Biden will announce new measures to reduce unwanted fees

CNN
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President Joe Biden It is expected that new efforts to eliminate it will be unveiled Junk fees During an event at the White House on Wednesday, while announcing the provision of $2 billion and $140 million in refunds to consumers from previous crackdowns on unwanted charges from the Consumer Financial Protection Bureau.

According to an administration fact sheet shared with CNN ahead of Wednesday’s announcement, the Federal Trade Commission will unveil a proposed rule that the Biden administration says would prevent companies from charging hidden or misleading fees and require companies to show full prices up front, preventing event ticketing companies, hotels and lodging companies. Apartment and car rental agencies, and more, charge sudden or unexpected service fees.

“For President Biden, kitchen table economics are at the heart of growing the economy from the middle out and from the bottom up — and that’s because he’s thinking a lot about how a family feels when they’re sitting around the kitchen table, choosing which bills to pay and which bills to pay.” “What is the arrangement every month, because there is not enough money to cover everything,” Lael Brainard, director of the National Economic Council, told reporters in a phone call on Tuesday.

“That’s why we’ve made it a priority to crack down on unwanted fees that are hidden in payments for many services that add real value. These deceptive fees may not matter much to wealthier Americans, but they certainly matter to hardworking Americans,” Brainard continued. Those who sit around the kitchen table trying to cover their bills and have little left over.”

According to one official, the proposed junk-fee rule would not limit what vendors can charge, but would require vendors, including ticket sellers, to disclose final costs up front.

“We want companies to compete on prices, not on their ability to hide prices from consumers,” the official said. “So what our rule will do is ask for pricing up front, so consumers can look for the ticket seller that offers the best deal and honest business and have a fair chance to compete.”

The official noted that while it is already illegal for companies to hide fees on the back end of sales, the administration is prepared to take enforcement action against companies that charge excessive fees, so “businesses should not wait for the rule to be finalized; Act now to ensure they comply.”

Additionally, the CFPB will take steps to prevent large banks and credit unions from charging consumers for basic services such as checking bank account balances, obtaining a bonus amount for a loan, or obtaining account information needed for applications.

The CFPB’s proposed rule would also require banking institutions to allow consumers to securely send transaction data to other companies, making it easier for customers to switch providers “to ensure financial companies compete on the basis of quality of service and upfront pricing, which deters unwanted fees.”