PITTSBURGH – A Pennsylvania man claims that a leading automobile financing company charges and collects illegal “pay-to-pay” fees from consumers statewide, in violation of the Commonwealth’s Consumer Credit Code.
Mathew Caughey of Lawrence County first filed suit in the Allegheny County Court of Common Pleas on Feb. 6 versus Santander Consumer USA, Inc. (doing business as “Chrysler Capital”), of Dallas, Texas.
“On Oct. 4, 2021, Caughey purchased a Jeep. The plaintiff bought the vehicle primarily for personal, family, or household purposes and pursuant to a written Retail Installment Sale Contract. The RISC contains a choice of law clause selecting federal and Ohio law,” the suit says.
“Although Caughey travelled to Ohio to purchase the vehicle, Pennsylvania taxes were charged on the sale, the RISC listed a Pennsylvania address for Caughey, the vehicle is titled, registered, garaged, and principally used in Pennsylvania, the vehicle is inspected in Pennsylvania annually pursuant to Pennsylvania law, the vehicle is insured under a Pennsylvania auto insurance policy, all payments on the vehicle were made while Caughey was in Pennsylvania with a debit card with a Pennsylvania billing address, and the dealership sent a check into Pennsylvania to pay for the vehicle to be titled, registered, and licensed in Pennsylvania. Consequently, Pennsylvania law applies.”
The suit continues that after buying the vehicle, Caughey began making payments to Chrysler.
“On Aug. 10, 2022, Caughey made a payment by phone using a debit card. Chrysler charged a $3.75 ‘money transfer fee’ for this payment. On Sept. 3, 2022, Oct. 6, 2022, Nov. 4, 2022, and Nov. 6, 2022, Caughey made payments online using a debit card. Chrysler charged a $2.75 ‘money transfer fee’ for each payment,” the suit states.
“As described herein, these ‘money transfer fees’ and similar “pay-to-pay” fees are illegal under Pennsylvania law. Chrysler knew or should have known that it was impermissible to charge, collect, contract for, or receive ‘pay-to-pay’ fees from Caughey. As a matter of policy or practice, Chrysler regularly charges, collects, contracts for, or receives ‘pay-to-pay’ fees from Pennsylvania purchasers, despite that the fact that these fees are illegal under Pennsylvania law. As a result of this conduct, Caughey and many Pennsylvanians lost money.”
For counts of violating the Unfair Trade Practices and Consumer Protection Law, the Loan Interest and Protection Law and unjust enrichment, the plaintiff is seeking to be the appointed class representative, a declaration that Chrysler’s conduct was unlawful and that it may not charge or collect any “money transfer fee” or any other “pay-to-pay” fee, plus class awards of actual, compensatory, consequential, statutory, treble and all other damages available under the law, restitution, attorneys’ fees, costs and expenses, pre- and post-judgment interest, and all other relief that is just, equitable and appropriate, as the Court may allow.
The plaintiff is represented by Kevin Abramowicz, Kevin Tucker, Chandler Steiger and Stephanie Moore of East End Trial Group, in Pittsburgh.
The defendant has not yet secured legal counsel.
Allegheny County Court of Common Pleas case GD-23-001775
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com