Class Action Lawsuit Filed by Webb, Klase & Lemond, LLC Against Priority Payment Systems and Priority Technology Holdings Alleging Fraud and Overbilling

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Lawsuit alleges that Priority assesses improper fees after allegedly inducing merchants to enroll in payment processing contracts by falsely offering services and pricing it does not intend to provide.

Atlanta-based law firm Webb, Klase & Lemond, LLC has filed a nationwide class action lawsuit against payment processing giants Priority Payment Systems, LLC and Priority Technology Holdings, Inc. (collectively, “Priority”). Priority handles credit and debit card processing for over 200,000 customers in the United States. The suit alleges Priority maintains a systematic policy of enrolling customers under false pretenses and then overbilling them for amounts not shown on their contract or fee schedule.

The Class Action Complaint asserts that Priority uses a network of independent sales agents to sign up customers. The suit alleges that such sales agents include Wholesale Payments, Cynergy Data, Simplify Commerce, Priority Commercial Payments, and many local independently-owned sales offices under the “Priority Payments” name, such as Priority Payments of North Atlanta, Priority Payment Systems Gulf Coast, Priority Payments Local, Priority Payments Global, and Priority Payments of Texas. It is alleged that these sales agents, and hundreds of others, sign up customers for Priority using Priority’s form contract. Therefore, customers may not even realize they have entered a contract – not with the sales company – but with Priority and Wells Fargo Bank, N.A.

In the Complaint, the Plaintiffs contend Priority has perpetrated a nationwide “bait and switch” scheme by luring merchants in with false promises, such as technological capabilities Priority does not offer or low rates and fees. The suit alleges that Priority then charges customers excessive fees, even if they are never able to use their accounts. Moreover, as alleged in the Class Action Complaint, when merchants realize they have been overcharged and attempt to leave Priority, they are often informed they must pay an early termination fee of several hundred dollars. The Class Action Complaint describes hundreds of similar complaints from customers nationwide.

The legal claims referenced in the Class Action Complaint are for fraudulent inducement, breach of contract, and unjust enrichment. The Plaintiffs also specifically allege that Priority has violated the covenant of good faith and fair dealing. The Plaintiffs seek the return of all improper fees they paid Priority, the rescission of the fraudulently induced contracts, and declaratory and injunctive relief.

The case, styled Braids R Us 305, et al. v. Priority Technology Holdings, Inc., et al., is pending in the Superior Court of Cobb County, Georgia and has been assigned case number 2021-0151551-CV.

If you wish to discuss this class action or have any questions concerning this press release, please contact Webb, Klase & Lemond, LLC at (770) 444-9325 or contact@WebbLLC.com. You may also visit the firm website at http://www.WebbLLC.com.

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E. Adam Webb
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