Junk Fees Are Squeezing the Middle Class on Essential Needs like Housing, Banking and Travel
are hidden or surprise charges often added right at the end of transactions — and they cost many American families hundreds of dollars a 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.
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!
Do you have a credit card?
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 canceled a cable, internet or cell phone contract early this year?
Did you spend money on food or grocery delivery this month?
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!)
Have you stayed in a hotel this year?
Bought tickets to go to a concert?
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