Atty General Weighs In On Junk Fees
by Alex Lloyd Gross
Aug 9, 2023
Michelle Henry, Attorney General for Pennsylvania came out against junk fees that hurt consumers. These fees are worthless and only benefit the person that is charging them.
Far too often someone will see something advertised for a price. When it’s all said and done the price is much higher, due to these fees. Call them resort fees, overdraft fees or convenience fees, they are an inconvenience at best and do nothing except financially rape those that can least afford it.
Your credit card is due on the first. Due to a payroll mix up and things out of your control, you don’t get paid on time. This means your payment is late, or maybe you went overdrawn on your account. Not to worry, your friendly banker will charge you fees of up to $50.00. Attorney General Henry is trying to put a stop to this.
In August 2022, the Office filed suit against Mariner Finance. Mariner charged Pennsylvanians more than $27 million in junk fees and interest for add-ons from 2015 to 2018 and another $120 million in 2019. This case is in active litigation in Federal Court in Philadelphia, with the Office of Attorney General requesting that Mariner refund all junk fees and associated interest, pay penalties, and stop charging junk fees, among other relief.
In April 2022, sixteen Attorneys General– including Pennsylvania– called on the CEOs of some of the biggest banks in America – JPMorgan Chase, Bank of America, U.S. Bank, and Wells Fargo – to eliminate harmful junk fees including overdraft fees and non-sufficient fund fees.
“Junk fees” are also a problem in the rental housing market, especially in college towns where tenants are often first-time renters. The Office of Attorney General settled such a case last year in State College where a landlord was illegally charging a 15 percent administrative charge on top of charges assessed for damages.
In 2021, the Office reached a landmark settlement with Marriott International regarding their mandatory “resort fees” being charged when a customer checks into the hotel. Many travelers have been misled by the rates offered by hotels due to the “junk fees” that were added later. Marriott now has a policy in place to be transparent in the disclosure of all mandatory fees, including resort fees, as part of a hotel stay. The Attorney General also testified that “there is still more work to do in the short-term rental market, where consumers are often surprised by the size of the fees that inflate the total cost far above the nightly rate.”
The Taylor Swift Era’s tour was filled with what many call unreasonable fees, that saw some people having to pay hundreds of dollars in fees. Very few people paid to see Swift and got into the venue for less than $100.00.
“We are fighting for basic fairness and transparency. Consumers deserve to understand what a loan, a house, or a vacation will cost– and exactly what terms they are agreeing to. At the same time, all businesses deserve to compete on an even playing field, where the price is the price, with no hidden or surprise fees.”
When someone is behind on their bills, the last thing they need is their utility shut off and then get charged an insane fee of up to $50.00 to get service restarted for basic ,life sustaining necessities. Those companies that do this should be ashamed of themselves and should be forced to give back those fees with interest.