<![CDATA[Consumerist: surcharges]]> http://cache.gawker.com/assets/base/img/thumbs140x140/consumerist.com.png <![CDATA[Consumerist: surcharges]]> http://consumerist.com/tag/surcharges http://consumerist.com/tag/surcharges <![CDATA[ United Adds $800 In Fees To $560 Trip, Loses Customer For Life ]]> We have a feeling this is going to happen with increasing frequency as airlines continue to bleed once-loyal customers for extra revenue: Greg Dean, the cartoonist behind Real Life Comics, has had enough of United gouging him. First it was the second checked bag fee, then the first checked bag fee. Then they doubled the pet-in-cabin fee to $175 each way, which works out to more than the cost of a human round-trip ticket.
And let's not forget the exorbitant booking fee for using miles for one of our tickets. The actual FLIGHT was only $280 round trip per ticket, but with the booking fee TO USE THE MILES TO PURCHASE A TICKET, we wound up paying over $500.

When Dean tried to convert the two tickets into travel vouchers, the airline charged him another $300. And that, readers, is when the airline killed off one of their better customer relationships.

For a trip that requires two roundtrip tickets priced at $280 each, or $560 before taxes, United managed to tack on over $800 in additional fees:

1st checked bag*: $30
2nd checked bag 50
pet-in-cabin fee 350
booking fee (estimated) 150
travel voucher conversion fee 300
Total: $880
figures reflect round-trip totals


 

Dean doesn't have a permalink to his post—it's just up on the "News" section of his front page—so we're reprinting it below for posterity:

There seems to be a trend with me lately - it seems that, without fail, if I am on the phone with United Airlines, it's going to end in me cursing them out.

First, let me point something out. I used to be a devotee to United Airlines. For years, when we had trouble flying on American or Delta or *shudder* Southwest, United was always there as our rock - flights were usually smooth, we got decent service, and life was good. We signed up for frequent flier cards, (Even got a free upgrade to First class from L.A. to Chicago once) and I got a credit card that would give me bonus miles with them. I also had sort of a soft spot for them in my heart, given that my Grandfather worked maintenance for them for most of his life in San Francisco. After his memorial, I wound up taking a bunch of his old United memorabilia home with me, and I'm always going to treasure it, no matter what.

But coincidentally, that particular flight was where the love affair started to go south. See, it was around June, and it was when they started adding on fees for the second checked bag - which we didn't know about until we got to the gate, of course. I understood, to a degree - fuel prices were at an all-time high, and the airlines had to make up for the difference somehow. But I do clearly remember mentioning to the gate agent that "Heh... you KNOW those fees aren't going to go away when fuel prices come down again." How right I was.

Now, of course, fuel has dropped to the lowest price it's been in YEARS, and have they removed the fee? HA! They went one step further... because in early October, we booked a flight home so we could spend Christmas with our families. During that phone call, I discovered that not only had they added a fee for the FIRST checked bag (WHO flies without checking at least ONE bag?!) but they had increased the pet-in-cabin price from $85 per direction (It had previously been $75 the year before) to ONE HUNDRED AND SEVENTY-FIVE DOLLARS per direction. Considering we'd be taking Selphie both ways, that adds up to MORE than the price of a ticket - just for the privelege of putting a dog carrier under the seat in front of us. And let's not forget the exorbitant booking fee for using miles for one of our tickets. The actual FLIGHT was only $280 round trip per ticket, but with the booking fee TO USE THE MILES TO PURCHASE A TICKET, we wound up paying over $500. The pet-in-cabin charge would be paid at the gate, of course. And don't forget the roughly $80 extra we would have to pay just to check our bags. This was the first instance where the phone call ended in extreme profanity.

Now, of course, we're MOVING BACK to California. We no longer have need for a flight from Austin to Sacramento. So, I decided to call United and see if it would be possible to convert the tickets into travel vouchers that we could use at another time. Certainly, said the reservations agent! There's only a fee of $150 per ticket to do so.

THREE HUNDRED DOLLARS?! FOR YOU TO PRESS A FEW BUTTONS AND CHANGE SOME INFORMATION IN A COMPUTER?! Needless to say, that phone call did not end in a civil fashion. I don't care if these people aren't personally responsible for these fees. They're representatives of United, and as such, they deserve to hear what I have to say. Take your fees and shove it.

And so, here and now, I officially renounce United Airlines. Call it whatever you want. A denouncement. A boycott. I don't care - the long and the short of it is this - I will never willingly fly United again, and I would urge anyone to whom customer service is important to boycott them as well. And not just United - I pledge, here and now, to never fly on another Star Alliance airline, either - domestically, this means no flying on US Airways. (Not exactly a huge loss) And I'm going to keep this up until United elects to rescind their fees for the first and second bags, and until the silly fees like $175 for a pet-in-cabin go away. But I'm not silly enough to think that the actions of one man are enough to get something done. That's why I'm calling on you guys.

I'm sure I'm not the only one furious with United Airlines for the treatment I've recieved - I'm sure many, many others have had the same experiences. Tomorrow, I will be writing up an actual, paper letter and sending it off to United, and I encourage you to do the same. If you feel so inclined, their mailing address is as follows:

Customer Relations
WHQPW
United Airlines
PO Box 66100
Chicago, IL 60666

Whether the fees go away or not is immaterial. I'm just pissed that United has $500 of my money that I'm never going to see again, and they're holding it hostage unless I pay an ADDITIONAL $300 to make use of it sometime in the next year. And so, I'm going to throw in my one profanity in this entire post - I say this so that people like my mom who don't really care for profanity can stop reading now.

Fuck you, United Airlines. You just lost a devoted customer.

Real Life Comics (Thanks to Arthur!)
(Photo: Getty Images)

]]>
Fri, 14 Nov 2008 10:13:29 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5086868&view=rss&microfeed=true
<![CDATA[ The price of jet fuel is down, but those ... ]]> The price of jet fuel is down, but those fuel surcharges? Nope. They're up. [USAToday] (Thanks, J!)

]]>
Tue, 28 Oct 2008 13:13:39 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5069934&view=rss&microfeed=true
<![CDATA[ How Would You Like Your Inflation Served? ]]> The Mexican restaurant chain Chachos is now charging a 7.5% inflation surcharge on all meals with cheese. Skyrocketing commodity prices present restaurants with a menu of unappetizing choices: raise prices, levy surcharges, reduce portions? How would you like your inflation served? Vote in our poll, after the jump.

Reader Neal's receipt:

Gawker Media polls require Javascript; if you're viewing this in an RSS reader, click through to view in your Javascript-enabled web browser.

]]>
Sun, 20 Jul 2008 00:00:26 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=5027023&view=rss&microfeed=true
<![CDATA[ Is This $0.10 Credit/Debit Surcharge On Gasoline Allowed? ]]> Reader Brian wants to know how to tell a "surcharge" applied to a credit/debt card transaction vs a convenience charge?

To that end he sends this above example of a sign he saw at a gas station. Is this type of charge allowed?

Brian writes:

Under the VISA rules, how do you tell a "surcharge" applied to a credit/debt card transaction vs a convienence charge?

My wife recently went to get gas at a local gas station that was historically the highest priced gas in the area. Upon pulling up to the tanks, the actual low price was modified up by .10 a gallon for using any non-cash method of payment. Under MC/Visa rules, this looks to be prohibited, but how can you tell?

She didn't know any better and got gas there anyway, but when she got home I knew it was fishy.

Brian, you were right to think this was fishy. Gas stations are supposed to advertise a "cash discount" rather than a fee for using a credit card. This prevents people who pull over because they saw the posted price from getting an unpleasant surprise when they go to pump their gas. You should report this gas station to your credit card company.

An article from the Houston Chronicle shows that a some gas station owners don't understand their credit card contracts:

Bolduc said his contracts with the credit card companies forbid him from offering a discount for cash.

LeLacheur said some stations have contracts that allow them to offer a cash only discount and those discounts are becoming more common.

Other stations simply defy the credit-card company and let the company sue them, he said.

Visa Inc. and MasterCard Worldwide said in corporate statements that retailers, including gas stations, can offer a cash-only discount.

Visa said the cost of accepting credit cards is set by oil companies, not by Visa.

A "convenience" fee only comes in to play when the business normally doesn't accept credit cards. Clearly, this doesn't apply to gas stations.

For a more in depth explanation of the rule, click here.

Card fees can eat up profits at the pump [Houston Chronicle]

]]>
Tue, 15 Jul 2008 10:33:13 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5025123&view=rss&microfeed=true
<![CDATA[ Department Of Transportation Says Airlines Can't Charge Extra Baggage Fees After Ticket Purchase ]]>

The Secretary of Transportation announced earlier this month that airlines shouldn't surprise consumers with extra baggage fees after they've already purchased a ticket:

Passengers should know what to expect, and what to pay, before they buy a ticket or pack their bags, which is why we are calling for carriers and travel agents to disclose baggage fees in their internet and print ads before anyone purchases a ticket.  We also are making it clear that airlines may not impose increased fees or new restrictions for baggage after a passenger has bought a ticket. 

"Blogger's Row and Aviation Announcement" [U.S. Department of Transportation] (Thanks to Brian!)
(Photo: Getty Images)

]]>
Thu, 22 May 2008 11:47:55 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5010464&view=rss&microfeed=true
<![CDATA[ Why Airline Buddy Passes Suck ]]>

This week, travel guy Christopher Elliott talks about the growing worthlessness of buddy passes—the travel vouchers airline employees get for family members, or unhappy customers sometimes get as a peace offering. For examples, "on American Airlines, it’s often less expensive to buy an advance-purchase ticket than to use a buddy pass, once you factor in all taxes and fees." And Continental will add a $100 to $400 surcharge per buddy pass starting this Monday, rendering the "perk" of a buddy pass entirely moot.

But wait. It gets better.

As a result of current market conditions, CO is no longer in a position to absorb additional fuel costs for the weight of a Buddy Pass rider’s second checked bag. Like non-elite revenue passengers, Buddy Pass riders will be assessed a $25 service charge for their second checked bag. When applicable, excess, overweight, and oversized baggage charges will still apply.

This is sending a clear message to Continental’s employees: Our elite frequent fliers are more important than your friends and family. What a shame.

So the next time some airline apologist points out that Gokhan Mutlu, the JetBlue toilet passenger, was flying on a buddy pass, it’s worth noting that these passes hardly pass for a perk anymore.

"You call that a perk? The truth about airline buddy passes" [Elliott.org]

RELATED
"JetBlue Forces Passenger To Sit On Toilet For Flight"
(Photo: Getty Images)

]]>
Fri, 16 May 2008 11:33:54 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5009272&view=rss&microfeed=true
<![CDATA[ Budget's Free Frequent Flyer Miles Promos Will Cost You ]]> con_budgetfreebies.jpg Michael writes, " I was just reserving a budget rental car, and for some reason decided to actually read some of the fine print." Buried in the text was something called an "FTP Surcharge," which basically amounts to a participation fee for any frequent flyer promotion they offer their customers.

FTP SURCHARGE

For rentals in the United States, Puerto Rico, St. Thomas, St. Croix and Canada when the renter chooses to receive frequent flyer miles from the following U.S.
Airline programs Budget will assess a frequent flyer surcharge equivalent to USD $.50 per day up to a maximum of USD $2.00 per rental. The amount assessed is
collected by budget to offset a portion of Budget's annual cost of participation in frequent flyer programs.

Here's another example of it that we found on a randomly Googled Budget frequent flyer page.

What we'd really love to know is whether or not the various airlines have hiked their own "participation fees" for third-party companies like Budget—and now Budget is passing the cost on to renters.

]]>
Mon, 03 Mar 2008 11:10:09 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=363009&view=rss&microfeed=true
<![CDATA[ Airlines continue to hesitantly flirt with ... ]]> midwestmidwest.jpgAirlines continue to hesitantly flirt with hefty fuel surcharges. Delta, Northwest, and Continental imposed a $20-$40 surcharge over the weekend after previous efforts by United, US Airways, and American failed to stick. Sidestep their pricey dance by purchasing airline tickets between Tuesday afternoon and Thursday evening. [Rick Seaney]

]]>
Sun, 27 Jan 2008 15:30:45 EST Carey http://consumerist.com/index.php?op=postcommentfeed&postId=349404&view=rss&microfeed=true
<![CDATA[ Dollar Rent A Car Charges $2.00 "Top Off Fee," Even If You Return With A Full Tank Of Gas ]]> It%20Just%20Makes%20No%20Sense%20People.jpgNo longer content gouging customers who return their rentals with less than a full tank of gas, Dollar Rent A Car is now assessing a $2.00 "top off fee" for cars that have already been topped off.
"I couldn't believe it," said Steven Dentali, who was charged the fee in October after renting a car from Dollar Rent A Car in Manchester, N.H. "I said to them, 'You're telling me I'm penalized no matter what? There's no way around me having to pay something?'"

That's precisely what the rental car agreement said. Here's the exact wording he received in his e-mail confirmation:

"Gasoline Policy: Vehicle must be returned with full tank or local refueling charge applies. If car is returned full a $2.00 top off fee will be applied."

When Dentali started asking questions, he said he was told that the fee was being test-marketed by Dollar at select locations in New England.

Dentali demanded a refund and was told he had to talk with a manager, who in turn told him to call Dollar's corporate offices. He did, and said he was promised a refund. But the $2 never arrived.

Dentali received a personalized response and a refund after complaining to the corporate office:
"I am unable to advise you as to whether or not this is a permanent policy or what the purpose is for it, but in an effort to regain your confidence in Dollar Rent A Car, I have requested a refund check in the amount of $2.16 to be forwarded to you from our accounting office. Please allow up to three weeks for processing and mailing."
A corporate spokesman claims the fee is the creation of a local franchise and is not a standard charge for corporate-owned locations.

At least it's cheaper than United's $50 fuel surcharge. Has anyone else seen and fought the top off fee? Send your experiences to tips at consumerist dot com.

Sneaky fee alert: rental car 'top off' [The Red Tape Chronicles]
(Photo: fabbio)

]]>
Sun, 13 Jan 2008 17:05:39 EST Carey http://consumerist.com/index.php?op=postcommentfeed&postId=344302&view=rss&microfeed=true
<![CDATA[ If you're a customer of a small bank or ... ]]> con_tinyatmhandgraphic.jpg If you're a customer of a small bank or credit union with limited access to fee-free ATMs, consider asking your financial institution to look into joining pre-existing, surcharge-free ATM networks like MoneyPass or Allpoint.

]]>
Thu, 04 Oct 2007 12:22:49 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=307113&view=rss&microfeed=true
<![CDATA[ Virgin Atlantic, British Airways Admit To Collusion, Prepare To Issue Vouchers ]]> Virgin Atlantic and British Airways admitted last week to the Department of Justice that they colluded to levy excess fuel surcharges ranging from $10 to $100. Despite the admission, both airlines claim that passengers weren't really overcharged.

From USA Today:

Officials at both British carriers say passengers weren't overcharged despite the collusion. Virgin Atlantic spokesman Paul Charles said that "no passengers have paid more than the total ticket price would have been anyway." That's because, he says, the discussions between the rivals had no effect on the surcharges that were set.
Michael Hausfeld, lead attorney in a federal class action suit against the airlines, came up with an analogy to show the ridiculousness of the airlines' logic:
"It's like a thief beating you up, taking your wallet, and telling you, 'But I left your money.' Why would they do that? Of course they charged passengers more."
The Department of Justice agreed, albeit without resorting to clever analogies:
"Does it make sense that a company would risk the type of fines that are being imposed, that executives would face lengthy jail sentences ... to continue to participate day after day, month after month, year after year, in a conspiracy that had no effect?"
Bilked passengers should not expect a substantial refund. Hausfeld's class action will likely extract $15 to $25 vouchers good for future travel with the overcharging airlines.

British Airways, Virgin Atlantic fliers could be reimbursed [USA Today]
(AP Photo/Matt Dunham)

]]>
Mon, 06 Aug 2007 11:01:10 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=286335&view=rss&microfeed=true
<![CDATA[ Bank of America To Raise ATM Surcharge to $3 ]]> bankofamerica.jpgUS PIRG says they've obtained legitimate documentation that says Bank of America will be raising their ATM surcharges for non-customers to $3 at most locations. The change will take place on July 31st.

From US PIRG:

Surcharges are the double-dipping fees imposed on non-customers and will be raised at BofA ATMs attached to their branches and in in-store locations (but not those in malls or airports). In Illinois (but not Chicago, where fees will not increase), New York, Nevada, New Mexico, and Massachusetts, they'll wait a month until August 31st. Chicago must be a new or important market for them, I guess.
Yes, Chicago is both a new and important market for BoA as they take over LaSalle Bank and become Chicago's largest bank.

US PIRG has some quotes from the paperwork they obtained:

In their talking points to "market presidents," BofA flacks advise:

Bank of America may be an industry leader in raising the fee to $3 and most likely will draw attention from the press, state legislators, consumer advocates and Congress given the size of our network.

Duh.

And in a set of FAQs, check out this corporate double-speak answer:

Does it cost any more for you to process transactions for non-customers? The bank continues to make significant investments in its ATM network and we continue to grow the network for the convenience of our customers.

If you're not a customer of Bank of America, feel free to avoid using their ATMs.

Bank of America to increase ATM surcharge to $3 [US PIRG]
(Photo:epicharmus)

]]>
Fri, 27 Jul 2007 11:44:10 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=283250&view=rss&microfeed=true