Are you sick and tired of being dinged with unfair charges by big business? You’re not alone. CBC Marketplace aired an episode on Canada’s Dumbest Charges. Consumers fed up with being taken advantage of by corporations submitted their ideas for the dumbest charges.
The top five dumbest charges were Ticketmaster fees, airline seat selection fees, paper bill and statement fees, ATM fees, and Bell touch-tone fees. Viewers were given the opportunity to vote on the biggest offender. I voted for Bell touch-tone fees. Charging an extra $2.80 per month for a basic service touch-tone service is highway robbery. Good luck finding a retailer that still sells rotary phones!
This episode really struck a nerve – here is my top 5 picks of Canada’s dumbest charges.
1. Environmental Handling Fee (EHF)
While I’m all for protecting the environment, this next fee is a money grab plain and simple. When I bought my computer monitor on Boxing Day at Future Shop, I thought I was getting a good deal – until I saw the Environmental Handling Fee (EHF) I was being charged. I ended up paying a fee of $39.50 on a $200 computer monitor – that’s a tax of almost 20 per cent, folks!
The EHF is supposed to cover the cost associated with the safe and responsible recycling of used electronics. The problem is the fee doesn’t encourage recycling of used electronics the same way a deposit (which you at least get back) would. To top it all off, I’m responsible for disposing of used electronics to landfills on a designed day during regular business hours. You have to be kidding me!
2. Pet Licensing
Toronto holds the dubious honour of being the only municipality in Canada with a municipal land transfer tax, so it shouldn’t come as any surprise Toronto has another charge I loathe: pet licensing. A lot of people consider the family pet like a member of the family, so it shouldn’t come as any surprise the city is trying to cash in your love of Fido.
For a spayed or neutered pet, you’ll pay $15 for a cat or $25 for a dog. Pet licensing does offer some benefits, but I still consider it nothing more than a cash grab. With the city sending summer interns door-to-door to police the license, I’d be shocked if the city actually makes money!
3. Inactive Credit Card Fee
If there aren’t enough credit card fees, here’s another one that really makes my blood boil! Many credit card issuers will ding you with a $10 charge if you don’t use your credit card for an extended period of time – usually a year. I found this dubious charge on my Scotiabank SCENE Visa card last year. Although I managed to get the fee reversed when I called up and threatened to cancel my credit card, it was still a pain in the neck.
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4. Cellphone Phone Fees
Telecommunication companies are notorious for dinging loyal customers with a slew of fees. You’d think voicemail and caller ID would be considered basic services this day in age – think again! The extra fees on your mobile phone plan can easily add an extra $10 or more to your monthly fee – ouch! With a lack of competition, the big three – Bell, Rogers and Telus – are calling the shots, with customers on the hook for these frivolous charges.
5. Chequing Account Fees
With the rise in popularity of no-fee banking, it amazes me people are still paying monthly service charges to their banks for basic services like a chequing account. The big banks may be raking in record profits, but that doesn’t mean they’ll give us a break on bank fees. Even if you’re only paying $5 per month for a chequing account, that adds up to $60 per year. Over 10 years, you’ll end up shelling out $600, just for the “luxury” of dealing with a bank teller instead of an ATM.
What dumb charges do you loathe the most?
Sean Cooper is the bestselling author of the book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians, available now on Amazon and at Chapters, Indigo and major bookstores, and as an Audiobook on Amazon, Audible and iTunes.
GYM MEMBERSHIPS – Why do I have to pay an initiation fee to join a gym under a contract of at least a year in most cases? Talk about a racket. Best to buy drop in passes at a local rec center.
Dont even get me going about extended protection plans at future shop or best buy, rogers!
I totally agree! I wouldn’t be surprised if half of Future Shop’s profits came from extended warranties alone. Remember, Future Shop and Best Buy wouldn’t be offering them if they didn’t make money.
on this page you will see that RBC does not charge for paper monthly statement. well that is not true. both chequing and saving, they charge for paper statement, whether it is mailed or you actually go to the bank.
http://www.cbc.ca/news/business/canada-s-dumbest-charge-the-5-most-frustrating-fees-1.2798028
“The federal government promised to crack down on some fees last year, but the proposal applies only to telecommunications companies and the government has yet to introduce new legislation. The Royal Bank of Canada is the only major bank that does not charge for monthly paper statements for personal banking customers.”