Central Payment Co. improper fees $84M class action settlement

Central Payment Co. has agreed to an $84 million class action lawsuit settlement resolving claims it misrepresented and improperly added fees for its card-processing services. The deadline to file a claim with the Central Payment settlement administrator is Aug. 6, 2022.

The class is made up of current and former Central Payment customers who, between Jan. 1, 2010, and Oct. 31, 2020, were assessed the TSSNF and PCI noncompliance fees; had their contractual credit card discount rates increased above their contractual rate by the company; and for whom the company shifted their credit card transactions from lower-cost rate tiers to higher-cost tiers.

Central Payment Co., based in California, provides services related to transaction processing, and also offers ATMs, software and other related products, according to Bloomberg.

Plaintiffs claim Central Payment misrepresented the fees it charged for card-processing and improperly added and inflated fees, according to the settlement website.

While the company denies any wrongdoing, it has agreed to the settlement to resolve the claims made in the class action lawsuit.

The $84 million Central Payment class action lawsuit settlement fund will be used to pay costs such as attorneys’ fees, as well as cash payments to class members.

Class members who had one or more payment card processing accounts with or through the company as of March 9, 2022, are considered “Current Customers;” any class member who does not qualify as a Current Customer is considered a “Former Customer.”

Current Customers will automatically receive their payment, while Former Customers will need to file a claim form in order to benefit from the settlement.

After the administrator receives all Former Customers’ claims, they will total class member payments, administration costs, any taxes paid, attorneys’ fees and expenses, and service awards for the class representatives.

If the total comes to less than $84 million but more than $58.8 million, Central Payment will retain the difference between the total and the $84 million. 

If the total comes to less than $58.8 million, Current and Former Customers who filed a valid claim will share an additional payment of the difference between the total and $58.8 million, to be made at the same time as the other cash payments.

When payments are ready, the administrator will email class members with the option to receive their payment via Venmo or Paypal. Anyone for whom the settlement administrator does not have an email address or who does not select an electronic payment method within seven days of receiving their email will receive a physical check at the mailing address on record.

Class members should have received an email or postcard notice regarding the settlement; however, anyone who did not receive a notice but believes they belong to the class may contact the settlement administrator. 

A final approval hearing in the Central Payment fees class action lawsuit settlement will take place July 25, 2022.

The deadline for class members to opt out of or object to the settlement is June 7, 2022.

The deadline to file a claim with the Central Payment settlement administrator is Aug. 6, 2022.

Who’s Eligible

The class is made up of current and former Central Payment customers who, between Jan. 1, 2010, and Oct. 31, 2020, were assessed the TSSNF and PCI noncompliance fees; had their contractual credit card discount rates increased above their contractual rate by the company; and for whom the company shifted their credit card transactions from lower-cost rate tiers to higher-cost tiers.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

08/06/2022

Case Name

Custom Hair Designs by Sandy, LLC, et al. v. Central Payment Co., LLC, Case No. 8:17-cv-00310-JFB-CPZ, in the U.S. District Court for the District of Nebraska

Final Hearing

07/25/2022

Settlement Website

CentralPaymentClassAction.com

Claims Administrator

Central Payment Settlement Administrator
P.O. Box 5747
Portland, OR 97228-5747
855-654-0931

Class Counsel

Tyler Hudson
Eric Barton
Melody Dickson
WAGSTAFF & CARTMELL LLP

E. Adam Webb
Matthew C. Klase
WEBB KLASE & LEMOND LLC

Defense Counsel

Jonathan R. Chally
COUNCILL GUNNEMANN & CHALLY LLC

David L. Balser
Brandon R. Keel
KING & SPALDING LLP