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A pair of Indiana residents have filed a class action lawsuit against an Indianapolis payment processing company for its allegedly deceptive collection process, which includes charging customers undisclosed, variable “convenience fees” whenever they pay utility bills.
Plaintiffs Amy Burke and Angelia McGlade filed the lawsuit Friday in Marion Superior Court against defendant PayGov.US LLC, according to court records.
“What this case is all about is putting money back in the pockets of consumers that were charged these fees and hopefully also improving this company’s business practices such that consumers have a clear view of what exactly they’re paying for when they pay for their vital utilities,” said attorney Tyler Brenden Ewigleben of Jennings & Earley PLLC, who is representing the plaintiffs in this case.
Michael Hiatt, who is listed as the registered agent for PayGov, told The Indiana Lawyer he was unaware of the lawsuit. He did not immediately respond to a request for comment.
According to the lawsuit, PayGov acts as a middleman between customers, municipalities, and utility companies, offering a website and app for customers to pay bills through. It is not affiliated with Pay.gov, which is an official website of the United States government.
But plaintiffs argue that PayGov charges “convenience fees” without meaningful disclosure and that the company falsely claims these fees are charged at a flat rate, when in reality, they vary depending on the price of the bill, according to the lawsuit.
According to PayGov’s website, the company claims to charge a flat convenience fee to cardholders who use the company’s services. But the lawsuit claims that any payment made over $100 has larger fees attached to it that increase in tandem with the price of the payment.
The plaintiffs also argue that PayGov’s terms and conditions do not disclose the “base” convenience fee amount, how that convenience fee is calculated, or that the fee increases as the payment does.
PayGov is being sued for unjust enrichment and allegedly violating the Indiana Deceptive Consumer Sales Act.
The plaintiffs are seeking an injunction forcing PayGov to adequately disclose the availability of alternative payment options to members of the class action suit and to adequately disclose its flat and variable convenience fees should customers choose to use PayGov.
They are also seeking an award of damages.
The case is Amy Burke, Angelia McBride v. PayGov.US LLC, 49D01-2511-CE-054307.
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