How ‘Junk’ Fees Secretly Invaded The U.S. Economy (And How Pres. Biden Wants To Stop Them)
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- Опубликовано: 14 май 2024
- Americans are collectively spending nearly $65 billion on sneaky fees, according to the White House. “It really seems like companies have become addicted to junk fees,” Lina Khan, chair of the Federal Trade Commission, told CNBC. Junk fees are making companies billions of dollars richer.
“I think part of the reason that a lot of companies are doing this is that investors and shareholders really like it. It’s another way to pull in more revenue without really competing,” Rohit Chopra, director of the Consumer Financial Protection Bureau, told CNBC.
CNBC sorted some of the biggest junk fee offenders into three separate buckets.
Bucket No. 1: Banking fees
This includes overdraft charges, late fees, account maintenance fees or fees to pay a bill, according to the CFPB.
“We estimate that the credit card industry levies about $120 billion in fees and interest each year, and that number might be even going up given the rise in interest rates,” Chopra told CNBC.
The CFPB also estimates that fees worth $23.6 billion were charged by card issuers in 2019, and $14 billion of that total came from late fees alone.
Bucket No. 2: Fun fees
These are the extra costs consumers may encounter when they’re hopefully doing something fun, like buying a concert ticket, booking a flight or reserving a hotel room.
“I stayed at a hotel that I quickly booked. I asked, ‘Are there any extra fees?’ They said no ...The hotel then slid the bill under the door to a room on the last night and we were charged a $40 a night amenity fee,” Lauren Wolfe, founder of Kill Resort Fees, told CNBC. “But even crazier, [there was] a $1 mandatory charity donation. I looked up the charity. It’s a charity that goes back to the hotel.”
For example, resort fees may be tacked on for your use of amenities during your stay, even if you’re not using the gym or the pool.
“Junk hotel fees and these ancillary fees are bringing in about $3 billion a year for the hotel industry,” Wolfe told CNBC, citing a Consumer Reports estimate.
Bucket No. 3: Home fees
Buying a house and having a car can result in surprise charges to American households.
This includes closing costs and other fees that arise when buying a home, including fees for document preparation or title insurance.
There are also cable and internet junk fees.
“If you look at the fine print, [it may say] to ‘maintain our high-speed fiber network,’” Jonathan Schwantes, senior policy counsel at Consumers Reports, told CNBC. ”[So,] you have to charge me an extra seven bucks for the internet infrastructure fee to maintain your high-speed fiber network? But, what about the $75 I’ve already paid you?”
Watch the video above to learn more about where junk fees hide, details of proposed changes, where policy may fall short and whether increased regulatory oversight may be enough to squash junk fees once and for all.
Chapters:
0:00 Introduction
1:26 Defining ‘junk’ fees
5:34 Squashing fees
7:52 Policy problems
10:02 The future of fees
Produced, Shot and Edited by: Andrea Miller
Additional Camera by: Carlos Waters, David Soltis
Animation: Mallory Brangan
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images
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How ‘Junk’ Fees Secretly Invaded The U.S. Economy (And How Pres. Biden Wants To Stop Them)
Ticketmaster be like:
Face value: $50
Venue fee: $25.34
Access fee: $20.87
Paperless fee: $15.11
Seat fee: $10
Fee fee: $8.80
Fee Fi Fo Fum fee: $6.01
Cuz we can fee: $0.98
Wtf are you gonna do about it fee: $100
Lol
Sooooo true!
Fee fi fo fun fee 😂
I hate ticketmaster. This company is one of the worst offender in terms of additional costs of purchasing a ticket
You forgot "convenience fee"
They forgot to mention the fees consumers pay for renting an apartment. Why do I need to pay a convenience fee to pay my rent online and why wasn't it mentioned in the listing price?
This is absolutely true! Apartment fees are ridiculous.
Can you pay via ACH? Usually you can link your checking account, which doesn’t cost anything.
Also rent should be reported to credit bureaus. I’ve never made a late rent payment but this doesn’t matter to anyone outside of my rental agreement
Yeah notice how before when cash was more used there was no fees but not that cash is less used now there is fees to pay with cards amlost everywhere
my rent was 1950 and i ended up paying an extra 100 in junk fees to invitation homes lmao
I can't help but laugh at my girl forced to donate a dollar to the hotel's "charity." 😂😂😂😂 These corporations have gotten used to openly stealing.
Costanza's human fund
What was the charity...Trump Foundation or Clinton Foundation!?
I HATE when the supermarket or Walmart ask me to donate to whatever scam charity they're pushing. How about you take your billions of dollars and you donate!
Not every corporation but okay clown
@@ameyas7726 You're so lame imagine bringing up Trump and Clinton here🤣🤡
My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in US.
The FED knows. They aren't committed to attacking inflation. They are going to continue to inflate, stocks and commodities will continue to go up with everything else. You can't just sit on cash waiting for a crash, get your money working for you, start buying in slowly and then gradually increase the pace of buying as the prices continue to drop.
In my opinion, now is not the moment to rely on hearsay. Every individual, regardless of their level of experience as an investor, requires guidance at some stage.
@@hunter-bourke21 It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $610k.
@@Believer292 I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?
@@Believer292 This information is valuable. I quickly searched her full name and her website appeared instantly, showcasing her impressive qualifications. Thank you for sharing.
A Bank Maintenance Fee is a scam when you consider that the banks take our money and then lend it out to make more money.
I think it might be justified if your average balance is below some low minimum like $100 for checking, because then the cost of administering the account will be more than the benefit from loaning out some multiple of that balance.
EBAY charges the seller a 13.25% fee on the SALES TAX when on item sells !!! How do they get away with that? The sales tax has nothing to do with the seller. They can't give me an explanation when I ask eBay.
@@jofujino But what is the bank doing? Are they charging me for the additional electricity and storage space used?
@luke thomas There are operating costs like printing and mailing checkbooks, but the big thing is probably labor. Many small accounts will force you to get more tellers, customer service reps to answer phones, and more compliance officers to review a sample of transactions to comply with the money laundering requirements. Moreover if you bank at a credit union or regional bank they probably don't develop and own their own software so some financial software vendor is probably charging them fees per an account or per a user.
@@jofujino Check books costs money so they shouldn't be part of a bank account maintenance fee. It depends on the person, but I go to the bank only when it is the only option, so I don't see how additional small accounts would be a noticeable burden, they are small accounts so you will likely not be spending much time in a bank. That should also apply to all labor fees.
A per account fee does make sense as a reason to have a small account cost money for the bank, but I would argue that banks should pay that likely very small fee themselves for a persons first account with a bank, simply because small accounts if it is your only account with that bank is a pretty good indication that you don't have very much money. And that would solve people making accounts just to force the bank to spend more money.
I hate convenience fees. Like WHY AM I BEING CHARGED A FEE IF IT MAKES IT EASIER TO PAY THE BILL THAT'S ALREADY FILLED WITH FEES?!?!
Yeah what convenience are we paying for?
That’s exactly it. It’s the Convenience of not wasting to waste gas and not having to actually go to pay in person. Your actually being penalized. 🤦🏽♂️
Because you voted republican. Enjoy!
My favorite was the fee I used to update my car registration. I'm not sure if paying via check or in person would've skipped the fee, but I had to pay a charge for doing it online. SMH.
@@boristheamerican2938 literally though
We should also talk about all the junk fees universities and colleges charge students.
Yes! It is ridiculous.
Or fees for things we don't use. Why should I be required to pay for my universities gym?
@@beacreates4370 I am going to play devil's advocate here: check and see what those fees are. When I was in college we pay 20 a semester for parking/transportation fee. We had shuttle serves that took you all around campus and also to the downtown bus terminal and local shopping centers but students would complain to mommy and daddy about how the college is making me pay for parking when I don't have a car and the parents would complain only to learn it paid for the shuttle service that their kids were using every day (and to be fair $20 a semester was a bargain considering a monthly bus bass for the same service with mass transit would have been $30). Same thing we the "gym fee" it was the "health and fitness fee" and paid for the gym, pool, and our on campus student health center. You could opt out if you were a commuter but then your id was flagged and you couldn't use the pool, gym, or health center. And to be fair, we didn't have to pay extra out of pocket to use. Considering a walk in clinic visit in that area was at least $50 and the health fee was 25 a semester, it was easy to do the math and realize what bargain it was.
Take and online class, get charged for the gym 😂
@@beacreates4370 Because you can't even get right the possessive, " my university's ". Count yourself lucky that you even got admitted.
They forgot to add tipping. They want you to tip them, and everyone expects a 25-30% tip. My mom was a waitress and lived off tips I get it but it is crazy how out of hand the tipping culture is. Cashiers have a tip jar, the hostess has a tip jar, the server wants a tip, the girl at 7/11 has a tip jar on the counter, the person at Starbucks has a tip jar, everyone has a tip jar or wants a tip, hell the people getting an item they have locked up and I can't access wants a tip.
Can I have a tip jar? Christmas would be OK.
My favorite is when I have to pay a fee to pay my rent online, and there are no other ways to pay rent
Yeah my new complex has that same dilemma. Literally like an extra $40 just to pay rent online and it doesn't matter if you pay via debit/card or a direct bank transfer. Which is why I switched to paying my rent via credit card. Lol, if they going to charge me extra for paying online anyways might as well get some cash back on that transaction.
My HOA management company charges a $10 online payment fee if you are doing a one-time payment instead of auto-payment. Our dues went up $5 in January and I forgot to preemptively adjust my auto-payment, so I had a $5 balance. They were gonna charge me a $10 fee to pay a $5 balance. I mailed them a check, which I've heard is especially labor intensive on their part, hence their push towards getting everyone paying online.
Set up paying online using your bank account number instead of using a debit card. I save 10.00 a month.
Why are you poor?
My property management company is using a Rent payment app, which charges a $20 convenience fee. They did away with direct deposit. Only other option is cash, which I do.
Just give me a "Advertised price is total price" law, and make it include all fees and taxes, and fine violators per violation so they stack up. The computer age of finance is a half century old, there is not one excuse for companies to not be able to tell us what their product or service costs up front.
Exactly, I don’t want to do ducking math each time I buy something. Also they should breakdown price at checkout too.
And should include tips as well.
That means they cannot price stuff $99.99 to trick the mind to thinking your spending less then 100 dollars lol
👏
like europe has? price there is price plus tip plus sales tax.
Haven't lived in the US in +25 years, I am always suprised by all the hidden fees. I always book my hotels and car rentals from my adopted country, Sweden. Consumer protection laws require companies to state all fees and give the total price. When I bought an apartment, I didn't have any closing costs nor did I have to pay any deposits to the homeowners association. Part of the reason I don't go to the US very often, always feel like I am being ripped off.
I live in the US. I am at the point, where I just dont participate in much. I call them "Gotcha fees"
wooooooOoooOooh omg the Netherlands must be the perfect place to live!!!!! (except for black people, iykyk)
@@m87.photovideo Sweden, The Netherlands
@@m87.photovideo Not their natural habitat and nobody dragged them there as enslaved people like in US or Caribbean. So they can just stay away from Sweden, nobody cares if they don’t visit.
@@YABBAHEY1
Lol yeah, Americans aren't too good with geography 😆🤣
I live in South Africa and here it's a legal requirement that all fees, service charges, taxes, penalties and interest charges must be clearly laid out in the initial contract. Basically there's no such thing as a hidden cost in our contracts.
same here in germany
That's the law in most countries, I don't know a country outside the USA where hidden fees are legal.
ok but you live in south africa
@furry8298 I rather pay all the fee's in the USA, then to be fee free in ANY part of Africa.
If it ain't in the contract it ain't. The reason you are told to read before signing.
The worst fee of all is the fee to pay for the fees on the bill
Thank God I dont live in America.
Yeah, like renewing your car registration online.
@@bonbonjovi4836 And that is charged by the government, who said they are fighting the fees, lol
no more
That's precisely what eBay does. They charge a seller's fee on the SALES TAX of an item sold. OMG
The fact CNBC called out they're own cable company. Respect!
Their.
What?
@@DarthSailorMoo CNBC is 100% owned by Comcast Cable. They are a wholly-owned subsidiary of Comcast. They called our Comcast in the video
They must hate their parent company 😅
@@landerboy90 Stop spreading disinformation. CBC is owned by the federal government. CTV on the other hand, is owned by Bell.
America as we know it is finished. With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio
@sandrabeckham602 Would you mind recommending a specialist with a variety of investment options? This is extremely rare, and I eagerly await your response
Thank you! I just looked up sofia online and researched her accreditation. She seems very proficient, I wrote her detailing my Fin-market goals and scheduled a call.
@janeviella6807 Such a priceless tip, Thank you so much!
When you see a name, you know the thread is a sham.
Easy... the market goes up and the market goes down. You just ride it out until you're ready to retire.
As not an American and someone who doesn’t live in the US I get shocked on how many junk fees come up in all sort of businesses.
This makes everything lose credibility. Mandatory gratuity fees in big parties in restaurants (no tip when that happens). Resort fees. It’s a hotel for gods sake!! When renting a car, booking tickets…. It’s a joke.
I don’t get the feed for a large booking? Like you’re bringing them a lot of business at once. If they make the excuse it’s to provide service, what a load of rubbish - they take up the same amount of tables and spend more money. Don’t like groups? Do take group bookings
It is extremely upsetting to see comments like this pertaining to mandatory gratuity for large tables at restaurants because you aren't punishing the restaurant you are punishing the server who waited on your group. The restaurant got your money from your drinks and meals but the server, who probably gets a base hourly wage of less than $5 and depends on their tips to be able to live, by your actions gets penalized for a company rule they can't control. If you want to complain complain to the management but don't stiff your servers. Did you ever consider the reason behind this policy? It's to safeguard waitstaff from getting a minuscule tip after working extremely hard serving a large party, because it does happen more than you think.
Lastly, I think that the US should abolish tipping altogether. In Europe there is no tipping it is included in your bill.
@@theinternetbutler Please see my comment below. The restaurant gets their money from what you order the rule is to protect servers from getting stiffed of their tips. When patrons leave a $1 tip it isn't hurting the restaurant it's only hurting the person who waited on them.
An account maintenance fee is the dumbest thing I’ve ever heard of.
I agree.
Convenience Fees.
It’s to rip people off!!! Who ends up getting the money is what I want to know? When I pay for my son’s school lunch account online there is a ‘convenience’ fee. Who pockets the money?
Given the fact this "account maintanance" is just entry in database
Facts!!!!!
I have never understood all of this hidden fees in US: not ordered services, tips, not mentioning TAX in prices and etc. Here in Europe we have much less unexpected payments in our bills
tax not in price is more reasonable because tax varies in different states
@@louielu8920 what is the problem to show it in the price if its shown in the bill? You can't select it anyway, its known in advance. Its just nonsense
You will need to at least input your billing zipcode, so the system can decide how many sales tax should add to the price
@@louielu8920 ... different taxes across the country are a bad idea to begin with.
Not across the country, but within the States! 5 of the states didn't have sales tax, others range from 1 to 10%. This is indeed a culture shock for me at the very beginning
Many years ago I had overdraft fees at my bank (Boa). They reordered the transactions to maximize the number of transactions below zero and thus maximizing the fees. I called to ask them to keep the order of transactions in chronological order. They said they couldn’t do that, that they always clear larger ones first. I asked if they could simply refund some of the fees. They said they couldn’t do that. Then they charged me a fee for the phone call.
Wow, crooks!
They might as well have told you to bend over and say "Ahhhh!"
And you notice their initials is BOA and is quite appropriate because they squeeze you like a boa constrictor.
I would have closed my bank account from there.
@@electron2601 Me, too. I hope she did!
I LOVE it when I pay for tickets or hotel online and they add a "Booking fee" or "convenience " fee on top. Blatant cash grab. If I am the one doing the booking myself without involving an agent or service person, then the "convenience" is theirs and I should be rewarded for making the booking ie discount. Its so messed up,
They're telling you to pay for their IT infrastructure, their operating expenditure, to maximize their profits. They rely on you paying a "small" amount because you aren't left without (mostly) any alternative.
Lol, "convenience" fees are completely rid,iculous..!!
I found a car dealer was trying to charge us a “documentary fee” of about a thousand dollars. It turned out the fee was just a made up charge having nothing to do with documents.
😂
Most dealers unfortunately have this type of fee. Often referred to has a "doc" fee or "documentation" fee. It is pure profit for the dealer and provides absolutely zero value to the buyer. Just one of many reasons to never ever for any reason ever, buy from a dealer.
Sounds scam-ish, not surprised tho! With interest rates going up theirs less consumers buying cars off the lot. I really hope this bill passes, I want to buy car off the lot and I’ll be damned if I pay a doc fee. I’ll just tell them I can go home and printout the docs myself I have a printer 🖨️ 😭🤣
LOL I bought my last two cars for just over that fee. Goddamn.
they're a total scam. in NY state they're capped at 75 dollars. in NJ there's no cap and they'll try and sneak in a 500-1000 fee for what amounts to 5 mins of paper work.
it feels like americans are just skimmed out of money to keep a small group of companies and people insanely rich. such a bad place to try to start a family and grow as a person imo
Yep. And Americans have been duped into believing for decades that this is the best way for anything to work.
This happens in all modern economies tho
@@CristianmirabalWuno not really
@@CristianmirabalWuno no it doesn't
@@CristianmirabalWunoEven if this statement was true, not to the extent the U.S. operates 🤷🏽♂️ The U.S. is far more dystopian than you actually think, its mad.
I would like to commend CNBC for reporting on a topic that is detrimental towards its parent company. This is the kind of open and fair reporting that we need. Awesome job.
If only this was normal
The worst one is the "Billing Cost Recovery Fee." Essentially, they're billing me for billing me, which is really outrageous considering it doesn't cost them anything to bill me as I have signed up for paperless billing.
Door Dash fees... you have the sales tax, tips, emergency response fee, county fee, long-distance fee, service fee, delivery fee, regulatory fee, and there is even a small order fee. Your $12 suddenly becomes $30. And don't forget that some restaurant's food cost on the menu is higher instead if you were to go into the restaurant.
Take out food but require us to tip is the worst!
Don’t forget the Multiple Fee Fee
@@miralan2215 You should NEVER tip for takeout.
Same with Uber eats, in the beginning I loved ordering the variety of food available. Now a simple $10 meal ends up being over $25 😂
I stopped using Doordash and Uber last year after noticing the price increase.
Can’t believe how long it’s taken for this to be brought to attention like we basically gonna go broke before they get rid of these
Exactly, with the way our government work it’ll be years before these junk fee laws are enacted and enforced.
The entire tax system is illegal think abt that. An ol Obiden isnt doing anyone any favors
@@illusionary5951 please tell us how it is illegal so we can think about that
The crooks, I mean politicians do the same thing.
@@illusionary5951 You'll be canvassing your Republican congressman to pass these reforms then? Or are you happy with what we have now?
I love that they always need to "offset the loss of the fees" and "pass that loss onto the consumers". Like babe. Just eat the cost. If these companies are really so good with money you'd think they'd be able to budget around that loss. Perhaps the shareholders could take a smaller amount?
No one can be perfect, take your time
It's not just junk fees... there are also "junk taxes". I had rented a car in New Mexico and had budgeted carefully, then was shocked to find that NM charged car rental taxes above the normal sales tax... and never knew about it until I returned the car. I had a 4-day business trip in New Orleans, and dot slammed with hotel taxes above the general tax rate, amounting to about 15% of the hotel bill - and again, only learned of this at checkout. It should be mandatory to inform the consumer of these junk taxes when they make a booking.
It’s the same in FL, lots of fees to make up for the lack of state income tax.
I agree these fees are just a way to hide the true price of something. They should be 100% banned. A fee that is mandatory for all customers should just be included in the original price.
That's how it works in the rest of developed nations.
But, we don't make an exception for taxes.
If you advertise a product for price X (or have a price label in a store) then you must be able to buy that product for price X (incl all taxes and fees).
Simple.
@@rufmeister Not simple, every city has a different rate of tax. So now you can't even advertise. Brilliant!
Junk fees are illegal in most countries, including many developing countries. This is pretty much a NA only thing
Everything has a "service fee" or a "convenience fee" now 🙄
Absolutely infuriating. Just to hide a price increase without actually increasing the menu prices.
DMV registration renewal fees are pretty fking stupid ngl. They don't provide any tangible service.
@@Misaka-gt5yj it funds for DOT usually. Probably one of the few fees that really need to exist as gas usage drops.
especially when YOU are the one entering and making the booking instead of one of their employees...the convenience is theirs, not yours
Resort fees are so obnoxious. $40 a day has made me not want to visit places like Las Vegas. Or at least, avoid hotels altogether. We just stay at Airbnb’s now.
Airbnb isn't immune to fees either lol. Your $80/night AirBnb ends up being $130, puts your budget out of whack.
Airbnb is no good too with their added cleaning service making it as or more expensive than a hotel.
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy, or not?
Stocks with yields that outperform the market should be on your radar, as should shares that at least lag the market over the long term. But if you want a long-term strategy that works, I advise you to consult a broker or financial advisor.
Don't depend your market assessments and decisions on hearsay and rumors; I did it in 2020 and ended up with worthless market holdings. Before I started noticing any notable improvements in my portfolio, Helene and I had to completely rebuild it. I've been using the same advisor ever then, and in just two years I've scaled up to $876k. Depending on where you look, a bullish or down market might both produce good profits.
@@johnlennon232 Thats a good one. I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market. Could this coach that guides you help?
@@johnlennon232 Found her webpage, I wrote her an email and scheduled a call. Hopefully she responds. Thank you.
It takes research to avoid zombie companies=those surviving on debt rather than quality products or services. Also it is possible to get slammed with a Capital Gains tax, which might mean you'll want a tax advisor. Ponzi schemes are every where and people like Murdaugh and Bankman-Fried are every where in the "finance" industry.
Fees are just a bait and switch on pricing. They lower the advertised price to be competitive, but then jack the price right back up with additional fees at checkout. I would rather just see the “out the door” price advertised right up front. Even if the out the door price is ends up being the same, at least its honest and not deceptive/misleading.
Recently bought 2 $24 tickets but after the fees the total was $79 almost double.
...all designed to prevent a rational choice by the purchaser. We used to be a "square deal" culture. No more. And you can't legislate basic honesty.
That kind of thinking is why companies continue to bilk consumers. Whether they list the fees or roll them into the overall bill where you can't see it, the practice remains deceptive. You're still overpaying for a service so they can increase profits without actually having to modify their business model to stay competitive. That's the issue - fees are an easy cash grab for companies who seek easy profits to line the pockets of shareholders any way they can without having to innovate.
If the junk fees are included in the advertised price, companies would have to compete on them and wouldn't be able to hide price increases. Therefore you're less likely to be overpaying.
@@jcsjcs2 Not necessarily. We're still overpaying now. Companies across all sectors are using shrinkflation to set higher prices, deliver less product, and maintain higher profits. Hiding junk fees won't stop companies from being profit driven. It's less transparent which makes it harder for consumers to know what they're really paying for and why. The best we can hope for is a reduction in the number of overall junk fees added to a bill and an ability to opt out of more of them.
APARTMENT FEE's!! unbelieveable. I have a 1 bedroom apt in Dallas and they charge me $25 per month to pick up my trash and the trash bin is literally right outside my front door!! They also charge me for Pest control and I have never had anyone in my apartment for spraying and neither have I seen anyone spraying around my apartment in over a year. They have other stupid fee's besides that, the renewal for my 1 bedroom apartment with an attached garage (in Richardson, TX) is going up to 1,800 per month! That is an increase of $200 just in the past year. Unbeleiveable. GREEEEEEDD Apartments are getting $100 more per month in Fees which is not part of the advertised rate and when economists and governments do their analysis, they dont consider add-ons
Consider renting a condo if you can which the unit is individually owned. The Condo Owner has to pay Home Owner's Association fees which includes maintenance of the entire building. They can not pass this on to the Tenant. On the other hand, an apartment owner has to maintain all the units and will try to pass on any maintenance costs they can to the Tenant.
Buy a house then. Then you can pay the trash and pest control just like the rental.
@@mph5896 the fee is for a PICKUP service at your front door. That is stupid!
@@heybrowhatup HOA fees are no solution. I have seen where HOA's do unusual repairs and they do in fact pass the charge to owners, which is above the monthly fee. But HOA in condos are about 10 times what HOA are in houses. And that is not an exaggeration. If a House HOA is $50, then many condos are $500 per month. The average HOA in condos ranges from a minimum if $250 and I have seen as much as $800 per month. So, You Are Paying for it..
@@mph5896 home ownership is not for everyone
Booked a hotel recently that had no mention at all of a parking fee. When I checked in they charged me 30 extra dollars and I asked why and they said it was a parking fee not even knowing if I drove there in a car or arrived a different way. Never going there again
Well I walked into a motel and he saw me get out of a taxi. He didn't even bother to give me a vehicle description form. As from what I've always seen it's usually on a 2nd page or at the bottom and you can cross it out. Time after that.. I crossed it out and wrote over. I JUST WALKED HERE FROM THE BUS STATION. As this was a place literally across the street from the bus station. So sence I don't have a car and I always cross out or don't even fill out the separate page. I'm confused what place are you going to that doesn't have the set up as I described??
@@carlgharis7948 Fairfield inn by Marriott
@Kyle Rider well let's see in my experience we have a Laquita a Super 8 a motel 6 and a place thats not nationally recognized ran by some guy from the middle east in the past couple years. I walked in off the street and asked for a room. I'd say DON'T go to the Marriott if they are pulling such nonsense
@@carlgharis7948 oh I’ll surely avoid that one for sure.
@Kyle Rider so pay an extorted bill on top of that pay for parking which shouldn't even be a thing to start with. And pay it even if you're not using a car.. how much sense dose that makes?
When I came to florida for vocation, lived in a holiday inn and other basic hotel, these are not resorts but they all charge the resort fee, this quite surprised me.
Junk fees are ridiculous. Not only have I been harassed, abused, and neglected by my several retail jobs with physical, emotional, and financial harm, but my private university asks me like $15,000 even after scholarship. And when I take a look at the tuition and other fees , I am amazed there’s technology fees and wellness fees even though most of classes are online. WTF? 😅
What do you get for the wellness fee?
@@xlynx9 Nothing. :(
@@xlynx9 makes you feel good for paying the president’s salary. My old university president makes close to a million dollars a year.
Now you see how horrible taxes are. I'm subsidizing suburbanites that can't support their own sprawling infrastructure without at least a 300% increase on their own taxes.
@@organizedchaos4559 You gotta be kidding me. I actually make some dude I don’t know richer? 😤
Nooooooo, we need the fees to be able to be charged both ways. I charge a viewing fee for looking at your menu, an ordering fee for telling you what I want, an acceptance fee for when the meal is eaten, a notice fee for when I ask for the bill, a payment fee for me having to use some method of payment that requires any effort, a departure fee for when I leave the table vacant.
Excellent ideas!
Fees for choosing the restaurant, fees for asking the receptionist if they have seats😅😅😅fees when customers’ ask the bathroom location . Fees , fees Bring it on!!!😂😂😂
Absolutely unacceptable! We should never tolerate these fees to be pulled on us.
I really look forward if/when they hit the cable companies with this. My cable company tried to up my bill for rent on my cable box because my contract expired, but I argued that when I signed the contract it said it was supposed to be in effect for life. They buckled, but not until I took it through the Better Business Bureau. Now they charge all these additional random fees which more than offset any savings that I got. It's ridiculous what they're allowed to get away with. Especially since they lobby and succeed in keeping competition out of the market place. IMHO internet is an essential communication device - nearly every job requires you to apply online these days. They shouldn't be able to reach so deep into our pockets for nonsense.
I also don't understand how someone can argue that a junk fee is beneficial. In the end you are still being charged more than you want to pay, but via a junk fee which hides the true cost of the service. It creates deceptive practices as the product itself might be labeled as rather cheap but the hidden fees make the actual cost much higher plus due to the practice being deceptive in nature the customer may not be able to afford those additional fees as they've budgeted for the listed price of the product, especially when these fees are hidden. It would be better to tack that cost onto the item itself for transparency which would assist the customer in making sure they can afford the item. Not only that but it does indeed force proper competition as people would have a better sense of the value of what they are purchasing and if its a good deal for them. For example a business that sells an item rather cheap but the fees make the true cost more expensive than their competitor. It's not fair competition as their competitor is not only losing money due to not practicing deceptive marketing, but their prices appear much more expensive when the reality is that they are actually cheaper due to the lack of additional hidden fees. Basically we have cheaters in the market (go figure, not like we didn't know this already right?) and we need to crack down on these cheaters and make the market fair like it was intended to be.
Couldn't have said it better myself, if we don't put a stop to it now it will only keep getting worse. Next thing you know we'll be going to fill up our cars because it was a good price but then after you've pumped the petrol they add on a self-service convenience fee 🙄
And a return to sailing the high seas I go
Yeah tbh it seems like a law that says the price you see is what you pay including tax. That would solve all of this. It’s not about the extra $40 it’s about the fact that it looked like product/service was $40 cheaper than it actually is.
This is more of hidden fees than anything else. Companies can just eliminate it and add it to the final price.
EBAY charges the seller a 13.25% fee on the SALES TAX when on item sells !!! How do they get away with that? The sales tax has nothing to do with the seller. They can't give me an explanation when I ask eBay.
Im surprised no one mentioned the ridiculous amount of fees you pay for renting an apartment these days. There’s an insane application and administration fee, amenities fees for stuff you most likely will never use, a service fee for paying rent with your card, and a security deposit that the leasing property will find any reason to never give back to you. Dealing with rental fees would probably save consumers the most money out of any of these things.
Do the math on the $65 billion dollar number they gave in this video. It averages out to less than $5 a week for every adult in america. You have lost more from Biden's tax hikes and inflation than hidden fees.
Credit card fee's would probably save more because not everyone rents but most everyone has a credit card. Although if you pay the card in full each month there are no fee's. The convenience fee to pay your rent with a credit card is them offsetting their costs to accept credit cards. Every business pays a processing fee to the credit card company to accept CC payments, debit cards are cheaper on merchants vs credit cards. Credit card companies are making it on both ends, businesses and consumer's.
Sounds suspiciously like the property owners have hired on a Management Co. Great videos on those cretins
The worst one was my apartment buiilding required us to pay rent by auto paying on their website. Then theri website crashed and the charged us $10/day late fee while THEIR website was down. So I paid by certified check...and they charge me $45.00 late fee because it took them two days to cash the check. So i had to make a check to cover that PLUS the late fee on top of it to cover the fact they would charge me late fee for the two days it takes to cash my check to pay the late fees caused by their webstie being down. All in all their website being down cause me nearly a total of $100 extra bucks out of my pocket and 4hours of missed work which was more monet lost.
Several years ago I got hit with a fee for almost overdrafting (I think my theoretical balance dropped to 4 cents the day before I got paid). The fee itself then caused 3 subsequent overdraft fees because they "informed" me of the fee by sending a snail mail letter. I thought I had $30 more money than I actually had. So, $30 for almost overdrafting, then $90 for the overdrafting caused by the previous fee. Thankfully the bank merged with another bank and they now tell you via email or text when your balance drops and you can check online at any time.
I learned the hard way 30 years ago. I am always careful about my accounts. One time I made math mistake. I was charged 20 dollars because I was short of money. I immediately transfer 1000. I still got charge for fees even though I maintain balance. Reason, once it falls below, I have to pay the fees on every check for the rest of month. The bank told me link account will avoid it. No it will not. One time, my bank made mistakes n withdrew 3000 for no reason. It fell below because of the bank mistakes. The link account didn't help. I got the charge on all checks I wrote in that month. I had to call bank for that 3000. Bank admitted it was not fraud, and it was bank mistake. 3000 was put back. I had to call bank to reverse the fee. I didn't cause the overdraft, the bank did. The bank did reverse. The lesson the linked account didn't remove overdraft fees.
I live in Chile. A rather small developing country. Banking here is EONS more advanced than in the US. For example, we've been able to do P2P cash transfers (for free) for at least 15 years.
Convenience fee, WTF! That’s what I said when I paid electric bill online, it was $1 so that means every month they get millions of dollars for nothing 🤬😡🤬
well alot of time those fee goes to 3rd party company that process their online payment system.
@@jackli6592 so what party processes the checks that get sent in, no fee with that but someone has to physically input that 🤨
@@MrJnmill12345 visa, mc, amex, discover get those online fees. they charge companies to accept card payments. thats how they make their money. they charge store 4% and give you 1% cash back to make you force more stores to pay those fees. you are just a pawn getting a 25% commission to generate revenue for big banks.
Its to cover the payment processing charges
@@MrJnmill12345 ya that someone already been pay for, not everyone is paying online, process 100check or 1 check its the same, while process 1online vs 100online pay just add more cost on top of it. so why shouldnt they charge extra for the extra cost?
believe it or not, these fees can happen all at once:
bounced check fee $25
insufficient funds fee $40
account overdrawn fee $45
minimum balance fee $15
monthly account maintenance fee $20
I never understood insufficient funds fee. Does the AS/400 that processes the transaction get inconvenienced when there's not enough funds in the account? Does it need therapy from PTSD by a cheque being bounced?
@@the_kombinator these are just punishments from the banks
That’s why I no longer do checks; I do money orders so I know what’s left in my account is my money!
@@the_kombinator It costs time and money to process your transaction, reguardless of whether it goes through or not.
As for Mochi:
Insufficient funds and overdrawn account fees can happen simultaniously, but not for the same transaction. One charge went through, overdrafted your account, then the next charge was declined because you already spent more than they will loan you to cover it.
No half decent bank will charge both a minimum balance and account maintainence fee. If yours does, change banks. Any decent bank has only a maintainence fee, and only charges it if you do not either deposit $300 in a month or maintain a minimum average balance for the month. You only need to do one, and having your paycheck deposited into your account is the easiest thing in the world to do.
As for bounced checks, that's all on you. You filled out the check, knew that money was spent, yet spent it again anyway.
Stop spending money you don't have, and these fees go away.
So don't write bad checks, problem solved. Also, who writes checks these days?
I had so many junk fees at my last apartment that I was paying 200$ more than the contract I signed. Base price was 1600/month with mandatory 'trash valet service' (+30$/month), 'weekly pest control' (I never saw an exterminator, but +20$/month), 'Sewage fee (they had a line to the city, but charged a sewage fee bc they had pipes that connected to the city pipes that needed to 'be maintained'. +20$/month), etc.etc. It's literally just blatant theft in the apartment market.
On the overdraft fees, I've seen banks rearrange a day's transactions to maximize the number of transactions that are over the limit. Small transactions are processed earlier in the day. Deposits are processed later in the day. Also, if you don't use online banking and don't know you are over, they will charge you an additional extended overdraft fee, for each transaction, the very next day! 🤬
You are right everything is too high and we're getting rip off in every way can a American people wake up and change things around.
Vote Democrat. They’re the ones who want to actually help regular people. Only rich people and stupid people vote Republican.
Junk fees dont help the economy.
@@mingouczjcz3800 No they don’t? Do you even know what GDP is? Sounds like you’re just throwing around random words you’ve heard before but never taken the time to learn what it means
@@mingouczjcz3800 “Gross Domestic Product (GDP) is a measure of the total value of goods and services produced in a country over a specific period of time. Junk fees are unnecessary, unavoidable, or surprise charges that inflate costs while adding little to no value1. Therefore, junk fees are not included in GDP calculations as they do not contribute to the production of goods and services.” Junk fees have no effect on the GDP
@@devking321 junk fees are included in gdp
@@mingouczjcz3800 No they’re not because they have no effect on the VALUE of a product which is what GDP is calculated by
Junk fees distort gdp because nothing is being produced.
Restaurants adding maintenance fees on the bill without any prior notice is crazy. Happened to me recently at Six Seven in Seattle, they charged me $7 for “dock maintenance” because they are on the water. Bizarre
Sickkkkk. We go for a meal and pay for the restaurant maintenance.
should have took the bill and wrote a 7 dollar "arrival travel fee" for yourself and deducted it from the bill.
The thing I find infuriating is how little the advertised price of Internet services or cable TV has to do with what you actually have to pay. I signed up for a $39.99 Internet plan from Optimum. I actually pay $57.19/month, but I only pay that little because I bought my own cable modem and wifi router. If I went with the ones supplied by Optimum I'd be paying over $77/month, nearly double the advertised price. I don't have cable TV, mostly because there are similar fees that make the cost much higher than the advertised prices. I get lots of advertising from FIOS trying to get me to switch. I called them once and asked what the actual cost would be as opposed to the advertised price and was told they weren't sure.
I was shocked that my DSL cost $49.95, is- ready for the total? $49.95
Best thing is Air BnB's cleaning fee. Why do I have to pay for something that is a normal cost as part of your business? It's like if a restaurant charges a fee for ingredients on top of whatever the bill is.
The issue is that they still expect you to clean. I recently stayed at a house and the host mandated you to take out all trash, wash all plates and silverware and a whole bunch of other things.
Last time I rented Air BnB I did not pay a cleaning fee IF (!!) I would leave the apartment behind in immaculate condition, which I did
That's why I never used them. Regular hotel is cheaper.
One of my pet peeves is my out of control HOA fees. No matter what they go up faster than the rate of inflation each year. It drives me crazy.
HOAs are evil and should be illegal. HOA Nazis who torment their communities deserve deth. If you agree with me let's talk.
Get involved with the HOA. On the committee. Read the by-laws. Attend meetings. Review the accounting such as costs paid out.
You agreed to the HOA.
@@JamesSmith-ij8nj I'm sure she didn't realize what she was getting into. HOAs are filth in their current form and an open extortion racket. I would like to see them banned.
@@JamesSmith-ij8nj Yeah, but not yearly increases of 25 percent.
Great topic! Glad you published this video to layout the issue.
When I lived in NY, I was suddenly charged by RCN with a fee meant for their network expansion. I called and said that that is part of their investment plans, not my problem and I should not be financing that. After that RCN removed that fee completely. I can't believe the things the US system allows!
This is out and out stealing from consumers!
ATT did this to me when I switched my cell phone service provider after putting up with really bad phone service for over 10 years. I was charged $200.00 for Direct TV which I never had. They committed fraud b/c for over 2 years they claimed me under Direct TV. This way AT&T padded their Direct TV numbers. I NEVER had Direct TV service, never ever! Still got slammed with $200. Fee for leaving them (Direct TV). AT&T is notorious for treating long time customers like crap.
Props to calling out their parent organization 🎉
guess they're already fired.
Reporter ethics is why no other reason.
Never, ever will i pay fees. I refuse to.
My credit union charged me a $5 maintenance fee.
I cancelled my account and switched to Ally financial where there's no fee and even if you accidentally overdraw your checking account there's no fee.
I had a hospital try to charge me $6,500 for an emergency visit. They said in the letter if i paid the bill in full they would lower it to $ 4,000.
I simply didn't pay any of it. Not a penny.
There's always a way around it. You just have to be willing to investigate how.
I'll be 66 in a few days. I have started reviewing bills etc. looking for slimy business practices. I won't go back. American businesses have become scam artist. Very deceptive and I resent this. The greed and lack of any type of morals in this country is just mind boggling. I just tend to buy less and less.
Tipping at a restaurant is a Junk Fee. Why should I tip 15%-25% on top of my bill just because a business doesn't want to pay their employees?
Why should I pay 50-120% more for my food by sourcing it at a restaurant? Even when I travel I eat from supermarkets or markets. The only way to have my voice "heard" is by how I spend or don't spend my money.
Tipping is voluntary, it is not a fee.
My personal favorite is the credit card processing fees to pay rent at apartments. Fees that still exist despite every apartment preferring renters pay online now.
That one actually makes sense though, the credit card processors charge the merchant a few percentage points and Visa also gets their cut. Direct deposit payments should be free though .
EBAY charges the seller a 13.25% fee on the SALES TAX when on item sells !!! How do they get away with that? The sales tax has nothing to do with the seller. They can't give me an explanation when I ask eBay.
It's against credit card processor policy to charge extra fees for credit card transactions.
Definitely report them to Mastercard, Visa, etc.
@@Alvin_Vivian we set a higher price and do cash discount. it sounds better to customers when you say here is an opportunity to save money vs you got to pay an extra card fee.
@@thefpvlife7785 they charge it on shipping too dont they?
Point of fact, "junk fees" are a form of fraud and therefore tangible property crime.
Thank goodness for this!
This reminded me of Verizon Wireless, they charge you an extra $10.00 fee if you don't opt into electronic statements and set up automatic payments with your account. It doesn't matter if you pay your bill early every month (electronically but not through auto-pay) and the paper statement cost them next to nothing, let's face it Verizon is expensive so they got that cost covered to begin with. No, let's charge everyone an extra $10.00 because we need to think about those juicy bonuses every quarter! The people that run companies these days have gotten very creative with charging fees.
For real estate purchases, there are tons of junk fees like documentation fees, loan fees, flood cert review fees, signing fees, etc.
But, title insurance isn’t a junk fee. You’re literally buying an insurance policy to protect against any expensive challenges to your property ownership. I hate paying closing costs like anyone, but this one actually adds value. Some people can choose not to get title insurance and take their chances, so it’s not some required junk fee by the title company.
We were told it’s mandatory
@@Privateuser9999 Who told you?
Property buyers can always choose not to take title insurance.
Some fees may seem unnecessary to you, but you want to get better service from others and aggressively too low, I would rather pay these
This all started back in the late 70's with the practice called "unbundling", where a product or service that used to have a single flat fee, became a series of fees for the different components of the service.
Airline ticket: $$
Facility fee: $$
Fuel surcharge: $$$
Airport fee: $$
9/11 Security fee: $$
Seat fee: $$$ (after you bought a ticket, you have to pay an additional, mandatory, fee for the privilege of sitting down - which is a safety requirement.)
Carry-on bag fee: $$
Luggage fee: $$$
(etc.)
Total cost of a ticket: 🤬🤬🤬🤬🤬!!!
I hate the $50 New Phone fee. They provide nothing for you. It's just the cellphone company being like "Oh, you replaced your phone? We're hitting you with $50 for that!" even though my phone company sent me a letter saying they were no longer going to support my previous phone.
To hell with the resort fee, when the $69.99 Motel 6 gives you free WiFi but the $469.99 Caesar Palace suite charges you $9.99, this is pathetic.
Then don't go to Caesar's. I'm sure they'll miss you with your Motel 6 mentality.
Make listing these fees mandatory for businesses in a receipt and give consumers right to Opt-in to pay them.
@@frankthefkintank They should just advertise the final price period. Even 3rd world contries can do that, I'm sure the big USA can do that. And also get rid of deceptive practices asking fees for no reasonable reason.
@@frankthefkintank it's a fair comment.
My main point comes from recent fees that I recently encountered:
- 3% Convenience fee when paying online vs mailing a check (I didn't confirm if there is a check processing fee when mailed)
- mandatory gratuity fee for kitchen workers (I think it is known that tips are usually split between server and kitchen)
- fair wage fee (why don't pay a fair wage in the first place?)
What is the point of this?
Am I expected to pay a higher bill (thanks, inflation), "at least" 20% in tips, AND fair wage and mandatory kitchen tips?
No, thanks.
Maybe this is a good way, when do you think this thing can be realized, tell me your suggestion
One of the worst junk fees I know of is the "shop supplies" fees that automobile repair shops charge. I think that there is a difference between late fees and junk fees. The late fees may be excessive but it is known in advance unlike many other fees.
I get a fee for “convenience” fee to pay for my registration or drivers license.
If you go in person to the DMV, you have to pay “service” fee.
You can’t avoid it!
It is just a way for them to make more money without actually doing anything to set themselves apart or provide a service legally. This is what comes with the mindset of showing your company is making more money than actually doing anything productive. This will bite the US economy in the butt in the end. Made in the USA used to mean quality and well-made. Now it just means it costs more for something that you can find made elsewhere that is made better and built to last.
Boomers were taught to go to school and become white-collar and make real money. Now everyone wants to be the boss without knowing how to make or do anything and come up with made-up ways to look like they bring value. Now people overpay for education that everyone has so they make up stuff like this to show profit.
Didn’t mention the insane fees you pay for using services like Uber, Uber Eats, or booking hotels thru apps like Hotel Tonight. The final price is legitimately 40% higher than you thought it’d be after doing your shopping/research. Insane that that flys.
i;ve never had this with uber or hotel tonight. ubereats has a ton of fees at the end.
Ubereats have zero fees in Poland. Just few bucks for delivery.
The year before the pandemimonium began, my family & a group of other families we're friends with decided to stay overnight at a hotel that was hosting a special event -- a hotel that was only a 45-minute drive away due to traffic. We got slammed with a "resort fee" on each room that came to well over $100 just for my family. The beds were literally the least comfortable we'd experienced (my mattress was so high in the middle that I almost rolled out of bed several times that night); the narrow escalators throughout the event areas were absolutely jammed to the point where it was dangerous; there were almost as many check-in and check-out problems as there were check-ins and check-outs; the parking garage exits all funneled into just 2 lanes so it took over 20 minutes just to get our car from its parking spot onto the street; and the facility's elevators were so slow that at one point we all chose to take an almost 10-minute walk across the complex because we had already waited *15* minutes for an elevator on our floor, and when we walked past that same bank of elevators after finally getting to the ground floor, 3 or 4 of the people we'd been waiting with were just getting off -- and told us the rest of the people who'd been waiting with us were still waiting (or had begun taking the same walk we had). But this was a "resort" so they got to charge us extra fees... and did I mention that they screwed up the "included" dinner vouchers and breakfast vouchers...?
The rule should be simple: no mandatory line-items on the invoice. Period. The only mandatory line-items should be the actual items or services being purchased (at their initial advertised prices) and taxes. All other items (which are almost by definition "junk" fees) should be 100% optional and disabled by default.
BOA bank of America monthly maintenance fee went from $4 to $12 overnight.... for what 🤷♂️
there's always that one person who's like "but if we stopped grinding orphans into paste it might result in higher costs to the consumer"
"there's always that one person who's like"
A teenager! Uses "who's like" instead of "who said".
@@thomasmaughan4798 yeah that would be you lmao. no one even pointed it out until you did
Except it's not "that one person." It's Republicans. The video even mentioned it.
@@joralemonvirgincreche "It's Republicans. The video even mentioned it."
Did you believe it? Republicans grind orphans into paste? Where might one procure this paste? What purpose does it serve?
@@furry8298 "no one even pointed it out until you did"
That is true of every first comment on a particular thing.
LIKE is similar. Lavender is like blue. Now if you insert a pause it becomes Lavender is like, you know, blue.
I recently bought a new car at a dealership and had to pay a $480 "processing fee" in addition to the MSRP. I happily paid it because the auto companies are holding back inventory so MSRP is now a really good deal.
I’m glad this is being talked about.
The university I went to charged and still charges some scam "PIRG" fee. While it wasn't mandatory, you had to jump through hoops to get it off your tuition bill.
friends of mine recently drove to Las Vegas. there was a charge for self parking as well as hotel resort fees. speechless
Yes the DoubleTree in Orlando, FL charges you to park your own car😭😭 $20
That's why we stopped going to Vegas!
Hidden fees are criminal, all fees must be declared before you charge me , otherwise I feel ripped off, and won't want to stay at a hotel or buy concert tickets at all.
Those fees are HIDEOUS!!!! I am SO sick of them. I first ran into them in Hawaii years ago. The Hyatt on Maui charged us a 10.00 spa fee. We (so dumb in those days) called them and told them we would not be using the spa. Ha ha!!! NOW that fee is 40 or 50 dollars!!! Parking fees. We had free self parking for years there and then suddenly it was like 5.00 per day THEN. Again, like 45.00 per day now. Heck, a couple of years we used valet. It was so cheap then.
My other introduction was our 45.00 per night room at Treasure Island, in Las Vegas, finished up at 110.00. Now its 195.00. Going in May. Heck, they have all those new stadiums to pay for. Have to underwrite the NFL or Major League Baseball.
Yes I’m sick of these fees!! I stayed at a hotel for the weekend bill was suppose to be 360 only to get charge 420!! They had the nerve to tell me it’s “ Destination fee.” Which was $30 dollars per day extra telling me it was for the free wifi and coffee are you freaking serious!!
Wow that's disgusting. That's so beyond ridiculous. Next time complain and demand it's removed. If they give you grief tell them you will call the corporate office. No excuse for that nonsense- just greed.
That's awful.
The three 'buckets' of fee types seems largely confined to product or service type rather than describing what makes the fees fundamentally different.
To me, the more meaningful categorizations would be:
- Whether fees are disclosed at the time of the transaction allowing the consumer to consider them as part of completing a purchase.
- Whether fees are avoidable or a penalty for deviating from prescribed use, such as overdraft or late fees, as part of consuming the product or service allowing the consumer to behave in such a way that the fee won't apply to them.
- Whether fees are mandatory yet not core to the value of the product or service being delivered (meaning whether consumed or not), such as resort fees, TV cable local carriage fees, or broadband infrastructure fees.
At least this is the kind of analysis I've seen in other CBNC reports.
This is similar to tipping … employers want guests to pay their service staff so that they don’t have to … and percentage amounts have creeped up as well that is expected.
Baggage fees or restaurant delivery fees are a way companies divert tips to their own pocket instead of raising product prices. They tip themselves mandatorily with these fees while chipping away at what a customer used to tip the employee.
I understand late fees to some extent. But amenity fees in hotels, donations, resort and destination fees, convenience fees are just mechanisms to loot the consumers.
Great reporting on a very important subject! I find the cell phone companies are some of the worst offenders! These junk fees should be illegal.
“fee creep” needs to stop, agreed. Consumers should send an invoice to the “fee creeper” and send them notices of increased interest, the longer they delay payment. It’s a two-way street.
Yup. This is a thing.
CRTC (Canadian regulatory body) - Cable Companies must offer $25/mo limited TV.
Cable Company:
$25/TV!
(Mandatory two 4K PVRs, $15/mo each.)
I have gone into the homes of seniors. They'll have a 4K PVR plugged into an old CRT TV with an adapter. They have one TV in their home, and are getting billed for two 4K PVRs. The tech never left the second one, so when they fail to return it if they ever change providers, they'll get hit with a $300 non-returned equipment fee as well.
Classy.
An Orlando hotel charged me a resort fee, but it was just a normal hotel without a restaurant, bar, gift shop, convenience store, room service, entertainment, etc. Yeah I hate fees, it's like every service you buy comes with a fee tacked on at the end.
They have a resort fee in Selinsgrove PA. I never learned where the resort is.
I think resort fee is getting popular. Las Vegas n Hawaii have. No, it's cheaper hotels. The more pricer hotels come with the higher resort fees. In other countries, if you want to use swimming pools , you have to pay for. In USA, you have to pay whether you use or not.
The one that is ridiculous is the hotels charging for parking.
Parking that was already out there in the open, unsecured.
Lol.
They raised room prices by 50% , and charge for parking per night.
Unbelievable
Well that's why I ride the bus.
@@carlgharis7948
Bus is not a thing in the USA
😂🤣😂🤣
@Dangic23 well it is for 19% of the population. Kinda like cell phones in the mid 90s yes they did exist however not everyone you pass by would have a phone like today. Granted the reason is because bus service in the U.S. is so crappy that only 19% of the population happens to be somewhere with adequate bus service. So it's not totally unheard of. Like in 1995 you'd encounter a handful people who had a cell phone. I was young. My parents didn't and I believe 3 kids in my class had a parent who did if I remember correctly
@@carlgharis7948
I’m from Manhattan, don’t live there now, but have lived in 7 other states.
Bus definitely useful in the heart of some cities.
But from a Country point of view, they are non-existing. Same goes for trains.
We only have cars and airplanes to move us around.
@Dangic23 depends ware you want to go exactly. I have to say some places are surprising pretty easy to get too. And others.. a hassle and a 1/2. For example get from Madison to Dubuque you have to take the bus to Chicago set thier for at least 3 hours then take the bus that going to Omaha get off in Davenport. Then the bus going to Dubuque only runs twice a day. Best case sanario you have to wait almost 6 hours for it after getting off in Davenport. So it takes at least 14 hours to go 90 miles without a car in that example. Meaning Going from Madison to Dubuque on the bus you could also get almost to Pittsburgh in the same time because that bus leaves out of Chicago pretty frequently.
These junk fees are a logical evolution of the US economy on the whole. Companies have been sneaking in extra charges since before I was born, by refusing to pay a living wage for their service staff and expecting me to subsidize with a tip, by putting up a false price for a product that doesn't include sales tax, etc. Now you have websites that claim $20 for a product and $5 for shipping, but when you get to the checkout page it adds another 20% that wasn't listed in the price. Until robust and enforceable legislation is put in place that forces companies to advertise exactly correct prices, this kind of stuff will keep increasing
Title insurance is not a junk fee. It's a needed service that provides protection to both lenders and borrowers to determine whether there are undisclosed liens or issues with the title or if the legal description of the property matches what is being sold. Title theft is real and has been on the rise since the start of the pandemic.
It’s gotten so bad. Especially after all the evictions and short sales. Title insurance is 100% an essential service for homeowners. And it’s not even particularly expensive for the issues that it solves.
You have missed the point. Essential elements of the transaction should be part of the base price not listed and charged separately.
0:38 a charity fee! I’d have cursed them out for that one. The audacity
Add to this the fees we pay for doing their work. For instance, if I fill out a change of address card and drop it in a USPS mailbox, someone has to take that card and enter that info. into their system, but that's free. However, if I go online and do their work for them (likely more accurately), I have to pay $1.10. And if I write a check and mail it to my car insurer, all it costs me is a first-class stamp. But if I set up auto-payment online, they add two dollars to each monthly payment, even though I've saved them labor.
Tipping was the very first and most extreme form of junk fee. In Australia you must be quoted the full price of a service or product. Any extra fees that are not disclosed prior to the event would be the subject of an ACCC investigation. Hence tipping cannot be made compulsory. Nor can you add tax on top of a bill. Even if a bill is itemised there must be a total at the bottom which is what you have to pay. Note that whenever companies OPPOSE a change saying that it won't save the customers money, that is prima facie evidence that the companies are making money by keeping the fees. They threaten that if their hidden fees were opposed that it would somehow cause an increase in charges. All they have to do is to be upfront about fees. And they are NOT.
Usually these added fees are a sign of a company collapsing. I noticed this in the early 2000s before the crash in 2008. For instance now Charter Communications will literally double charge you almost every single month and you really got to be paying attention. Wells Fargo is obviously in financial trouble as well.