Leah Mills/Portal/FILE
President Joe Biden delivers a speech on the Affordable Care Act and Medicaid in the East Room of the White House in Washington, United States, on April 5, 2022. Portal/Leah Millis/File Photo
CNN –
President Joe Biden is expected to announce new measures to crack down on junk fees during an event on Wednesday at the White House, along with $2 billion in savings and $140 million in consumer refunds from previous crackdowns against junk fees from the Consumer Financial Protection Bureau.
According to a government 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 prohibit companies from charging hidden or misleading fees and require companies to pay the full amount Providing prices in advance would hinder businesses that sell event tickets, hotels and lodging companies, apartment and car rental agencies, and more from charging surprise or unexpected service fees.
“For President Biden, kitchen table economics is at the heart of growing the economy from the center out and from the bottom up – that’s because he thinks a lot about what it feels like for a family to sit at the kitchen table and decide what bills to pay What order each month because there isn’t enough money to cover everything,” Lael Brainard, director of the National Economic Council, said in a call with reporters on Tuesday.
“That’s why we’ve made it a priority to tackle the junk fees that are hidden in payments for so many services and really add up. … These sneaky fees may not be that important to the wealthiest Americans, but they certainly matter to hard-working Americans sitting at the kitchen table trying to keep track of their bills and have something left over,” Brainard continued continued.
According to one official, the proposed junk fee rule would not limit the amount vendors can charge but would require vendors, including ticket sellers, to disclose the final cost in advance.
“We want companies to compete on price, not their ability to hide prices from consumers,” the official said. “So our rule would require pricing in advance so that consumers can search for the ticket seller with the best deal and an honest deal and have a fair chance of competing.”
The official noted that while it is already illegal for companies to hide fees in the background of sales, the administration is prepared to take enforcement action against companies that charge excessive fees, so “companies do not wait for a regulation to be finalized “Should, but should.” Act now to ensure they are in compliance.”
In addition, the CFPB will take action to prohibit large banks and credit unions from charging consumers for basic services such as checking bank account balances, obtaining a repayment amount for a loan, or obtaining account information necessary for applications.
A CFPB proposed rule would also require banking institutions to allow consumers to securely transmit transaction data to other companies, making it easier for customers to switch providers to “ensure that financial companies compete on the basis of service quality and upfront pricing.” and thus prevent junk fees.” ”