Americans are losing at least $165 billion each year to what a new report calls the “Annoyance Economy,” a system of junk fees, robocalls, subscription traps, and administrative friction that drains both time and money. According to the study by Groundwork Collaborative, families collectively lose billions to surprise charges, health insurance paperwork, phone scams, and endless customer service loops. For professionals in the credit and collection industry, the data underscores a broader trend: consumer frustration is measurable, growing, and increasingly tied to financial services interactions.
The report estimates that junk fees alone account for $90 billion annually, or roughly $650 per household. Phone scams add another $25 billion. Robocalls cost $8 billion in lost time. Health insurance administrative burdens total $21.6 billion in wasted worker time each year. Overall, Americans receive nearly 4 billion scam and illegal marketing calls per month, or about 125 million per day.
Customer experience metrics reinforce the trend. Forrester’s 2024 Customer Experience Index found scores at their lowest point on record. The National Customer Rage Survey reported that 74% of customers experienced a product or service problem in the past year, more than double the rate recorded in 1976. The report also notes that time spent on the phone with customer service has increased 60% over the past two decades.
A central theme in the study is that many of these friction points are not accidental. Researchers cite subscription models that make cancellation difficult, noting that one study found making cancellation harder can boost revenues between 14% and more than 200% depending on the product. The “click-to-sign-up, call-to-cancel” dynamic is highlighted as a recurring business practice across industries.
The report also details regulatory shifts. It notes that recent efforts to impose all-in pricing rules on ticketing and lodging, cap certain bank overdraft fees, and strengthen click-to-cancel requirements have faced legal and political challenges. At the same time, the Consumer Financial Protection Bureau has experienced staffing reductions, and enforcement actions have slowed.
Polling cited in the report shows broad bipartisan frustration. More than two-thirds of voters say Congress should prioritize addressing business practices like spam calls and hidden fees. Nearly half of respondents indicated they would pay money just to stop unwanted spam communications.
