Biden targets hidden ‘junk charges’ from banks, cable TV, live performance tickets By Reuters

By Hannah Lang, Doina Chiacu and Trevor Hunnicutt

WASHINGTON (Reuters) -President Joe Biden pledged on Wednesday to crack down on shock charges shoppers are pressured to pay on cable payments, lodge rooms and live performance tickets, whereas U.S. monetary regulators declared financial institution charges for bounced checks and overdrafts unfair.

“These are junk charges,” President Joe Biden informed reporters on the Eisenhower Government Workplace Constructing. “They profit massive firms. Not shoppers. Not working households. And that modifications now.”

Biden signaled his administration would take a look at live performance tickets, resorts and airfares shortly after the U.S. Shopper Monetary Safety Bureau (CFPB) issued steering that shock overdraft charges and sudden depositor charges for bounced checks are doubtless illegal.

The White Home stated the transfer may get rid of billions in banking charges.

Overdraft charges can catch shoppers off guard when their on-line accounts nonetheless present a constructive stability, whereas some prospects might discover they owe a payment for depositing a examine that they didn’t know was dangerous, the CFPB stated.

The company stated that each charges doubtless violate the Shopper Monetary Safety Act’s prohibition on unfair charges which can be unavoidable to shoppers.

In a reality sheet, the White Home famous that financial institution overdraft and non-sufficient funds charges accounted for an estimated $15.5 billion in income for banks in 2019.

Strain by the regulator pushed income from such charges down 90% at Financial institution of America (NYSE:) this summer season.

Biden added that the Federal Commerce Fee had began work on a rule final week to crack down on “unfair and misleading charges throughout all industries.”

He cited processing charges for live performance tickets and resort charges at resorts as two objects his administration is inspecting.

“We’re simply getting began. There’s tens of billions of {dollars} and different junk charges throughout the economic system that I am directing my administration to scale back or get rid of,” Biden stated.

“We applaud President Biden’s advocacy for payment transparency in each business, together with dwell occasion ticketing,” Stay Nation Leisure (NYSE:) Inc stated in a press release.

“This solely works if all ticketing marketplaces go all-in collectively, so that customers actually have correct comparisons as they store for tickets.” Shares of the corporate, which owns Ticketmaster, fell 4% on Wednesday.

Biden’s remarks comply with a gathering the White Home Competitors Council held final month, during which he ordered federal businesses to take steps to scale back or get rid of hidden charges, costs and add-on prices, which he stated have been weighing on household budgets.

The administration has come beneath intense strain to tamp down inflation that has hit four-decade highs.