COLDWATER, MI (WTVB) – The Coldwater City Council approved Resolution No. 26-25 this week, authorizing the city and the Coldwater Board of Public Utilities (CBPU) to file claims in a $1.225 billion class-action settlement against Discover Financial Services.
The lawsuit alleges Discover misclassified consumer credit cards as commercial cards from 2007 to 2023, causing entities to pay excessive interchange fees on transactions processed through systems like Invoice Cloud. According to City Attorney Amanda O’Boyle it remains to be seen as to what dollar amount of the settlement the city might receive
City Attorney Amanda O’Boyle will submit the claims by May 18, deadline , allowing the City and CBPU to receive a 100% refund of estimated fee overcharges plus interest. The approved action ensures the municipality recovers funds related to the misclassified transactions, following a settlement reached in the United States District Court, Northern District of Illinois.
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