You know the feeling. You get to the final phase of a transaction — looking at you, Grubhub — and suddenly, the final price looks a lot higher than expected.
National legislation recently went into effect reining in so-called “junk fees” for hotels and ticket sellers. But in Illinois, the battle is just getting started, specifically when it comes to ride-shares and apartment rentals.
Landlord Junk Fees
In Chicago, strict rules over how landlords handle security deposits have led property owners to favor (unregulated) move-in fees. The practice has increased over the past 10 years, and renters feel it’s out of hand.
In addition to move-in fees, landlords can also charge application fees, cleaning fees, background check fees, late fees … In April, a $750 key fee made news.
A bill restricting these types of charges and banning move-in and application fees altogether was floated before the Illinois House in mid-May. However, the legislation got watered down. Landlords could still charge move-in and move-out fees but would need to provide an itemized list of services they're paying for.
The measure is expected to go before the Illinois Senate before the General Assembly adjourns May 31. If amended and passed there, the bill would still need to return to the Illinois House for concurrence.
Meanwhile, other junk fee legislation is gaining traction.
The ride-share pickup point at Terminal 2 at O'Hare International Airport. (John J. Kim/Chicago Tribune/Tribune News Service via Getty Images)
Ride-Share and Other Junk Fees
The Junk Fee Ban Act passed easily through the Illinois Senate and through a key House committee this month. If finalized, it would require gig service companies, like food delivery, ride-share, and lodging companies, to show all fees before customers reach checkout.
First filed in January, the bill had previously stalled in the Senate. Then news broke that Uber was charging a $1.50 surcharge for downtown rides outside of surcharge hours. Uber promised to refund affected riders, but the incorrect charges reignited the local conversation on junk fees.
On May 21, Ald. Debra Silverstein (50th) pledged to hold a hearing over Uber’s recent error. The same day, ride-share drivers rallied for workplace protections outside of City Council.
Will the General Assembly capitalize on this momentum before the May 31 deadline? Time will tell — soon.
