300+ New York Parking Garages Sued for Illegal Credit Card Surcharges
Two of New York City’s largest parking garage operators are now facing a class action lawsuit for their credit card processing fees. Russell Spitzer and Margo Stankus are suing Icon Parking Systems and Quik Park Management because they say their $2 surcharge on payments made by credit card violate the state’s General Business Law.
In October 2015, a federal appeals court approved the state of New York to ban credit card surcharges. With the new rule, merchants could no longer charge extra fees to consumers who chose to pay with a credit card instead of cash. Merchants must still pay fees to their card processors, but they are not able to pass the fees onto the consumers.
Under that ruling, the parking garage operators would only face a fine of up to $500 or one year imprisonment. However, the class actions are being filed for more than 15,000 drivers in New York for an undisclosed amount of money, which means the companies may have to pay a fee per driver – not one fee to the state.
The lawsuit also requests the garages to immediately stop assessing these credit card surcharges, but they have not done so at this time. Icon operates over 200 garages in the city, and Quik Park operates an additional 140 garages.