As the old song said, "Strange Things Are Happening."
Thanks largely to the computer, it is easier than ever to shop for price. You name it, you can find out who is selling it cheaply. That has forced prices down to rock bottom on everything from cameras to hotel rooms. Sounds like a good thing to me.
But there is another side of the story.
Look at banks for example. Back in the dark ages (around 1970, I believe), the Truth In Lending Act required lenders to disclose to the borrower the Annual Percentage Rate (APR) being charged. APR was just the “real†interest rate. Before that, it was absolutely criminal the way interest rates were quoted and charged. Most of us, however, grew up with APR and have learned to see it spelled out in the loan application. That was a good thing. You could shop among local lenders for the lowest APR and that led to lower rates.
Then—within the last few years—banks became adept at adding fees along the way. You would be quoted a certain APR, then the fees would drive the total higher. And have you paid any loan even one day late recently? You wouldn’t believe the fees and even the raising of the interest rate for the balance of the loan.
Hotels did the same thing. They’d quote a rate of, say, $89 per night (I stay in cheap hotels) without mentioning fees like “gas increase fee†charged at checkout (I am proud to say I never paid one of those—I just said I called you, you quoted your price and that’s all you’re getting. They always knocked it off the bill.).
Recently, American Airlines announced a new fee of $15 for one checked bag. That allows them to quote low fares then collect extra money.
Here’s the rub. We tend to shop for the lowest price. These fees add a little sleaze factor to the bottom line. Further, they make it hard for even good suppliers to compete without the sleaze factor.
What we can do? Always, no matter what you are buying, ask for the total price, including any and all fees. Then ask questions about fines.
It won’t work perfectly, but it will help.
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