Junk fees: How to avoid them or fight them

Many consumers see junk fees in various forms. Some people use junk fees as a catch-all phrase for any charge they don’t like. The topic is certainly getting attention these days, with the White House talking about a new crackdown, buzz about the Junk Fee Prevention Act introduced in Congress and new rules proposed from the Federal Trade Commission (FTC).

There are three simple definitions of a junk fee:

  1. Mandatory charges that aren’t disclosed up front. It could be a “resort fee” slid in just before you book a hotel room, a required company charge added to monthly cell phone bill, or a service fee you can’t avoid when purchasing an event ticket. Many companies are guilty of “drip-pricing” – prices that don’t include everything you must pay.
  2. Optional charges that are portrayed as mandatory or are given official-sounding names to deceive consumers or discourage them from questioning the fees.
  3. Mandatory fees or charges buried in an unreasonably long terms and conditions document. You might expect a 10-page document for a car loan, but not to book an airline ticket.

Here’s some simple advice to protect yourself from junk fees:

  • Read everything before you pay, sign, initial or agree.
  • Don’t sign or agree to anything that you didn’t actually read.
  • If there’s something you don’t understand, ask what the fee is for. Getting a clarification in writing (or via email) is better. 
  • Don’t be afraid to walk away or from the transaction if you don’t like the extra fees.
  • Pay by credit card. Never by debit card. Undisclosed fees are easier to dispute with a credit card. And debit cards expose your whole checking account to all kinds of additional problems.
  • Note the names of anyone you talk with. Put a note in your calendar or send yourself an email of the day and time of day when you talked with the person. It helps you fight a fee if you can document that you talked with this person on this day and were told this.
  • Keep copies of all receipts, agreements, emails, texts. 
  • If you’re hit with an undisclosed or misleading fee, complain to the company and file a complaint with your state attorney general’s office of consumer protection or the FTC.
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