Doxo class action over unwanted bill pay fees, subscriptions can continue

Doxo class action lawsuit overview:

• Who: A Washington federal judge partially denied a motion to dismiss a class action lawsuit against bill payment service Doxo Inc.
• Why: The judge determined the plaintiffs’ claims against Doxo were sufficiently pleaded.
• Where: The Doxo class action lawsuit was filed in Washington federal court.

A Washington federal judge ruled a class action lawsuit against bill payment service Doxo can continue.

U.S. District Judge Thomas Zilly held that claims against the company were sufficiently pleaded, partially denying a motion to dismiss the lawsuit.

Doxo and its co-founders, CEO Steven Shivers and Vice President of Business Development Roger Parks, filed a motion to dismiss the class action lawsuit, arguing the plaintiffs failed to sufficiently plead their claims of violations of the Washington Consumer Protection Act (CPA), unjust enrichment and declaratory relief.

Plaintiffs Douglas Mundle and Pamela Knight accuse Doxo of engaging in unfair and deceptive acts and practices in violation of the CPA and receiving and retaining unjust benefits from consumers for unwanted fees and paid subscription plans. The two argue they are entitled to declaratory relief under the Declaratory Judgment Act.

Plaintiffs claim Doxo misrepresented itself as official payment channel

Mundle and Knight claim Doxo misrepresented itself as an official payment channel and failed to clearly disclose material terms or obtain consent before charging consumers’ credit cards, debit cards, bank accounts or other financial accounts for its bill payment services, including paid subscription plans.

The plaintiffs say Doxo’s website included general disclaimers during the payment process stating it is not affiliated with some billers but argue that the repeated use of billers’ logos and names throughout the site supports their theory that consumers were misled by the conflicting information.

Zilly ruled that the plaintiffs sufficiently alleged Doxo’s conduct could deceive consumers and that Mundle met the heightened pleading standard under the Federal Rule of Civil Procedure 9(b) by alleging an unfair or deceptive act.

Zilly found the plaintiffs’ allegations sufficient to support a CPA claim against Shivers and Parks, ruling the co-founders were aware of the specific nature of consumers’ confusion regarding Doxo’s subscription services and its relationship, or lack thereof, with billers.

The judge denied Doxo’s motion to dismiss the class action lawsuit, ruling that the plaintiffs sufficiently alleged it would be inequitable for Doxo to retain the payments under the circumstances.

In related news, payment processing company First American Payment Systems agreed to pay $4.9 million to settle a lawsuit with the Federal Trade Commission over allegations that it used deceptive sales tactics and charged business owners early termination fees when they canceled their accounts.

Have you ever been charged unwanted fees by Doxo? Let us know in the comments.

Mundle is represented by Thomas E. Loeser and Karin B. Swope of Cotchett Pitre & McCarthy LLP and Derek W. Loeser, David J. Ko and Andrew N. Lindsay of Keller Rohrback LLP.

The Doxo class action lawsuit is Mundle, et al. v. Doxo Inc., et al., Case No. 2:24-cv-00893, in the U.S. District Court for the Western District of Washington.

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