What to Do If a Business Charges Hidden Fees
Quick Answer
Hidden fees, charges not clearly disclosed before you agreed to pay, may violate FTC rules and state consumer protection laws. In 2024, the FTC issued rules requiring businesses to disclose all mandatory fees upfront. Dispute unexpected charges with your credit card company, report to the FTC and CFPB, and file with your state attorney general for local businesses.
Junk fees and hidden charges have become widespread across hotels, airlines, ticket platforms, rental cars, and financial products. Federal and state regulators have increasingly targeted this practice, but knowing your rights and where to complain is still necessary when it happens to you.
What Makes a Fee "Hidden"
A fee is hidden or deceptive when:
- It was not disclosed before you completed the transaction
- It was buried in fine print you could not reasonably review before checkout
- It appeared only at the final stage of checkout after you invested significant time
- It was misrepresented as optional when it was mandatory
- The total advertised price was substantially different from the amount charged
The FTC's 2024 Rule on Junk Fees
The FTC's Trade Regulation Rule on Unfair or Deceptive Fees (finalised in 2024) requires businesses to:
- Clearly disclose the total price including all mandatory fees upfront, before you begin the checkout process
- Not misrepresent fees as optional when they are required
- Not charge fees not disclosed at the time of purchase
This rule covers hotels, short-term rentals, ticketing, and similar services. Violations can result in civil penalties.
The CFPB's Role for Financial Fees
The CFPB specifically targets junk fees from financial institutions:
- Overdraft fees charged without clear prior consent
- NSF (non-sufficient funds) fees
- Credit card late fees above regulatory limits
- Mortgage closing fees not disclosed in the Loan Estimate
- Surprise subscription or service fees from financial products
The CFPB has taken enforcement action against several large banks for these practices.
What to Do When You Are Charged an Unexpected Fee
Step 1: Contact the business directly and request removal of the fee, citing that it was not disclosed at the time of the transaction. Get confirmation in writing.
Step 2: If the business refuses and you paid by credit card, dispute the specific charge with your card issuer as an unauthorised or misrepresented charge under the Fair Credit Billing Act.
Step 3: File a complaint:
- FTC: ReportFraud.ftc.gov, 1-877-382-4357
- CFPB (for financial fees): consumerfinance.gov/complaint, 1-855-411-2372
- Your state attorney general: usa.gov/state-consumer