A New Jersey-based company that processes payments for public school lunch programs is unfairly charging parents as much as $100 million in unnecessary “
But according to the complaint, which was filed Wednesday, PayPAMS and other companies like it “take lunch money away from kids, and particularly low-income kids, by charging ‘convenience’ and ‘service’ fees at the school lunch counter.” Those fees can divert up to $0.60 to payment processors for every $1 spent by low-income families on school lunches, according to the Consumer Financial Protection Bureau.
The complaint was filed in the U.S. District Court for the District of New Jersey by a coalition of consumer advocacy attorneys, who are accusing the company of running afoul of state consumer fraud laws.
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