85% of Consumers Pay Hidden Fees, Says Consumer Reports

A recent article by Consumer Reports says that a whopping 85 percent of American consumers complained of unexpected, hidden fees in the last two years.

Additionally, according to Consumer Reports, nearly all of them were annoyed by the fees.

“I’d like to find one of the 4 percent of people who doesn’t mind these fees,” Anna Laitin, director of financial policy at Consumer Reports commented. “Maybe an airline exec?”

If you’ve noticed a rise in hidden fees recently, you are not alone. Consumer Reports surveyed more than 3,000 people.

The biggest culprit, according to respondents, were telecommunication providers tacking on additional fees to consumers’ monthly bills.

Also at issue were live entertainment or sporting event tickets, gas and electric bills, personal banking, credit cards, car purchases, hotels, air travel, car rentals, and investment services.

“Today these extra charges are being added to more and more transactions—hidden in the fine print of a contract, popping up when you reach the last page of an online purchase, or combined with taxes or other costs,” notes Consumer Reports. “And those tacked-on fees—some small, some large, but none that you recall being alerted about—can make you feel taken advantage of, especially when they add up, as they often do, to a lot of extra money.”

MarketWatch reports that in 2018 approximately $20 billion was generated from some of the most annoying hidden fees – from reservation changes and baggage fees, bank overdraft fees, and resort fees.

American families are being hit ever harder with unexpected expenses, in addition to rising health care, housing, and education costs. Dealing with hidden fees can add hundreds and even thousands to a family’s expenses.

Consumer Reports theorizes that the increase in hidden fees is a result of increased online shopping for everything from event tickets to hotels to airfare.

Online comparison shopping has made it easier for consumers to locate the lowest price and has made it imperative that companies offer the lowest price possible.

In this vein, companies may be trying to make up the difference with hidden fees that are not reported by online price comparison websites, such as Expedia or Orbitz.

In the end, consumers have to pay the fees, whether they are told up front or after clicking through many pages to find and unexpected charge added to their bill. According to Consumer Reports, consumers are frustrated with the extra time it takes to compare the fees between competitors.

Consumer Reports also notes that consumers cannot likely expect any help from regulators when it comes to hidden fees. Despite some action requiring disclosure of fee increases by credit card companies and hotel operators in 2009 and 2012, no regulatory action is expected on this front any time soon.

On the bright side, there are ways for consumers to successfully fight back against those fees. Consumer Reports reports that, in its survey, 30 percent of respondents say they disputed hidden charges and two-thirds reported that they were successful in getting a refund.

Ways to Fight Hidden Fees

According to the Consumer Reports article, South Carolina residents were able to draw back a more than 200 percent increase in their energy bill by complaining to the state utility commission.

Almost half of the respondents said they had shared information about hidden fees – and the companies that assess them – with friends and family. Another 46 percent say they stopped using the service.

Other consumers report posting complaints about hidden fees on social media, complaining to the company, local government agencies, or the Better Business Bureau. Still others say they signed a petition or wrote to their elected representative.

Another way to hold companies accountable for fees that are not disclosed is to consider legal action. An experienced attorney can help consumers band together an lodge a class action lawsuit over hidden fees that can help hold a company responsible for deceptive behavior.

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