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The push is part of President Joe Biden's government-wide effort
to reduce or eliminate so-called "junk fees" that jack up costs
for consumers. Some agencies have already taken action,
including a proposed rule by the CFPB to cut most credit card
late fees and a Department of Transportation proposal to require
airlines to disclose all fees up front.
Biden has vowed to keep attacking the issue on the federal
level, but the White House said on Wednesday that action by
state governments is also "essential" to rid the U.S. economy of
billions of dollars in "unnecessary, unavoidable, or surprise
charges."
To boost their efforts, the White House will host a virtual
meeting on Wednesday with hundreds of state legislators, some of
whom will share actions they have taken to reduce or eliminate
junk fees by beefing up enforcement, passing new laws or even
changing their contracts with third-party providers.
It will also release a new guide that maps out actions states
can take.
"These junk fees, which are often not disclosed upfront and only
revealed after a consumer has decided to buy something, obscure
true prices and dilute the forces of market competition that are
the bedrock of the U.S economy," the guide said.
CFPB Director Rohit Chopra will speak at the event, which will
be livestreamed at 1 p.m., along with Biden's domestic policy
adviser Susan Rice and his new top economic adviser, Lael
Brainard, who moved over from the Federal Reserve last month.
In a separate letter dated Tuesday, Housing and Urban
Development Secretary Marcia Fudge urged housing providers and
state and local governments to protect renters from "hidden,
duplicative, or unnecessary fees" that hit those with low and
modest incomes the hardest.
(Reporting by Andrea Shalal; Editing by Bradley Perrett)
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