Junk Fees Are Squeezing the Middle Class on Essential Needs like Housing, Banking and Travel
junk fees
are hidden or surprise charges often added right at the end of transactions — and they cost many American families hundreds of dollars a year.
Economy-wide, these hidden and predatory fees add up to TENS OF BILLIONS OF DOLLARS EACH YEAR.
These are not small nuisance fees attached to luxury items - these junk fees affect everyday Americans in every part of their life - housing, automobile purchases, banking, travel and essential retail purchases are some of the sectors where Americans are being overrun by junk fees.
These fees are squeezing the middle class, taking money out of their pockets and putting it in the hands of big businesses.
The Biden Harris administration is trying to fix the problem by pushing for legislation that requires transparent and upfront pricing. This remedy is essential for consumers to make informed choices and budget effectively.
By addressing junk fees, we can protect consumers, promote fair competition, and create a level playing field for businesses.
JUNK FEES BY THE NUMBERS
At least 85% of Americans have experienced a hidden or unexpected fee for a service in the previous two years and one-third of Americans say they’ve spent $100 or more on unexpected or hidden fees on the bills they regularly pay over the past decade.
These fees disproportionately affect low-income households and people of color, exacerbating economic inequalities.
Addressing junk fees has broad support across party lines–85 percent of Democrats, 77 percent of Independents, and 74 percent of Republicans voters support legislation that addresses junk fees
79 Percent of Americans support the Biden Administration’s plan to lower limits on credit card late fees (90% Democrats, 74% independents, 68% Republicans)
Answer the questions below to get an estimate of how much you paid in junk fees last year!
Have you paid overdraft fees?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
The average American pays $32/month in overdraft fees
Source: Nerd Wallet
Do you have a credit card?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
$31.50
The average person spends $1,579 a month, and the average rate for a credit card is 2%, by that math junk fees for credit card usage is at least $31.50 a month
Source: Anytime Estimate
Have you paid a late fee?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Do you have an annual cable contract?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
$37.5
On average, consumers pay around $450 for an annual (or $37.50 monthly) cable TV bill
Source: Consumer Reports
Have you canceled a cable, internet or cell phone contract early this year?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
$150
There’s usually early termination fees that average around $150 [if not more] per canceled contract
Source: CNET
Did you spend money on food or grocery delivery this month?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
$148
The average person spends $37 on food delivery weekly in the US.
That’s before fees. When you tack on roughly 24% from fees, you end up with $37 in fees (one whole food order!)
Source: fool.com
Have you stayed in a hotel this year?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
$69
You usually spend an average of $35 per stay for a resort fee and another $34 for a destination fee
Source: NY Times
Bought tickets to go to a concert?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
$67
Average cost of a concert has went up to $250 in 2023 and concert companies usually charge 27% of the ticket fee, that’s roughly $67 in fees
Source: Wall Street Journal
Youve paid aN ESTIMATED total of
$0.00
in junk fees
Youve paid aN ESTIMATED total of
$0.00
in junk fees
Call Out Defenders of Junk Fees
and Push Corporations to Reform Extra Expenses to American Families
Given the importance of this issue for American families and for our nearly 10 million members, MoveOn is launching a new initiative called “F*CK the Fees.”
MoveOn, as part of our "F*CK the Fees" initiative, will be focused on leveling the playing field for working families under siege by these fees:
Corporate accountability for big corporations
that are gouging consumers with these junk fees
Lifting up the voices of our members
who have been impacted by these rampant, abusive fees
Calling on Congress and federal agencies
to establish rules and regulations that support and uplift working-class Americans and fight back against these outrageous fees.
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