Hidden Fees Survey: 85% of Americans Hit With Hidden Fees

Consumers who have been charged predatory hidden fees by a variety of companies and retailers may be entitled to compensation for these charges, especially if they are able to prove that the fees are deceptive or fraudulent.

According to a recent Consumer Reports hidden fees survey, 85 percent of Americans have been charged hidden fees in the past two years.

As part of Consumer Reports’ campaign entitled “What the Fee?!”, nearly 3,500 Americans wrote to the website to report unexpected fees and charges associated with a variety of purchases.

The complaints in the hidden fees survey included stories from a man in Texas who was assessed an extra $15 by his car rental company for going through highway tolls. These charges added up to an extra $90. Another customer from North Carolina reported almost $25 in fees charged on a concert ticket.

Common Types of Hidden Fees

Most hidden fees are not discovered until the very end of the purchasing process. At this point, according to the Harvard Business Review, many consumers simply pay the extra fee, rather than attempting to purchase the item from another retailer with lower fees. These fees are sometimes referred to as “bait and switch” fees, as the retailer advertises a lower fee than the product or service actually costs once the hidden fees are applied. Bait and switch, or hidden fees may be applied to many types of purchases, including:

• Payments to utility companies, including gas and electric
• Car purchases
• Credit card payments
• Concert and sporting event tickets
• Mandatory fees applied to bills at restaurants
• Airline tickets and services
• Investment services
• Mortgage payments
• Insurance services, including auto, health, and home

According to the Consumer Reports hidden fees survey, consumers pay massive amounts of money every year in hidden charges and fees. In 2018, notes a report by the Philadelphia Inquirer, the hotel industry made nearly $3 billion in fees and surcharges. Airlines made even more in that same year, earning over $7 billion in revenue from extra fees, including reservation change fees and baggage fees.

What Can Consumers Do?

While most consumers who are hit with hidden fees simply pay the fees rather than fighting with the company, customers who do push back on hidden fees may be rewarded for their efforts. While only 35 percent of the respondents to the Consumer Reports hidden fees survey said they had attempted to argue with a company over removing an unexpected or hidden fee, 64 percent of the people who fought back against these charges reported that they were successful.

Hidden fees may be in violation of federal and state consumer protection laws. Consumers who believe that they were charged deceptive or fraudulent fees may be able to recover damages if they can prove that these charges were assessed. Filing a class action lawsuit may be a way to hold companies accountable for fraudulent or deceptive fee practices and prompt change. Victims of fraudulent and hidden fees may be able to pursue damages and reimbursement for these charges.

Join a Free Hidden Fee Lawsuit Investigation

If you believe that you were charged unexpected hidden fees by a merchant or service provider, you may qualify to join this hidden charge class action lawsuit investigation.

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This article is not legal advice. It is presented
for informational purposes only.