The cost of complexity

Complexity equals profits.

In a recent study conducted by the Consumer Financial Protection Bureau (CFPB), consumers paid more for service with complex pricing structures (like added junk fees) than for services with one all-in price.

And that translates into far more profits to the provider.

We see this all the time with hotels and credit cards. Teaser rates that get your attention then additional fees that no one can quite understand until too late. Like "resort fees" that are billed when you check in and 0% credit cards that balloon upon the 6-month expiration.