Biden Administration Proposes Legislation to Crack Down on ‘Junk Fees’ and Protect Consumers from Predatory Practices.

President Joe Biden on Wednesday proposed legislation to Congress to crack down on so-called junk fees, which are hidden costs attached to airline and concert tickets, vacation packages, and television and telephone bills.

The Consumer Financial Protection Bureau (CFPB) proposed capping credit card late fees at $8, which is lower than the up to $41 that some companies charge on top of interest payments. CFPB Director Rohit Chopra said, “We worry that credit card companies are actually hoping that consumers are a day or two late so that they can cash in on fees.”

Biden’s proposal would also ban airlines from charging additional fees for family members to sit alongside their young children, eliminate “exorbitant” fees for canceling television and telephone packages early, and require hotels and other businesses to disclose their fees upfront.

The proposal would also crack down on excessive fees for tickets to concerts and sporting events, which can make up more than 20% of the face value of a ticket. This would make it easier for consumers to compare prices and find the best deals.

The Biden administration’s proposal is part of a larger effort to protect consumers from hidden fees and predatory practices. The proposal is expected to be introduced to Congress in the coming weeks.