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A Dollar General store in Germantown, New York, on Nov. 30, 2023. Angus Mordant/Bloomberg via Getty Images Three of the nation’s largest retailers — Dollar General, Dollar Tree and Kroger — charge fees to customers who ask for “cash back” at check-out, amounting to more than $90 million a year, according to the Consumer Financial Protection Bureau. Many retailers offer a cash-back option to consumers who pay for purchases with a debit or pre-paid card. But levying a fee for the service may be “exploiting” certain customers, especially those who live in so-called banking deserts without easy access to a bank branch or free cash withdrawals, according to a CFPB analysis issued Tuesday. That dynamic tends to disproportionately impact rural communities, lower earners and people of color, CFPB said. Not all retailers charge cash-back fees, which can range from $0.50 to upwards of $3 per transaction, according to the agency, which has cracked down on financial institutions in recent years for charging so-called “junk fees.” More from Personal Finance:The IRS method of ‘last resort’ to collect overdue taxesHow investors can prepare for lower interest ratesWhy remote work has staying power Five of the eight companies that the CFPB sampled offer cash back for free. They include Albertsons, a grocer; the drugstore chains CVS and Walgreens; and discount retailers Target and Walmart. (Kroger proposed a $25 billion merger with Albertsons in 2022, but that deal is pending in court.) “Fees to get cash back are just one more nickel and dime that all starts to add up,” said Adam Rust, director of financial services at the Consumer Federation of America, an advocacy group. “It just makes it harder and harder to get by,” he said. “It’s thousands of little cuts at a time.” Luis Alvarez | Digitalvision | Getty Images A…

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Filed under: News - @ August 27, 2024 8:20 pm