Biden has said: Hidden junk fees are taking real money out of the pockets of families

Biden has said:

Hidden junk fees are taking real money out of the pockets of families.

Surprise banking overdraft fees, excessive credit card late fees, & hidden hotel fees add up.

My Administration is banning junk fees to lower the cost of everyday living for Americans.

President Joe Biden, alongside Federal Trade Commission Chair Lina Khan and Consumer Financial Protection Bureau Director Rohit Chopra, unveiled new policy proposals targeting hidden fees in certain sectors. Biden criticized the practice, stating that hidden fees can lead consumers to pay up to 20% more than they would if prices were transparent.

The FTC's proposal aims to ban burying fees within transactions, requiring businesses to disclose surcharge amounts upfront. The rule could potentially save consumers over $10 billion in the next decade, with the commission having the power to secure refunds for violations. The CFPB is focusing on big banks, emphasizing consumers' rights to access accurate and free account information without excessive fees.

The bureau also plans to propose measures facilitating the easy transfer of customers' banking data to competitors. These initiatives align with the administration's broader push for increased competition across industries, in line with Biden's executive order on promoting competition in the economy issued in 2022. The proposals build on preliminary actions taken by the FTC and CFPB in recent months to address hidden fees in various sectors.