School lunch fees are hurting parents wallets

  • 3 months ago
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why the CFPB is taking on school lunch fees.

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Transcript
00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:04There's a positive vibe around tech Wednesday,
00:07thanks to the latest quarterly results.
00:09Advanced micro devices topped expectations
00:11and guided full year estimates higher.
00:13The company pointed to strong demand for its AI chips.
00:16Microsoft beat forecasts, even though revenue
00:19from its cloud business came in ever so slightly
00:22below analysts' targets.
00:24Investors also have economic news
00:25to consider.
00:26Private hiring in July was much weaker than expected,
00:29according to payroll company ADP.
00:32The Federal Reserve will likely take the hiring
00:34slowdown into account for its decision on interest rates.
00:38In other news, the Consumer Financial Protection Bureau
00:41is going after the high fees some parents are
00:44paying for school lunch programs.
00:46In some cases, these online payment processing fees
00:50can eat up to $0.60 of every dollar
00:52deposited to a digital lunch money account.
00:55Quote, transaction fees and other types of junk fees
00:59can take an economic toll on American families
01:02just trying to pay for basic school expenses,
01:04including school lunch for kids.
01:06Today's report will help school districts
01:08avoid contracts with financial firms
01:11that harness excessive fees from families
01:13who purchase school lunch, CFPB Director Rohit Chopra
01:16said in a statement.
01:18According to the CFPB, the top five online payment
01:22processing companies charge a fee of 3.5% to 4.58%
01:27per deposit.
01:29This puts a bigger financial burden on lower income families
01:33who tend to make smaller deposits more frequently.
01:37On top of that deposit fee,
01:39there is a $1 to $3.25 transaction fee
01:43every time the student buys lunch.
01:46The CFPB estimates these companies are raking in
01:49between $28 million and $92 million
01:52from students paying full price for lunch
01:55and an additional $1.9 million to $10.2 million
01:59for students who qualify
02:01for the reduced price student lunch program.
02:04That'll do it for your daily briefing
02:05from the New York Stock Exchange.
02:07I'm Conway Gittens with The Street.

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