by Alex Lloyd Gross
If you have ever tried to pay a bill online or over the phone, you get hit with junk fees, designed to make companies rich and separate you from your money even more. A convenience fee, or a company fee, a processing fee is all just added money. Imagine your electric was shut off for non payment and you need to get it back on now. Sure you can pay through mail for free but that will take a week. Maybe more.
Enter the junk fee.It is a fee that a lot of people cannot afford. You either pay it of suffer. The fees are outrageous and they add up. Now Councilwoman Rue Landau wants to put an end to them. In pending legislation, Landau said that The proposed ordinance would regulate how and when businesses can charge fees for online payments, as well as require that all additional fees be disclosed upfront and justified in order to be legal. The legislation aims to reduce financial burdens on Philadelphians and ensure residents can access essential services without facing unnecessary junk fees.
This bill creates three mandates that protect consumers from junk fees when paying bills online. This includes:
- Free Alternative: Online portals must offer at least one payment option that is entirely free. The free option must be accessible from the same online portal.
- Cost Justification: Requiring cost justification for any fees, backed by documentation of actual processing costs, upon request. Businesses that want to keep charging must prove the fee is real and necessary.
- Fee Transparency: Requiring up-front disclosure of any fees that will be charged, before the transaction occurs. This means no surprise fees at the end of a transaction,
The kinds of fees that would be covered under this new legislation include “convenience” fees that can range from a couple of dollars to sometimes 3-5% of the total bill, that customers pay when submitting payments for college tuition online, transaction fees when paying rent through an online portal, fees tacked onto health care bills paid online, and the fees that Philadelphians pay when using websites to pay parking tickets, water bills, or licenses.