The Travelers Companies, Inc. faces a proposed class action lawsuit that claims the insurer illegally charged customers a $6 “Service Charge” to receive paper billing statements or pay bills by U.S. mail.
New York’s General Business Law, the case explains, forbids companies such as the defendant from “charg[ing] a consumer an additional rate or fee associated with payment on an account when the consumer chooses to pay by United States mail or receive a paper billing statement.” According to the case, the lead plaintiff has been insured by Travelers for many years and has been assessed a $6 fee every time he received a paper statement or paid a bill by mail instead of paying online or over the phone. The case contends that such fees are unfair to those who do not have access to, or familiarity with, the internet, and disproportionately affect low income customers.
The suit looks to represent a class of all New York residents who were charged a fee by the defendant to receive a paper billing statement and/or pay by mail. The lawsuit requests that Travelers disgorge its ill-gotten gains from charging these fees and restore the money to proposed class members.