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CitiStorage Billing Class Action Lawsuit
By Matt O’Donnell
CitiStorage – the largest independent record storage company in the U.S. – has been hit with a federal class action lawsuit for allegedly swindling customers with hidden fees.
The CitiStorage class action lawsuit claims the storage company misleads its customers with deceptive and misleading billing practices, despite selling itself as a company that has “simple” bills with “no hidden fees.”
“In stark contrast to its advertising claims, CitiStorage’s bills and billing practices are designed to mislead customers and generate millions of dollars in unwarranted late fee surcharges for the company,” said the attorney representing the plaintiff in the CitiStoarge class action. “[The Plaintiff] is one of thousands of its customers in the New York metropolitan area who have been bilked by this giant storage company’s underhanded billing scheme.”
According to the CitiStorage class action lawsuit, CitiStorage crafts its bills to include a 2% late fee surcharge in the total due on all invoices, even though the surcharge is not owed by customers if they pay their storage bill by the 15th of each month. In addition, the company sends its invoices four or five days into each month, which reduces the time customers have to pay their bills to avoid owing the surcharge, and it compounds its deception by failing to credit or return the 2% surcharge to customers who pay their bills on time.
The CitiStorage class action lawsuit says it’s “a textbook breach of contract and consumer fraud.” The lawsuit is seeking an injunction to stop the company’s deceitful billing practices as well as refunds for all CitiStorage customers who, within the past six years, have been billed for a hidden late surcharge, and whose late charges were not returned even though the company received payment on time.
Updated July 26th, 2011
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2 thoughts onCitiStorage Billing Class Action Lawsuit
Many of their client files are also stored in a NJ warehouse that many clients are unaware of. The storage facility sustained major water damage during hurricane Sandy and the clients were told that they sustained no damage. Many of our files were received soaking wet and molded. This company is one big scam.
Did you work for CITISTORAGE?