CHARLOTTE — American shoppers waste billions of dollars a year on ‘junk fees’.
These fees are a part of everyday life, from resorts to airlines, and even late credit card fees are taking money out of your pocket.
For example, a room at a resort in Las Vegas may cost $622 a night, but there is a $160 resort fee, making the real price $781. If you factor in food and entertainment, hidden fees could be costing you twice as much.
Proposed legislation to ban these fees, known as the “Junk Fee Prevention Act,” was introduced to Congress earlier this year to limit and eliminate junk fees imposed on consumers.
With no guarantee that the act will become law, WSB-TV’s Consumer Correspondent, Clark Howard, unveils ways to avoid unwanted junk fees right now.
Howard spoke with Doug Sleezer, a consumer who’s noticed they’re paying double what they expect for trips and is pushing for more transparency.
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“It’s horrible when you think you’re paying one price, and you turn around and you’re sometimes paying double what you expect to pay,” Sleezer told Howard.
Where the fees hurt the most is when they’re attached to your bank account. Overdraft fees at some banks can be as high as $37 per transaction; larger banks like Citi, Ally, Capital One, and Bank of America have all gotten rid of them.
Howard suggests signing up for low-fund text alerts and ditching your bank’s overdraft protection as a way to avoid junk fees.
When it comes to renting an apartment or home, most of us are looking for a short and sweet process. But not taking your time could cost you more. Recent numbers show that Americans pay more than a billion dollars each year in rental application fees.
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“I ended up paying so many fees that I almost just went to the last place I went because I was like, at this point, I’ve almost paid a whole month’s rent,” consumer Salih Muhammad told Howard.
Howard says there are simple steps you can take to avoid extra rental fees. Before you begin your application, make sure you want to live there; use popular websites like Zillow or Apartments.com; these websites allow you to fill out one application for multiple listings; and always check your credit; it could cost you both your application fee and your chance at the apartment.
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