A new study has revealed that banks with the highest reliance on hidden fees are primarily located in low-income areas of the US, costing consumers at least $29 billion each year. In response, President Biden and the Consumer Financial Protection Bureau have taken steps to limit credit card late fees, and the President has vowed to ban “junk fees” in his State of the Union address. The study highlights the need for greater regulation of these fees to ensure they are not disproportionately impacting low-income communities.
Posts tagged as “Rohit Chopra”
President Biden has proposed legislation to Congress to crack down on hidden fees, such as those attached to airline and concert tickets, vacation packages, and television and telephone bills. The proposal would cap credit card late fees at $8, ban airlines from charging additional fees for family members to sit alongside their young children, and require hotels and other businesses to disclose their fees upfront. It would also make it easier for consumers to compare prices and find the best deals by eliminating excessive fees for tickets to concerts and sporting events.