First Data Faces Class Action Over Equipment Insurance Fees

Law360, New York (October 12, 2012, 2:58 PM EDT) -- Payment processing company First Data Corp. was hit with a proposed class action in New York federal court alleging it fraudulently charged extra fees and hidden insurance premiums to merchants who leased its credit-card processing equipment, in violation of insurance statutes.

A group of merchants and small-business owners, including Clayton’s Auto Glass Inc. in Texas and the Linscott Law Firm PLLC in Idaho, brought suit Oct. 5 alleging First Data and its subsidiary First Data Merchant Services leased them credit-card processing terminals and pin pads under...
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