Federal and state regulators are cracking down on so-called "junk fees," which companies often use to hike prices on consumer products above what is advertised.
These unexpected fees -- on hotel rooms, cars, concert tickets and more -- cost people tens of billions of dollars each year, and countless hours wading through the fine print of companies' terms and conditions.
Deirdre Cummings, legislative director for the Massachusetts Public Interest Research Group, said these sneaky practices need to stop.
"If you're going to advertise something for sale in Massachusetts," said Cummings, "you have to disclose up front what is the cost. What are you charging?"
The Federal Trade Commission has proposed new rules requiring businesses to do just that, and is accepting public comments through January 8.
Massachusetts Attorney General Andrea Campbell has also proposed stricter state regulations to ensure businesses provide clear and accessible information on whether these hidden fees are optional or required.
Campbell has said she also aims to simplify the process for canceling trial offers and other recurring charges online.
And Cummings said new rules would help ensure markets are fair and competitive, and they would be made permanent.
"At a federal level, laws can change based on who's in the administration or not," said Cummings. "And so, if something were to happen on the federal level, then we would have our own state protections here in Massachusetts."
Cummings called the proposed rules "common sense," and said Massachusetts residents can weigh in during a public hearing and comment session this week in Boston.
She said consumer protections regarding junk fees will only be stronger the more people share their own experiences.
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Some New York members of Congress are trying to repeal bank overdraft fee regulations.
The Consumer Financial Protection Bureau created a rule capping account overdraft fees at $5, which the agency estimates could save people nationwide $5 billion.
But a bill coming up for a vote in the U.S. House this week would repeal it, allowing banks to charge up to $35 for these fees.
Rebecca Garrard, interim co-executive director of Citizen Action of New York, said overdraft fees often harm those who can least afford them.
"It's devastating," said Garrard, "and it contributes to debt that people are unable to remove themselves from, and exacerbates a crisis of poverty and affordability that's already problematic."
Though some New York U.S. Representatives, like Rep. Dan Goldman, D-Manhattan, favor maintaining the overdraft fee limitations, others, like Rep. Mike Lawler, R-Pearl River, are under pressure to end these protections.
New York is among the states that have also addressed this issue. In 2022, the Department of Financial Services developed a rule reducing or eliminating some of the fees banks can charge.
The bill is seen as one of many moves to undermine the CFPB. The agency's acting director, Russell Vought, implemented a stop work order and numerous employees were laid off - until a federal judge blocked the layoffs.
Christine Chen Zinner, senior policy counsel for Americans for Financial Reform, said the stop work order is a green light for financial companies to defraud and gouge customers.
"I mean, every corporate bad actor in finance has a free pass from the Trump administration to make life more expensive and less fair for families all over the country," Zinner observed.
A CFPB report finds 81% of households that frequently incur overdraft fees had difficulty paying bills in the last year.
A 2024 Data for Progress poll finds voters across the political spectrum approve of the agency's mission, although most aren't fully aware of its role.
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This session, Minnesota lawmakers are expected to take a strong look at preventing more fraud attempts against state government. Meanwhile, consumer advocates hope they do not forget about separate scams increasingly targeting everyday citizens.
Organizations such as AARP said consumer fraud has reached a crisis point, with federal data showing U.S. consumers reported losing more than $10 billion to fraud in 2023, a record high.
Cathy McLeer, state director of AARP Minnesota, said in a digital world, it is getting harder for authorities to clamp down on the threats and give people an avenue to recoup what they lost.
"In many cases, these are bad actors who are overseas," McLeer explained. "You can't track them down. And it's very, very difficult for anyone who has been defrauded to get even some of those resources back."
McLeer pointed out such situations can be especially harder on older adults because their life savings can quickly evaporate.
A proposed bill would create a state-managed restitution fund, where proceeds from civil penalties would be redirected and awarded to fraud victims having trouble getting their money back. The bill is sponsored by lawmakers in both parties but it is unclear whether it will gain traction amid other priorities.
A key provision in the bill said Minnesota's attorney general has to bring a case against the scammers and obtain a court order. McLeer argued the extra tool might prompt more people falling prey to fraud to speak up.
"We also know that so much fraud is underreported," McLeer observed. "We believe that having a Consumer Fraud Restitution Fund would provide the incentive for more individuals to report financial crimes, frauds and scams when they happen."
A handful of other states have created similar funds, including North Dakota in 2023. Meanwhile, AARP Minnesota will host an online discussion on the topic Thursday at 10 a.m. CT. The public is invited to take part.
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Military borrowers pay higher costs and face greater financial risks than civilian borrowers when taking out credit to buy a car - according to a new report from the Consumer Financial Protection Bureau.
The report found service members tend to borrow larger sums, at higher interest rates over longer terms.
Rosemary Shahan, president of the Sacramento-based nonprofit Consumers for Auto Reliability and Safety, said yo-yo scams are common - where the victim signs an initial contract on good terms but then the dealer claims the financing fell through.
"And then they say, 'If you don't agree to sign this other contract where we're charging you for a lot of worthless add-ons you don't really want and a higher interest rate,'" said Shahan, "'then we'll report the vehicle stolen, and you'll be in trouble with your command, and it'll ruin your career.' "
The report finds many service members are young and far from family members who might help them negotiate a large purchase.
Last year under former President Joe Biden, the Federal Trade Commission finalized the CARS rule, which would combat dishonest sales tactics. Automakers sued and last month a federal judge put it on hold.
Shahan said the CARS rule would require dealers to tell you the price up front before you even go to the lot.
"It also has additional protections for military service members," said Shahan. "It prohibits car dealers from representing that they're somehow affiliated with the military, or have been approved by the military when that's not true, and would also require them to be more honest about the price of the add-ons and actually get your affirmative approval before adding them."
The Federal Trade Commission under the Trump administration will now have to decide whether to stand behind the rule and fight for it in court, or withdraw it.
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