President Biden takes aim at fees on travel and credit cards

President Biden clamps down on travel fees.

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A presidential crackdown on travel and credit card fees is music to our ears! President Biden announced Wednesday that his administration is making progress on its “competition agenda,” targeting junk fees and inviting Congress to pass laws tackling hidden fees across multiple sectors, including travel and banking. 

Biden asserted that high fees “drain hundreds of dollars a year from the pockets of hardworking American families, especially folks who are already struggling to make ends meet — but not anymore after today.” 

A proposed law backed by the Consumer Financial Protection Bureau, the Junk Fee Protection Act, would target excess fees in four categories:

  1. Airline fees for families sitting together on flights

  2. Surprise resort and destination fees

  3. Overpriced online concert, sporting event, and entertainment ticket fees

  4. Excessive early termination fees for phone, TV, and internet services

What is happening with travel fees?

The Biden administration is looking to ban fees for family members sitting together while flying. Often, the only way for parents to guarantee they’ll be seated with their young children is for them to select a more expensive airfare type that allows them to pick their seats. Biden believes no parent should have to pay extra to sit next to their child. 

Airlines like Southwest are echoing this move and falling in line with the Department of Transportation’s rule that airlines cannot charge travelers aged 13 and under for choosing a seat next to an accompanying adult.

What about credit card fees? 

Credit card late fees are also being targeted by the White House. They are aiming to reduce the cost of late fees from an average of $31 to $8, saving consumers $9 billion a year in total savings.

President Biden’s administration is calling on Congress to give hard-working Americans a break and help build “an economy that’s competitive and an economy that works for everyone.”

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