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Hidden Fees Overview
Hidden fees are any unexpected fees that consumers get hit with when purchasing goods or services. The reason these are referred to as hidden is because the consumer might not have been expecting the charge and, in reviewing their financial data or statements, finds out they’ve incurred additional charges.
Hidden fees might also be referred to as undisclosed fees and the very nature of this term means that a consumer might only realize the effect these fees have had on their accounts after the fact. Many times, these charges are small and amount to less than $10. If multiple companies have charged someone hidden fees, however, that amount can add up.
Being hit with hidden fees can be an unfortunate and an unwelcome experience for a consumer. In certain situations, however, it can also entitle the consumer to take legal action. While plenty of companies do charge fees, what matters in a legal case is whether or not the disclosure was made in accordance with applicable laws.
Undisclosed Fees
Hidden charges and undisclosed fees can appear in a variety of different circumstances, including:
- Undisclosed fees from financial professionals and brokers
- Inactivity fees charged by a credit card company
- Charges to attend an entertainment or sports event
- Fees deducted by hotels and other retail operations
- Credit card fees listed in the monthly statement
- Charges tacked on to a utility bill
- Hidden fees charged by other consumer companies
State and Federal Hidden Fee Laws
Undisclosed fees are a growing concern for a number of different consumer rights advocates across the country. This is because hidden fees can lead to consumers being charged millions of dollars every year.
For this reason, current laws and those in development at the state and federal level are designed to protect against abusive and deceptive practices for situations in which a consumer receives a bill that is higher than expected. This occurs when the service provider does not disclose these fees upfront.
Certain states have strict laws that protect consumers from hidden fees. For example, California provides a false advertising law and unfair competition law that help to address many different types of deceptive business practices.
Hidden fees that are assessed in mortgage services, investment services, car purchases, hotels, apartment buildings, condo associations, and even city government, might fall subject to consumer protection laws and enable an effected consumer to bring a lawsuit.
Hidden Fee Litigation
Companies are increasingly ending up in the spotlight with consumer requests for these fees to be disclosed upfront. Many consumers who find themselves subject to hidden fees might think the amount of their individual fee is not substantial enough to bring a lawsuit. Many of these fees are known as hidden because they are relatively on a small scale somewhere between $10 and $20. An individual consumer might choose not to pursue litigation because of the small amount of money despite their frustration with not being told about these fees upfront.
But a hidden fees class action lawsuit can bring more relief to more consumers. Consumers who band together and bring a class action lawsuit might be eligible to hold these companies accountable under state consumer protection laws. These class action lawsuits can help compensate thousands of consumers as well as give companies a reason to keep their practices in line with applicable laws.
10 thoughts onWhat Are Hidden Fees?
I read about junk fees recently. So when I bought food at an airport restaurant- it wasn’t enough to charge me $10 for a $2 kids hot dog. They added a $2.50 junk fee on top of it all. I ordered five kids meals (grandkids) and it just didn’t add up. I feel violated. $2.50 is nothing. Adding on deceptive kinks fees is Un- American at any amount.
Lately Miami area restaurants are charging a HIDDEN FEE after they process the credit card and the voucher comes back for signature and tip. I have seen a flat rate for each credit card processed when we share the lunch bill, or a % of the total. We find out at time of payment, after the meal is finished.
When consulted Mastercard, Florida Consumer Protection and State Attorney General, they say there is no regulation for these fees and merchant can charge whatever they want. We can go for lunch elsewhere if not satisfied at the restaurant.
I feel these fees are part of the cost of doing business and should be like electricity, water, payroll, etc. included in the price markup of the items they sell.
What”s your opinion?
Are there any class action lawyers that someone could talk to if they feel like this is a big problem in a specific case?
I went to the title company to close on a real estate deal in New Mexico. They handed me a form to sign which stated that if there are any fees which they forgot to include during the close, or if they got their numbers wrong, or if anything is incorrect and not caught during the close, then I agree that they can charge me for it and I will pay for it. I objected to signing, they said that everyone signs it, their underwriter wrote it up, it went through underwriter’s attorneys, and that it is part of their closing package and everyone has used it for over 12 years. I said I did not want to sign, and they said they would not close the deal unless I signed. I have never heard of such nonsense. If this isn’t a recipe for hidden fees, I don’t know what is.
Spectrum offers basic internet service for $49.99, but sent my first bill for $170.00. After Arguing with 2 customer service reps. admittedly said they had no idea about the commercial add. The bill was reduced to $70. And I was told I had to pay for a bandwidth fee and a fee 24.99 which they couldn’t even tell what it was for.
I was at a restaurant that advertised all the food items, but failed to list pricing on drinks. I feel ripped off, because in the surrounding area, no one charged as much as I was charged for 1-8oz drink. I would not have ordered it had I know what they were going to charge me. I was thinking it would have been average pricing, but it was like 3 times that amount.
Shipt added $2.99 fee to my order cost stating due to prop 22. I requested through online chat the charge be removed. My request was denied. Order placed August 25th, 2022 I have a paid Shipt membership fee that is represented to be free delivery.
hidden fees; charged for items not received; uber eats
emailed them several times – form letter response
The mortgage Company I was with suddenly sold my mortgage to another Company the min I started to ask about the 35 dollar fee for paying with a credit card I asked who was charging this fee they claimed the credit card was I asked the credit card company said flat out they were liars can I start a class action over this I am pretty much sure that’s why they sold my mortgage
First off, I am NOT an attorney, but I have worked in Real Estate. It’s not unusual for mortgage companies to sell off to other companies, particularly right after a settlement, as they can carry only so many. It is my understanding that packages transfer “as is”. The new company should have sent you their information regarding things they charge for…read it through thoroughly. There are many new attorneys who are willing to do a free 30-minute consultation…just make sure it’s in the settlement field. Also, keep copies of all charges, and make a written note of every conversation, including name and date, with everyone you speak to and what they said…all documentation will make for a stronger case. Good luck, and let me know how it goes for you : )