White House slams economic problems with attack on ‘junk fees’ two weeks on from Election Day
U.S. President Joe Biden delivers remarks on the U.S. economy from an auditorium on the White House grounds in Washington, U.S. October 26, 2022.
Jonathan Ernst | Reuters
The White House is working to assure voters of the President Joe Biden are doing everything they can to reduce the cost of living with just two weeks to go until Election Day as polls increasingly show the economy as a top concern for Americans.
Supported by CFPB Director Rohit Chopra and FTC Chairman Lina Khan at the White House on Wednesday, Biden announced a major initiative by his administration to cut “junk fee” from banks, airlines, cable companies and other industries. Garbage fee is Unexpected costs are added to the consumer’s bill.
The speech was billed as “a comment on new actions to give families more breathing space.”
“One of the things that I think is disappointing to the American people is that they understand the world is full of turmoil,” Biden said on Wednesday. “They know that Putin’s war has caused a lot of stress for Europe and the rest of the world and the United States – everything from blocking grain shipments to oil. And they want to know: We are What do we do? And there’s a lot more going on in terms of what we’re doing. It’s increasing.”
Democrats are under pressure to show they are tackling inflation as the midterm elections approach. In recent weeks, voters have increasingly ranked the economy and inflation as their top concerns in opinion polls, raising concerns about abortion and the state of democracy. Polls show voters tend to favor Republicans on economic issues.
One salient point for Republicans is the price of gas. Biden has focused on falling prices at the pump, frequently highlighting how the average gas price in the United States has fallen from a peak of more than $5 a gallon in June.
“We’re making serious progress in bringing prices close to pre-pandemic levels,” Biden said. “I will work very hard to make sure that the oil companies pass the one-barrel discount to the pump.”
The Biden administration’s latest initiative, to reduce “junk fees,” has been in the works for months, he said, under pressure from regulators or ordered companies to disclose or remove countless fee type. Consumer Financial Protection Bureau Implement new guidelines Wednesday, prohibit banks from charging unexpected overdraft fees on debit transactions and fees on deposits that are subsequently bounced.
“And we’re just getting started,” he said, adding that there are tens of billions of dollars in junk fees in industries he has directed his administration to reduce or eliminate. The Federal Trade Commission began working on a rule last week to “deal with unfair and deceptive charges across all industries – fees that are never disclosed… and there is no way to avoid this charge.”
He cited processing fees for concert tickets, “resort fees” at hotels, “excessive” credit card late fees, airline booking fees and contract termination fees to prevent consumers from transferring change cable or internet plans for some fees the regulator is dealing with.
“The unexpected charges cause companies to sneak in the bills because they can,” he said.
Airlines that have added loads of fees over the past decade, such as priority seat fees that don’t come with extra legroom. Major airlines have also introduced basic, no-frills fares that are less flexible than standard economy class tickets. The Proposal of the Biden board received a response from the service provider.
Delta Air Lines earlier this month said customers already have access to fees and pricing, and the airline plans to make a formal comment on the proposal.
“They’re expecting a service provider to provide a moment to do a search for any potential fees or rates without the need for a fee,” said Peter Carter, Delta’s chief legal officer on the October 13 call. care about who is really looking.” “So it could be an unrelated charge for the consumer, which, of course, can create quite a bit of confusion for consumers.”
Chopra, who spoke at the press conference, said bank overdrafts and check fees “could be unfair and illegal.” Biden said the move would “immediately begin to save Americans billions of dollars in unfair fees” and hold corporations accountable.
“My administration is also making it clear that a surprise overdraft fee is illegal,” he said.
CNBC reporters Sarah O’Brien and Leslie Josephs contributed to this story.
