How many times have you paid an unexpected costly fee? Unfortunately, it’s a common occurrence, especially in the United States. The Biden Administration wants to reduce these hidden fees to help Americans keep more of their hard-earned money. President Biden is calling on Congress to pass the Junk Fee Prevention Act. Find out how such legislation could save Americans billions of dollars per year.
Junk fees significantly impact the wallets of Americans
Many Americans are struggling financially. With rising living costs, it’s challenging for individuals and families to stretch their paychecks further. It’s already difficult enough to afford housing and food costs in today’s economy.
Junk or hidden extra fees result in more expenses and negatively impact Americans’ checking account balances. No one likes to be nickeled and dimed. Unexpected fees can be frustrating, and for consumers, it can feel like companies that charge such fees are sneaky or dishonest.
The Biden Administration is proposing changes to help consumers save money. By reducing or eliminating hidden junk fees, consumers could keep more money in their pockets and could save Americans billions per year. It’s worth noting that, at this point, the legislation is just a proposal. For Americans to see positive changes, Congress would need to work together.
How the Junk Fee Prevention Act could save you money
What kind of hidden fees could be reduced or eliminated if Congress were to pass the Junk Fee Prevention Act? Here are a few ideas that have been proposed.
- Ticket fees: Many online ticket sellers impose service fees; often, these fees aren’t disclosed as part of the total ticket price. Additionally, consumers don’t have many ticket-buying platform options, so they cannot avoid these fees by buying tickets elsewhere. Biden hopes that legislation could eliminate such extra service fees by requiring ticket sellers to disclose these fees in the ticket price.
- Airline seat selection fees for families: Many airlines charge seat selection fees. For families with children, these fees can add up quickly. Some families pay the fees only to ensure they will be seated with their children during the flight. The Biden Administration wants to do away with such fees and guarantee fee-free family seating.
- Early termination fees: Many cable TV, internet, and mobile phone companies charge early termination fees when consumers switch providers. In many cases, these costs are high. Biden is urging Congress to eliminate these exorbitant fees so consumers aren’t locked into one provider due to the fear of being charged fees.
- Resort and destination fees: Some resorts charge resort or destination fees, which aren’t always clear upfront. These fees can quickly make a vacation more costly and impact your vacation budget. Biden hopes to ban these fees by requiring hotels to include these fees in the price of the room to eliminate surprises.
The future of junk fees is unknown
If such legislation were to be passed, many U.S. companies could be required to be more transparent about the fees that they charge, which could help Americans waste less money. This kind of legislation could be a substantial personal finance win for many households.
We’ll have to wait and see whether this legislation becomes a reality. In the meantime, consumers should be on alert before spending money. Read the terms and conditions and research all costs before signing up for a new service or making a purchase so you’re aware of potential hidden fees.