Hm, I hope this is the right forum. I'm not really sure which kind of law this falls under. Or maybe its more a current event?

Anyway, I got some papers about a class action law suit against state farm about charging for doing monthly payments. I don't really understand what its about. I always thought the extra few dollars a month were just one of those annoying things companies could do just because. Maybe not? I tried calling the number for the law office to find out more about it but I just sat on hold for a long time before they told me to give them my number and they'd call me back. Anyone else know anything about this?

Most companies charge a fee for doing installment payments on insurance premiums. I'm not sure of the article you're referring to but there are actually additional costs associated with monthly billing (postage, manpower to process the payments, ink/paper supplies). So it's not a bogus charge. Also the fee varies on the method of payment (automatic bank draft vs. receiving a monthly statement). So I'm not sure how far this suit would go...

That makes sense. For me it was only 3 dollars every month. It doesn't really matter much since I'm able to pay my full policy at once ow anyway. It wasn't an article I read. It was this thing an attorneys office sent me. It just said that state farm was being accused of improperly collecting installment fees for monthly payments. But it didn't elaborate on how they were doing it incorrectly. They also sent me two papers, one of which I guess I'm supposed to send back. One is an objection. The other is a consent to pre-certification disclosure. If it goes to court and my records end up being subpoenaed from state farm does it really matter what I send back? It says I need to provide a reason if I object.

Hello j:

If you want to join the suit send back what the lawyer wants. If not, don't send anything.

excon

Not a lawyer here but the difference is whether you were notified about the fees for paying monthly or not.

If it is a class action suit, send back the paperwork if you want to be a part of it.

The problem here is that no one is going to make any money off this besides the lawyers. SF is charging what... $25 a year? If they settle, the lawyers take like 30% off the top and you get to split whatever is left... which will be pennies on the dollar most likely.

The other side of this is that SF will raise their rates to compensate for their financial loss. SO ultimately this may end up costing you more.

But feel free to be a party to suing a company for charging a minor charge for a convenience.

I agree with steve, you probably won't see any money.

But if you want to try, remember to check your bills history and make sure you were being charged for these installment fees and not something else you know? If the few dollars a month extra was something else, the suit may not apply toyou, then you can't join the suit anyway ;)

Good luck hon.

I already threw the papers away. I was charged 3 dollars a month for it. Sooo, I think $36 total. And like nikosmom pointed out, ink, postage, envelopes and all that for the monthly bill they sent me are sure to add up, so it seems pretty legit. I hadn't thought about what you said, steve. I hadn't cared much either way the suit went but thinking about it that way, now I hope it doesn't go anywhere because I don't want my rates increasing! Eek.

I also received paperworks from a law office saying that there is a class action lawsuit about the monthly fee.
There is a legitimate argument here because why not charge also a fee for 3 installments or 2 installments. Why only on monthly.
I am concerned because I submitted all the paperworks they sent me for my 3 cars and haven't heard from them and it's been almost 2 years. Also I know it is only $ 3.00 per month, but I have insured 3 cars with State Farm and I've been with them for 10 years before I received this letter from the lawyers. So approximately I should be getting back around $ 1,000. That's not bad considering today's economic hardship.
So if anyone has heard of this class action lawsuit, please post. I also have thrown those paperworks. But we need to get intouch with the lawyers or with State Farm Legal Dept. to see if this has been decided upon.

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Originally Posted by armialandy

I also received paperworks from a law office saying that there is a class action lawsuit about the monthly fee.
There is a legitimate argument here because why not charge also a fee for 3 installments or 2 installments. Why only on monthly.
I am concerned because I submitted all the paperworks they sent me for my 3 cars and haven't heard from them and it's been almost 2 years. Also I know it is only $ 3.00 per month, but I have insured 3 cars with State Farm and I've been with them for 10 years before I received this letter from the lawyers. So approximately I should be getting back around $ 1,000. That's not bad considering today's economic hardship.
So if anyone has heard of this class action lawsuit, please post. I also have thrown those paperworks. But we need to get intouch with the lawyers or with State Farm Legal Dept. to see if this has been decided upon.

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I've never heard anything more about the lawsuit since I started this thread last year. And actually, they do charge if you don't pay it all at once. I've paid half and then the rest later and there was a small fee for that too. So I'm not sure what legitimate argument you've got. I wouldn't count on seeing any money

The argument I stated here was from the papers that the lawyers sent me. I was actually surprised that someone was making an issue for $ 3.00 worth of fee.
If only I haven't thrown the papers then probably I can follow up or call the lawyers. I also want to make sure that the lawyers didn't just get us to submit then they will benefit from it, not the insured.

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There is a legitimate argument here because why not charge also a fee for 3 installments or 2 installments. Why only on monthly.

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That's the argument I was referring too. It's not legit at all because if you pay it in 2 installments you still get a fee

Yes, that's the point exactly. There should be a fee to any kind of installment. But haven't heard or received any update lately from the lawyers.
Probably we can search State Farm's legal dept.

Here is the website for the lawfirm. I have heard nothing on this case either.

http://www.rgrdlaw.com/

In June of 2010 the case was on appeal. Not sure where it is now

I received one of those too. I am not sure where mine is at this time. Could you post the law firms info? I want to call the law firm and find out if they received my response. Thanks!