounced check fees entirely. That was *** lot of money. And by the way, they calculate these bounced check fees for consumers have declined by nearly $2 billion. This isn’t, this isn’t chump change. It’s *** lot of money by $2 billion. And that’s close to *** 90% reduction. In addition, we’ve secured 100 and $40 million in refunds for consumers who are charged illegal junk fees by these banks. And look, and we’re also sending new guidance to every federal agency on how they can promote real competition in their work. You know, and as we take these acts, I continue to call on Congress to pass what my friends in the front row here mostly support junk fee, the junk fee, junk fee prevention act. Hard to say anyway. But all kidding aside, I’m asking Congress to take the action. So this makes it *** matter of law. Today’s actions are part of my broader economic vision to move from trickle down economics to what everyone in the Wall Street Journal of Financial Times began to call bics. I don’t think they meant it as *** compliment. At first, it’s about growing the economy from the middle out and the bottom up, not the top down. Last week’s jobs report shows by Omics is working. We added 336,000 jobs last month, we created more than it created more than 13 million, 900,000 new jobs since I’ve taken office. That’s more than any president ever has in all of history. That’s more than look and the unemployment rate has stayed below 4% for 20 straight months. The longest stretch in 50 years. So look, and inflation continues to fall down nearly 60% from last summer. And now we have the lowest inflation of any major economy in the world and we’re going to make it lower. And in August, we announced the 1st 10 prescription drugs that Medicare selected for negotiation under the inflation reduction act. That’s *** fancy way of saying for many years, big Pharma blocked us along the way. They kept prescription drug prices high and increased their profits, extended patents on their existing drugs and the suppressed competition instead of innovating. By the way, you order *** prescription drug made in the United States of America. You buy it in New York City or Washington DC or Omaha, Nebraska. It cost *** hell of *** lot more than the same exact drug by the same company sold in Toronto, Canada, London, Rome, anywhere else in the world, same exact drug, you know, playing games with pricey so they could charge whatever they want. But this time we finally beat Big Pharma. How long have we been trying to do this? This has gone on *** long time. None of the women in the front row here have been around for more than two or three years, but some of the guys have been here for *** hell of *** long time. But all as I think about it, we’ve been fighting this fight for *** long, long time. Long before I was president or vice president, we passed the inflation reduction act with no help from any of our Republican friends. Every single one voted against it, but maybe they will see the light and among many important things it does, it finally gives Medicare the ability to negotiate lower prescription drug prices like they can do in the vet with veterans affairs like they do. Now, that’s not all, by the way that not only saves the consumer, it reduces the federal budget because guess what? We don’t have to pay that money out taxpayers’ money to reward these companies for overcharging some. Everybody forgets it over, well, over *** billion dollars anyway. I won’t get into how much you save, but I, I’ve kept you sitting too long, but seniors on Medicare are now paying as much as $400 *** month for insulin. Well, now they’re going to pay $35 *** month and I might know it costs these companies $10 to make the insulin 10 to package it. You might be able to get it to $12 and they’re still getting paid 35 which is almost *** 300% increase, more than 300% increase. Now, I don’t get why. Anyway, we’re also cap total out of, out of pocket costs for seniors on Medicare at $2000 *** year. Even for expensive cancer drugs, they cost 1012, 14,000 *** year, no matter what your prescription drug costs are beginning next year, no matter how much they are, no senior is gonna have to pay more than $2000 2000 dollars and it matters. Look, let me close this when I ran for president, I promise we would not continue to trickle down economics in the past because here’s *** simple truth, trickle down economics represented the moment we walked away from how this country’s middle class was built in my view. Not *** lot trickled down to my dad’s kitchen table. I don’t recall. B nos is another way of saying, restoring the American dream trickle down, limited the dream to those at the top. But I believe that every American willing to do hard work should be able to achieve it no matter where they live in every part of the country. That’s the American dream that’s by nos. And that’s why I can honestly say I’ve never been more optimistic about America’s future. We just have to remember who we are. We are the United States of America. For God’s sake. There’s nothing, I mean, sincerely, there’s nothing beyond our capacity when we work together. So God bless you all. Thank you for the strong support and may God protect our troops. Thank you. Thank you so much. No.
The White House has proposed cracking down on junk fees. Here’s how to avoid them
The Biden administration has proposed a new Federal Trade Commission rule that would require more transparency from companies when it comes to these fees
Updated: 12:45 PM EST Nov 5, 2023
“Junk fees” are just what they sound like: hidden or misleading charges that increase the total cost of concert tickets, hotel rooms, utility bills and other goods and services.The Biden administration has proposed a new Federal Trade Commission rule that would require more transparency from companies when it comes to these fees, as well as regulation from the Consumer Finance Protection Bureau and the Department of Labor. You can also avoid the fees by staying vigilant, challenging late-breaking add-ons, and comparison shopping.Video above: President Biden speaks on junk fees and the economyHere’s what to know:WHAT QUALIFIES AS A JUNK FEE?Often, junk fees don’t appear until the final pages of a checkout process, such as when buying concert tickets, airline tickets, hotel stays, or other products with “processing charges.”These fees may also appear late in the payment process when it comes to housing, such as when acquiring a rental, as well as when purchasing services for incarcerated people (such as phone calls, emails, or money transfers). Ariel Nelson, a staff attorney at the National Consumer Law Center, says that increased transparency will allow consumers to avoid sellers who inflate prices. That doesn’t always apply to prisoners because they don’t always have a choice about where to buy from. The rule will also reduce the wasted time consumers spend trying to find the real price of a good or service.”The law will require disclosure upfront of fees and prohibit misrepresenting the total cost, as well as the nature and purpose of the fee,” Nelson said. “If you think there are charges that don’t make sense or you’re paying for something not included in the original price, you should tell the FTC and the states’ attorneys general.”To report an opaque fee or bad business practice, you can go to https://reportfraud.ftc.gov/. You can find your state attorney general at https://www.usa.gov/state-attorney-general.The rule would also require that companies disclose whether fees are refundable. It would apply to industries across the economy, including hotels and lodging, energy and internet, car and apartment rentals, and music and entertainment tickets. With the new regulation, companies that fail to comply could face fines or penalties and be required to provide refunds.WHAT IS THE WHITE HOUSE DOING?The proposed junk fee crackdown is one of a series of Biden administration initiatives meant to help consumers, though Republican lawmakers and some business groups say these efforts could lead to greater regulatory costs and leave the economy worse off.”The proposed rule would prohibit corporations from running up the bills … requiring honest pricing and spurring firms to compete on honesty rather than deception,” FTC Chair Lina Kahn said on a call with reporters. “Violators will be subject to civil penalties and be required to pay back Americans that they tricked.”The Consumer Financial Protection Bureau has said it will also block large banks from charging junk fees to provide basic customer services.What’s more, a new proposed rule from the Department of Labor will require that financial advisers provide retirement advice in the best interest of the saver, closing a loophole in regulation generally governed by the Securities and Exchange Commission. (The SEC’s authority and rule does not typically cover commodities or insurance products like fixed index annuities, which are often recommended to retirement savers.) That should reduce junk fees for financial advice for people saving for retirement.HOW CAN I AVOID PAYING JUNK FEES?If the FTC rule is passed as proposed, the law will help consumers know what they’re paying for more quickly, creating better circumstances for fair competition, Nelson said.To avoid bogus charges as things stand, here are some steps you can take, according to the consumer watchdog Public Interest Resource Group:— Question any cost that isn’t made clear at the outset. This could be a “company charge” added to a phone or utility bill or a “service fee” buried in terms and conditions. Sometimes, optional charges are given official-seeming names to discourage consumers from asking questions.— If you still don’t understand what a fee is for, request a clear explanation in writing.— Comparison shop if you’re uncertain whether a fee is necessary. Another merchant may have a more reasonable price without the mysterious added charges.— Pay by credit card. Questionable and undisclosed fees are easier to dispute when paying with credit.— Keep copies of receipts, emails, texts, and other communications. If you experience a surprise fee, you can more easily complain to the company, state attorney general, or FTC.HOW MUCH DO THESE FEES COST CONSUMERS?Lael Brainard, the director of the White House National Economic Council, said research indicates that hidden fees can cause consumers to pay as much as 20% more than they would have had they known the total cost upfront and comparison shopped.The FTC estimates that consumers waste 50 million hours each year searching for the total price for tickets and lodging. The time saved in those two categories because of the rule would be equivalent to about $1 billion annually, the agency estimates.___The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
“Junk fees” are just what they sound like: hidden or misleading charges that increase the total cost of concert tickets, hotel rooms, utility bills and other goods and services.
The Biden administration has proposed a new Federal Trade Commission rule that would require more transparency from companies when it comes to these fees, as well as regulation from the Consumer Finance Protection Bureau and the Department of Labor. You can also avoid the fees by staying vigilant, challenging late-breaking add-ons, and comparison shopping.
Video above: President Biden speaks on junk fees and the economy
Here’s what to know:
WHAT QUALIFIES AS A JUNK FEE?
Often, junk fees don’t appear until the final pages of a checkout process, such as when buying concert tickets, airline tickets, hotel stays, or other products with “processing charges.”
These fees may also appear late in the payment process when it comes to housing, such as when acquiring a rental, as well as when purchasing services for incarcerated people (such as phone calls, emails, or money transfers). Ariel Nelson, a staff attorney at the National Consumer Law Center, says that increased transparency will allow consumers to avoid sellers who inflate prices. That doesn’t always apply to prisoners because they don’t always have a choice about where to buy from. The rule will also reduce the wasted time consumers spend trying to find the real price of a good or service.
“The law will require disclosure upfront of fees and prohibit misrepresenting the total cost, as well as the nature and purpose of the fee,” Nelson said. “If you think there are charges that don’t make sense or you’re paying for something not included in the original price, you should tell the FTC and the states’ attorneys general.”
To report an opaque fee or bad business practice, you can go to https://reportfraud.ftc.gov/. You can find your state attorney general at https://www.usa.gov/state-attorney-general.
The rule would also require that companies disclose whether fees are refundable. It would apply to industries across the economy, including hotels and lodging, energy and internet, car and apartment rentals, and music and entertainment tickets. With the new regulation, companies that fail to comply could face fines or penalties and be required to provide refunds.
WHAT IS THE WHITE HOUSE DOING?
The proposed junk fee crackdown is one of a series of Biden administration initiatives meant to help consumers, though Republican lawmakers and some business groups say these efforts could lead to greater regulatory costs and leave the economy worse off.
“The proposed rule would prohibit corporations from running up the bills … requiring honest pricing and spurring firms to compete on honesty rather than deception,” FTC Chair Lina Kahn said on a call with reporters. “Violators will be subject to civil penalties and be required to pay back Americans that they tricked.”
The Consumer Financial Protection Bureau has said it will also block large banks from charging junk fees to provide basic customer services.
What’s more, a new proposed rule from the Department of Labor will require that financial advisers provide retirement advice in the best interest of the saver, closing a loophole in regulation generally governed by the Securities and Exchange Commission. (The SEC’s authority and rule does not typically cover commodities or insurance products like fixed index annuities, which are often recommended to retirement savers.) That should reduce junk fees for financial advice for people saving for retirement.
HOW CAN I AVOID PAYING JUNK FEES?
If the FTC rule is passed as proposed, the law will help consumers know what they’re paying for more quickly, creating better circumstances for fair competition, Nelson said.
To avoid bogus charges as things stand, here are some steps you can take, according to the consumer watchdog Public Interest Resource Group:
— Question any cost that isn’t made clear at the outset. This could be a “company charge” added to a phone or utility bill or a “service fee” buried in terms and conditions. Sometimes, optional charges are given official-seeming names to discourage consumers from asking questions.
— If you still don’t understand what a fee is for, request a clear explanation in writing.
— Comparison shop if you’re uncertain whether a fee is necessary. Another merchant may have a more reasonable price without the mysterious added charges.
— Pay by credit card. Questionable and undisclosed fees are easier to dispute when paying with credit.
— Keep copies of receipts, emails, texts, and other communications. If you experience a surprise fee, you can more easily complain to the company, state attorney general, or FTC.
HOW MUCH DO THESE FEES COST CONSUMERS?
Lael Brainard, the director of the White House National Economic Council, said research indicates that hidden fees can cause consumers to pay as much as 20% more than they would have had they known the total cost upfront and comparison shopped.
The FTC estimates that consumers waste 50 million hours each year searching for the total price for tickets and lodging. The time saved in those two categories because of the rule would be equivalent to about $1 billion annually, the agency estimates.
___
The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
[ad_2]
Source_link
