PHILADELPHIA – A company is accused of using improper business practices regarding merchant services for credit and debit card payments.
Tech Lounge SP LLC and The Law Office of Kevin Adams PLLC filed a complaint on behalf of themselves and all others similarly situated on Sept. 7 in the U.S. District Court for the Eastern District of Pennsylvania against CardConnect Corp. alleging unjust enrichment and other counts.
According to the complaint, the plaintiffs allege that the defendant "induces merchants to enter business relationships with it and its member bank by promising it will charge merchants low, agreed-upon rates and fees for payment processing services. CardConnect then has merchants and a principal guarantor sign long-term written contracts with boilerplate, non-negotiable terms and conditions."
The plaintiffs hold CardConnect Corp. responsible because the defendant allegedly raises rates and imposes new processing fees after the contracts are signed.
The plaintiffs request a trial by jury and seek restitution; disgorgement; actual damages; compensatory, general and punitive damages; exemplary damages; interest; court costs and any further relief the court grants. They are represented by Richard M. Golomb and Kenneth J. Grunfeld of Golomb & Honik PC in Philadelphia.
U.S. District Court for the Eastern District of Pennsylvania case number 2:17-cv-04014-WD