Yahoo Finance 10 Industries That Are Double Billing You — How You Can Avoid Paying So Much
When was the last time you took a good look at your bill to make sure that what you were charged for is the correct amount? You might want to start double-checking the fine print and doing the math yourself since several industries are getting called out for double billing customers.
You might be able to negotiate to get the charges reversed or a partial refund, but at the end of the day, that’s time and money down the drain.
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How can you avoid paying so much and not get double billed? It all starts with knowing which industries are notorious for charging customers twice. Here are the ones to be on high alert for so you do not get billed twice over.
Telecommunications
Telecom providers are notorious for hidden fees and erroneous charges, according to David L. Blain, CFA and CEO at BlueSky Wealth Advisors.
“As someone who has audited telecom bills for over 20 years, I’ve found erroneous charges at nearly every company,” said Dylan Cleppe of OneStop Northwest LLC. “Carefully scrutinize your bill each month and question any charge that seems off. Negotiate the best rate upfront, then lock in that rate with a multi-year contract.”
“Carefully review your bills each month for any unwarranted additions like device insurance or data overage fees,” echoed Blain. “Don’t be afraid to call and dispute incorrect charges.”
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Insurance
Ben Klesinger, co-founder and CEO of Reliant Insurance Group and Helping Hand Financial, said, “Insurance companies frequently tack on extra fees when policies renew.
“Always ask for an itemized renewal notice and question any charge not clearly tied to your coverage limits or payouts last year. Don’t be afraid to shop [around with] other companies.”
Healthcare
“Healthcare providers may charge separately for facility fees, physician fees and anesthesia — often from different billing groups,” Blain said.
“Healthcare is an industry designed to bill as much as insurers will cover,” Cleppe agreed. “Question costs that seem disproportionate to the services rendered. Check that each provider who treated you is in your insurance network. Out-of-network doctors and facilities will balance the difference [of the bill for you] between their charge and your insurer’s allowed amount.”
Blain advised customers to request “an itemized bill to ensure you’re only paying for services actually received. Ask about insurance network participation for all providers before receiving treatment.”
Car Repair
It might seem cliche, but there is some truth to double-checking you are not overcharged at the auto shop the next time you bring your car in for a tuneup.
“Automotive repair shops frequently suggest unnecessary services or overcharge for parts. Get a second opinion on major repairs,” Blain explained. “Ask for the old parts to be returned to ensure the work was actually done. Check repair estimates against industry standards to determine fair pricing.”
Travel and Tourism
You might expect to pay a lot when you are on vacation, but the price tag often is more than originally advertised.
Andrew Priobrazhenskiy, a savings expert at DiscountReactor, mentioned how “double charging in the tourism sector, particularly in the case of airlines and hotels, wherein hidden charges or duplicated fees for services such as Wi-Fi and extra suitcases go unnoticed.”
Most hotels have added “resort fees” to the base rate — a practice that became ubiquitous in the 2000s. These fees tack on up to $50 per night at many hotels. It is always worth trying to get some or all of the fees waived, depending on what the hotel says it is actually including for that extra charge. If there is no added value, you typically can argue to have the fees removed entirely.
Airlines are now notorious for a la carte pricing, adding luggage fees and seat selection fees. The seat fees are actually triple billed, with passengers having to pay the base fare plus a selection fee plus a fee for picking a specific seat. The added fees can add at least $300 to the price of the flight.
Restaurants
Eating out at a lot of sit-down restaurants? Be careful that you are not getting service fees that are tacked on to your final bill for things you did not order.
“Restaurants can be tricky with extra charges like split-plate fees or corkage fees,” Klesinger said. “Ask about any additional charges before ordering and check your bill closely. Some places charge a premium just for splitting an entree between two people.”
Also common in some cities is a service charge that the restaurant does not consider a tip. Diners must determine whether they want to consider that service charge a tip and thus deduct it from the gratuity. They also should be wary of basing the tip percentage on the total that includes the service charge.
Financial Advisement
Blain said, “Financial advisors are incentivized to sell expensive investment products that generate high commissions but may not benefit the client.”
Investment accounts and credit cards frequently have small print fees that quickly add up, Cleppe said.
“Demand clear disclosure of any fees before you sign up and opt out of any you don’t need,” he explained. “For investment accounts, choose a fiduciary advisor who charges flat or hourly fees over one earning commissions. Their incentives are better aligned with your financial interests.”
Blain added, “Fee-only advisors who charge by the hour or as a percentage of assets under management can help ensure recommendations are unbiased and in your best interest.”
Subscription Services
Streaming services are moving to a la carte fees as well. Amazon Prime, for example, now charges another fee for members who want to watch movies without commercials.
Priobrazhenskiy warned subscribers to be careful about free trials and other potential budget busters.
“This may happen during instances when consumers accidentally subscribe to multiple packages or, at times, simply forget to cancel ordered free trials,” he said.
Keep reminders and regularly check your bank statement for unexpected subscriptions, Priobrazhenskiy recommended. “Cancel such redundant or idle services for considerable savings in the long run.”
Banks
Even in a place where money is supposed to be accounted for down to the last cent, you still could be getting overcharged by your bank.
“Banks have become adept at layering on junk fees to boost profits,” Cleppe described. “Peruse your statement for charges like overdraft fees, ATM fees from out-of-network machines, paper statement fees or inactivity fees.
“Consider banking institutions with a reputation for fewer nuisance charges or go online-only. Some credit unions offer fee-free or low-cost options as well. Constant vigilance is the only way to avoid excess charges across industries. But with time and practice, you’ll get better at spotting potential fee traps before they snare you.”
Utilities
Utility companies make mistakes that result in double billing, Priobrazhenskiy said, citing an example of when a utility service provider charges customers “based on estimated usage instead of actual usage.”
“This may result in overpayment when such estimates are way above actual consumption,” Priobrazhenskiy explained. “Therefore, consumers should acknowledge the need to give regular meter readings when possible and analyze their bills for accuracy. This includes contacting their utility companies with respect to inaccuracies so as to avoid any unnecessary overcharges.”
Priobrazhenskiy recommended that the average consumer “periodically review their bills for unknown charges and occasionally may contact their provider to confirm in a timely manner on the services being used to prevent overpayment.”
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