New York CNN —The fees parents pay to make online deposits into their children’s school lunch accounts are under scrutiny at the Consumer Financial Protection Bureau, which found that some parents may pay up to 60 cents in fees for every dollar they deposit.
“Transaction fees and other types of junk fees can take an economic toll on American families just trying to pay for basic school expenses, including school lunch for kids,” said CFPB director Rohit Chopra in a statement.
Based on data the agency collected, it determined such families pay roughly $72 a year for 180 days of lunches plus $42 in fees when they make two deposits a month into their child’s account.
The agency estimates that payment processors collect between $28 million and $92 million in fees from families paying full fare for lunch, and between $1.9 million and $10.2 million from those paying reduced prices.
On top of transaction fees, parents may be charged a small program fee when they open an account or a convenience fee to transfer funds between their children’s accounts.
Persons:
”, Rohit Chopra, CFPB
Organizations:
New, New York CNN, Consumer Financial Protection Bureau
Locations:
New York