WASHINGTON (Gray DC) – The Consumer Financial Protection Bureau sampled eight different large retailers and found three started charges fees for cash back over the course of the past few years.
The three companies adopting the policy include Dollar Tree, Dollar General and Kroger-owned Harris Teeter, according to the Biden administration.
The CFPB believes there is a simple reason some retailers now charge cash back fees.
“Some of these establishments are realizing that they can get away with it.”
CFPB Director Rohit Chopra said the issue is especially prevalent in rural communities, where there is often a shortage of places to withdraw cash.
“Many times banks have left after a merger,” Chopra said. “One chain buys up another and closes the branches in rural areas or small towns.”
Chopra said the three companies utilizing the practice bring in $90 million in fees a year, and the Biden administration wants to make sure that existing laws are being followed.
“We really do worry, that there are certain practices in the market that are maybe not fully above board.”
Chopra said these fees add up for those with low income, especially in rural areas, and he’s concerned the practice might just be getting started.
“I’m worried that the Kroger merger with Albertson’s might infect other supermarkets around the country, who will jack up the price on food and on cash back,” Chopra said.
We reached out to Kroger for comment on the fees, but they did not respond.
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