President Joe Biden unveiled his plan to tackle "junk fees" that he says cost Americans millions of dollars every year.
The White House says the fees fall into four different categories:
- Mandatory fees that often hide the full price
- Surprise fees that consumers learn about after purchase
- Exploitative or predatory fees
- Fraudulent fees
Biden said that the Consumer Financial Protection Bureau is making it clear that "surprise overdraft fees" are against the law and
"These are fees charged for overdrawing a checking account even though at the time the account owner made a purchase, the bank’s website or ATM terminal showed the customer that they had sufficient available funds for the purchase," the White House said in a statement.
The Biden administration is proposing rules to restrict junk fees in the auto and airline industry.
"Some airlines, if you want six more inches between you and the seat in front, you pay more money, but you don't know it until you purchase your ticket, " Biden said. "Look folks, these are junk fees. They're unfair and they hit marginalized Americans the hardest."
Inflation is having a major impact on many Americans as prices for various goods and services go up.
Biden said his goal is to give Americans some "breathing room" in their budgets.
