Biden Ahead of Midterm Elections: "Will Eliminate Unfair and Hidden Fees"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] "Every year, thousands to tens of thousands of dollars are paid in 'junk fees.' These only benefit large corporations and do not help consumers."

Ahead of the midterm elections this November, U.S. President Joe Biden, who is struggling with inflation, has declared that he will eliminate various hidden fees passed on to consumers. By removing excessive credit card late fees and additional reservation fees charged at the last minute of payment, he aims to reduce the financial burden on the public.

According to the White House, President Biden announced this after signing an executive order on the 26th (local time) to protect American consumers from so-called junk fees during a public address. President Biden emphasized, "Unfair and hidden junk fees are taking money out of the pockets of American households," adding, "This is especially shocking for Americans struggling with living expenses, such as low-income families and people of color."

The representative junk fees he pointed out include overdraft fees that banks impose without notice when withdrawing more than the account balance. Excessive credit card late fees, separate service charges added at the end of ticket sales for concerts or sports events, hidden hotel reservation fees, and hefty cancellation fees that prevent switching to better cable and internet plans were also mentioned. He also pointed out the difficulty of free rebooking when flights are canceled or delayed.

President Biden said these junk fees are putting pressure on household budgets and called bank overdraft fees 'illegal.' He stressed, "There are hundreds of billions of dollars in other junk fees across the economy," and "I have directed the administration to reduce or eliminate them." The federal government has begun investigating the various fee structures mentioned that day.

Additionally, President Biden highlighted the recent drop in gasoline prices and emphasized that oil companies will be required to reflect the price decrease in product prices.