Remarks by President Biden on Protecting American Consumers from Junk Fees
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For instance, individuals who want to switch providers will be able to transfer their account history to a new company, so they don’t have to start over if they are unsatisfied with the service provided by an incumbent firm. If successful, it will also reduce the ability for incumbents to build moats and for middlemen to serve as gatekeepers. It will provide big advantages to those who provide the best products, service quality, and rates. And, by the way, I’m going to be working very hard to make sure that oil companies pass on the reduction in the price of a barrel of oil to the pump.
By allowing consumers to transfer their ledger to a new institution, the rule could make switching institutions easier – you won’t need to maintain a relationship with your bank to maintain your written record. Telecommunications in the U.S. has several noteworthy examples. The Federal Communications Commission’s number portability rules reduced switching costs by allowing customers to move their phone number to a new carrier.
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Then it turns out your balance wasn’t up to date because your bank was slow in processing other charges. And by the time the bank gets around to setting — settling the transaction, you’ve overdrawn your account. You’re charged an overdraft fee that runs around $35 each time. The most common price right now in America is $3.39 a gallon, and it’s going to come down more. Well, this adds up to more than $400 for a lot of families. People would feel secure knowing that both the data holder and the data receiver follow secure practices.
I’ll close by discussing the timeline and next steps to get this done. The CMA and other regulators now have the unenviable task of untangling these arguments between Sony and Microsoft and figuring out exactly how this deal could harm consumers or competition. And we’re working to lower prices and increase competition across the whole economy. Because when companies compete, products get better, prices go down, wages go up.
Bring back the Surface Book
Of course, many actors have sought to obtain, and in some cases successfully grabbed, more control. Threats to openness have come from browsers, operating systems, app stores, infrastructure providers, and others that already have scale or provide a must-have component. Second, we will be looking at a number of ways to stop incumbent institutions from improperly restricting access when consumers seek to control and share their data. With this new competitive landscape in mind, here is where we are headed. First, we expect to propose requiring financial institutions offering deposit accounts, credit cards, digital wallets, prepaid cards, and other transaction accounts to set up secure methods, like APIs, for data sharing. Importantly, a more open market will also make sure consumers won’t have to start from scratch.
Manufacturing computer chips will put tens of thousands of Americans to work. And because of the steps we’ve taken, the United States is in a stronger position today than any other country in the world, economically. I’m not saying they can’t charge it, but they got to let you know they’re going to charge it. They’re going to charge you for that without telling you. Your ticket is going to cost a heck of a lot more. When Secretary Buttigieg called them out on this, about 10 airlines — now 10 airlines rebook for free.
Microsoft and Viasat are using satellites to bring 10 million people online
For Americans to be confident that they have the consumer financial product that is right for them and their specific needs, they should be able to share their data readily, but safely. Epic Games CEO Tim Sweeney welcomed Microsoft’s first hints at an open app store model in 2019 ahead of a giant battle between Epic and Apple a year later that saw Fortnite disappear from iPhones. Epic has been arguing that Apple should allow third-party payment systems in its App Store or even allow rival app stores to function on iPhones and iPads.
When markets aren’t competitive, we feel that we need to buy additional services from a provider we already worked with. But with more seamless integration, this will give us all more choice. Specifically, we expect that the public will gain more bargaining leverage once data holding companies must share authorized consumer data with authorized third parties. And, this will lead to more shopping by consumers both because they have the leverage to walk away and because they will have access to more tailored products and services. The provisions provide for personal financial data rights for Americans, but would only have teeth after the CFPB defined the specifics through rules.
Verge Deals
And today, my administration is making clear it’s also illegal. And because they’re going down, we’re making serious progress in getting prices close to what they were before the pandemic. Rather than rely on black-box models that people can’t make sense of, lending can move back to real-world data about someone’s ability to pay back a loan. This will eliminate bias and reliance on credit scores and other proxies.
For example, for most consumers, changing a bank account is a huge pain. Direct deposits need to be reset, as do scheduled payments linked by ACH or debit card. And consumers need to take these actions, while managing day-to-day liquidity issues.
We'll be in touch with the latest information on how President Biden and his administration are working for the American people, as well as ways you can get involved and help our country build back better. And I appreciate the frustration of the American people. The benefit and the belief that the backbone of America are people who get up every morning and work for a living, put on their shoes, get out of bed, and go to work. And, by the way, the price of gasoline continues to fall. They’re down $1.25 a gallon from the beginning of the summer, and gas prices in the decade before the pandemic were averaging $3.30 — before the pandemic, before I got here. A more open ecosystem that is broadly inclusive of both consumers and businesses holds great promise.
During the pandemic, there was — no one was driving, so the gas prices went down. But even with the historic recovery we’re seeing in the economy of 10 million new jobs and unemployment at 3.5 percent, gas prices are continuing to go down. And we’re remembering — we’re — they’re members of the Competition Council that I created last year to promote competition across the economy and lower costs for families. We are exploring ways to ensure that when consumers share their data for a specific use, that is the only use it will be used for. We know this will be a challenge, given how difficult it is to enforce restrictions, like purpose limitations and data deletion requirements. Starting here will also mean that our jumping-off point is where industry infrastructure for consumer-authorized financial data sharing has already begun to take shape.
Today, many companies are now exploring new underwriting models that return to core principles – assessing ability to repay without attempting to use outside information to model a consumer’s presumed ability to repay. A few words about our approach to market regulation. Regulation of the financial services industry has a bad name, and rightfully so. But even if Call of Duty stays on PlayStation, Sony could still lose out on serious revenue if Microsoft offers the title on Xbox Game Pass. Microsoft previously claimed that Sony is paying for “blocking rights” to keep some games off Xbox Game Pass and now says that’s the case with Call of Duty.
But from day one, my administration has been laser-focused on easing the burden facing working-class families and giving them, as my dad would say again, just a little breathing room. The Department of Transportation is working on rules that would require airlines and travel sites to disclose fees up front, fees like things if you want to sit next to your young child. Or your — check your baggage or change your ticket. You had a positive balance when you paid the bill.
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