NSW Merchant Fees Surcharges
Omni Bridgeway is funding a class action against the New South Wales Government on behalf of persons who paid merchant fees on card and PayPal transactions.
Piper Alderman are the lawyers on the record for the class action.
Background
On 23 October 2024, the NSW Government published a media release in which they admitted that, since 2016, there has been approximately 92 million customer card transactions and $144 million in merchant fees (referred to in the claim as a “Merchant Fees Surcharge”) levied by NSW agencies such as Service NSW and Revenue NSW without a lawful basis.
The media release stated that in respect of Service NSW,
“…Service NSW’s practice of charging merchant fees had been flagged as unlawful in legal advice received from the Crown Solicitor's Office between February 2016 and December 2022. Despite this, merchant fees continued to be passed onto customers.”
The NSW Government received legal advice on four separate occasions from the NSW Crown Solicitor indicating that the practice was unlawful.
In public statements, including on its website, the NSW Government has acknowledged that the fees should not have been passed on. As at the date of filing, the NSW Government has not confirmed whether it will refund the Merchant Fee Surcharges paid by class members.
Cause of Action
It is alleged that the NSW Government owed people who paid merchant fees a duty of care, and that it breached that duty of care by continuing to charge the fees despite having received legal advice, on four separate occasions, that doing so was unlawful. It is also alleged that the NSW Government made misleading statements about its right to charge these fees, and that this conduct breached Australian consumer protection laws.
Am I Eligible to Join this Class Action?
You may be eligible to join the class action if you paid a merchant fee to the NSW Government (for example, when renewing a driver licence, renewing or transferring a vehicle registration or purchasing a National Parks annual pass, using a card or PayPal) in the period 23 September 2020 to 23 September 2026.
How Much Will It Cost to Be a Part of the Class Action
The class action is being funded by Omni Bridgeway on a “
no win, no pay” basis in accordance with the terms of a funding agreement or terms imposed by the Court. If the class action is successfully resolved and there is a recovery of compensation, Omni Bridgeway will be entitled to reimbursement of the costs it has spent plus a commission from such recovery only.
There are no ‘
out of pocket’ costs for class members to pay.
Will There Be Any Cost to Me if the Class Action Is Unsuccessful?
No. Class members do not have to pay anything in the event that the class action is unsuccessful, as Omni Bridgeway agrees to pay any legal costs that might be awarded to the defendant.
How Do I Express My Interest
You can register your interest to participate in the class action, receive information and be updated on key developments as the class action progresses by clicking on the button below. Registering your interest is free and without obligation. Merely registering your interest via this website does not bind you to any contract or commitment.
If you have any queries, you can contact the Omni Bridgeway Client Liaison Team by email on
[email protected]