The Federal Trade Commission has filed a lawsuit against a payments company that allegedly misled consumers about millions of dollars in junk fees that it was adding to their bills by charging consumers to make a payment and then printing a paper check and mailing it to the company being paid.
The Background: The FTC claims that the company, called Doxo, and its co-founders, Steve Shivers and Roger Parks, have received thousands of complaints over the years from consumers who had their utilities shut off or their insurance coverage lapse because the bills weren’t paid on time, yet did nothing but continue to operate.
- The company purchased search engine ads that appear when consumers search online for information about companies they owe money to. The ads are created to make it appear as though Doxo is affiliated with those companies. When consumers click on the ads, they are taken to landing pages that feature the biller company’s name and logo even though Doxo has no relationship with the company.
- Consumer enter in their billing information and then Doxo shows a final payment amount, which includes an extra fee that is included only at the final payment step, and even then only in greyed-out fine print, according to the FTC.
- When the payment is finalized, the company would then print off a check and mail it to the company that is owed.
- Not only have consumers complained, but billers, too. Hundreds of companies allegedly contacted Doxo and asked to be removed from its directory.
The Claims: The company is accused of violating the Federal Trade Commission Act, the Restore Online Shoppers’ Confidence Act, and the Gramm-Leach-Bliley Act.
