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Consumer Daily Reports

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Should you take advantage of the National School Lunch Program?

By Gary Guthrie of ConsumerAffairs
July 29, 2024

Photo

Junk fees on airline tickets, junk fees on internet bills, junk fees on school lunches? That seems to be the case based on a new Consumer Financial Protection Bureau (CFPB) report on payment processing companies that assist school districts in processing childrens school lunch payments.

In its review of 300 of the U.S. largest school districts, the CFPB came away with two issues these private companies have created for parents and students.One, they process payments made by parents who may be low-income and have limited, or zeropayment alternatives -- meaning that because those customers are basically captive, those companies can pile on the fees.

The second issue is that parents and caregivers have no control over fee rates and really nowhere else to go and shop for a better deal.

In spite of the fact that more than 20 companies offer these services to school districts nationwide, the vast majority of enrolled students are served by just three market leaders. Their typicsl M.O. is to charge fees to add money to a students school lunch account, which may seem innocent enough, but collectively can cost families and earn those companies upwards of $100 million each year.

Among the companies it studied, the CFPB observed that the payment processors charge transaction fees of $2.37, or 4.4%, of the total transaction, on average, each time money is added into a payment account.

Who are those companies? Heres the CFPBs list:

Consumer News: Junk fees hit a new low, the school lunch room

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. Todays report will help school districts avoid contracts with financial firms that harvest excessive fees from families who purchase school lunch.

USDA steps in to make things right

Agriculture Secretary Tom Vilsack agrees with the CFPB that adding fees on a kid or parent on something as basic as nutrition is a bit much. In turn, he has instructed the Agriculture Department (USDA) to review its policies and work with schools, state oversight agencies, and the payment processors to guarantee that all families have a clear and readily-available fee-free payment method.

School food authorities participating in the National School Lunch Program will also be required to provide fee-free avenues to pay for school lunch. But parents need to know that these fee-free options are not always well advertised or accessible, so theyll have to ask.



Photo Credit: Consumer Affairs News Department Images


Posted: 2024-07-29 10:58:54

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Upgrade Your Garden Gate With This Simple DIY Fix #diy #tips #greathomeideas
Play Video: Upgrade Your Garden Gate With This Simple DIY Fix #diy #tips #greathomeideas


Upgrade Your Garden Gate With This Simple DIY Fix #diy #tips #greathomeideas -- Welcome to Great Home Ideas, your destination for DIY fixes, home makeovers and amazing ways to bring your garden to life. Each week, we’ll be sharing fascinating stories, fresh projects and expert advice to help you transform your space and make your dream home a reality. Whether you’re up for a full on reno or just like to watch other people bring their visions to life, subscribe for inspiration, tips, and easy-to-follow DIY projects. ▶ Subscribe: https://bit.ly/3hxN7d5

Published: 7th Mar 2025 07:00:01   By: Great Home Ideas

DIY Video: DIY Dog Bed! Transform Old Furniture | Great Home Ideas

DIY Dog Bed! Transform Old Furniture | Great Home Ideas
Play Video: DIY Dog Bed! Transform Old Furniture | Great Home Ideas


Pamper your pet with this DIY luxury four-poster bed. Tara shows how you can easily upcycle old furniture and fabric to create a cozy spot for your furry pooch or cat. 00:00 DIY Pet Bed 05:56 Jewellery Bowls 08:29 Flower Frog -- Welcome to Great Home Ideas, your destination for DIY fixes, home makeovers and amazing ways to bring your garden to life. Each week, we’ll be sharing fascinating stories, fresh projects and expert advice to help you transform your space and make your dream home a reality. Whether you’re up for a full on reno or just like to watch other people bring their visions to life, subscribe for inspiration, tips, and easy-to-follow DIY projects. ▶ Subscribe: https://bit.ly/3hxN7d5

Published: 5th Mar 2025 07:00:12   By: Great Home Ideas

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