Can a company charge me hidden fees that were not disclosed upfront?

What the Law Says

Federal law requires businesses to be clear and honest about pricing — especially when it comes to fees. Two key statutes protect consumers from surprise or hidden charges.

The Truth in Lending Act (TILA) ensures that lenders and credit providers give consumers clear, upfront information about the full cost of borrowing — including interest rates, finance charges, and all fees. Its purpose is to 'assure a meaningful disclosure of credit terms' so people can compare offers and avoid unexpected costs.

The Federal Trade Commission Act broadly bans 'unfair or deceptive acts or practices in or affecting commerce.' Charging undisclosed fees — especially after a consumer has agreed to a price — is considered deceptive because it misleads people about the true cost of a product or service.

Both laws empower federal agencies (like the CFPB for TILA and the FTC for Section 45) to enforce these rules, investigate complaints, and impose penalties on violators.

Statutory Text

The Congress finds that economic stabilization may be hampered by the expansion of credit offerings without adequate disclosure of the true cost of credit to the user.

— Truth in Lending Act, 15 U.S.C. § 1601 — Congressional findings and declaration of purpose

Statutory Text

Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful.

— Federal Trade Commission Act, 15 U.S.C. § 45 — Unfair methods of competition unlawful; prevention by Commission

What to Do

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