Legal Definitions - nuisance fees

Definition: Nuisance fees are charges imposed by banks or credit card companies for using or not using their services in specific ways. These fees can include inactivity fees, fees for not carrying a balance on a credit card, or fees for using an ATM or teller. The term can also refer to any fee that a company charges that is disproportionate to the actual cost of the service provided or the activity being penalized. For example, a $100 fee to change an airline seat or a $500 fee to have real estate documents notarized when purchasing a house.

Examples:

• A bank charges a $5 fee for using an ATM that is not part of their network.
• A credit card company charges a $10 fee for not using the card for a certain period of time.
• An airline charges a $50 fee for checking a bag.

These examples illustrate how nuisance fees can be charged for specific actions or inactions. The fees may seem small, but they can add up over time and become a burden for consumers. Companies may also charge fees that are much higher than the actual cost of the service provided, which can be frustrating for consumers.