As a consumer, every dollar you spend is important, regardless of your income or lifestyle. Even though you should have a say in where your money goes, you’ll find that companies may do everything they can to take your hard-earned money. One such area where many consumers are taken advantage of is through junk fees. If you’re unsure what these are or how they can impact you, understanding your legal options is imperative. The following blog explores what you should know about these fees and how an Arroyo Grande consumer protection lawyer can help you navigate these complex matters.
What Are Junk Fees, and How Can They Impact Me?
When you make a purchase, whether it’s for a product, event, or service, you may be excited to find a great deal. However, when you reach the checkout, you may be confused as to why the price has increased considerably. Unfortunately, many companies utilize the practice of including “junk fees” on transactions. These are essentially hidden costs associated with the purchase that consumers don’t find out about until they are actively checking out.
Junk fees include things like hotel resort fees, closing fees for mortgages, student loan service fees, or family seating fees on airlines.
Are There Any Laws in Place to Protect Consumers?
California is one of the few states that has enacted a law to help consumers with junk fees. Under this “Hidden Fees Statute” that was implemented in July 2024, companies are prohibited from failing to advertise prices that do not include junk feed. This means that consumers will know upfront what the total cost will be for a good, product, or service. This benefits consumers, as it helps ensure they can price shop and find the most cost-effective options. This pricing transparency is critical to ensuring that the total price is disclosed.
Unfortunately, you’ll find that some companies, despite having the laws in place, may still try to take advantage of consumers by using complex language to mask the total price, so consumers are still paying more than they intend to. If this is the case, it’s important to understand that you have rights. While junk fees won’t directly impact your credit score, they can have an effect if you are unaware of the price until it’s too late, making it difficult to pay bills.
If you’ve been impacted by a company with hidden junk fees, it’s imperative to understand that you should discuss your legal options with an experienced attorney. At Loker Law, APC, our team understands how complicated these matters can be, which is why it’s in your best interest to reach out and discuss your legal options. When you need help, our firm is here. Contact us today to learn how we can fight for you.
