Legal Definitions - nuisance fees

Nuisance fees refer to charges, often small individually but potentially accumulating, or fees that appear disproportionately high compared to the actual cost of the service provided or the administrative effort involved. These charges are typically imposed by companies for specific actions, inactions, or for services that consumers might consider basic or already covered.

Here are some examples illustrating nuisance fees:

• Bank Account Maintenance Fee: Imagine a bank charges a $15 monthly "account maintenance fee" on a checking account if the average daily balance drops below $100, even if the account holder makes regular deposits and withdrawals. This illustrates a nuisance fee because the charge is imposed for failing to meet a specific condition (maintaining a minimum balance) that may not reflect significant additional cost to the bank, and it can feel like an unnecessary penalty for an otherwise active account.

• Online Ticketing Service Charge: When purchasing a $50 concert ticket online, a ticketing website adds a $12 "service fee" for processing the digital transaction and delivering the e-ticket. This is a nuisance fee because the $12 charge seems disproportionately high for the minimal actual cost of digitally processing a transaction and sending an email, especially when compared to the ticket's face value. It's a charge for a service that is often unavoidable for online purchases.

• Car Rental Refueling Penalty: A customer returns a rental car with a partially empty fuel tank, and the rental company charges a flat $60 "refueling service fee," in addition to the cost of the fuel itself, even if only a few gallons are needed to fill the tank. This exemplifies a nuisance fee because the flat $60 charge for the "service" of refueling is often significantly higher than the actual labor or administrative cost involved in filling a tank, making it feel like an excessive penalty for a minor oversight.