ComplaintsforPreferred Mutual Insurance Company

• Initial Complaint

  09/23/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I used a Credit Card to pay my insurance premium and they charged me a fee of $44.71 for using my credit card. It is against the law in NY to charge a fee for the use of a credit card to pay premiums. NY General Business Law 518.

  Business response

  10/02/2024

  Dear Better Business Bureau:
  We are in receipt of the complaint submitted to the Better Business Bureau by ******** ******** on September
  23, 2024, a copy of which is attached hereto for your reference as Exhibit A.
  As Ms. ******** points out, New York General Business Law Section 518, as amended, governs surcharges in
  New York and states in pertinent part:
  “Any seller in any sales transaction imposing a surcharge on a customer who elects to use a credit card in
  lieu of payment by cash, check, or similar means shall clearly and conspicuously post the total price for
  using a credit card in such transaction, inclusive of surcharge.” Emphasis added.
  In order to allow Preferred Mutual’s policyholders to be able to make premium payments using their debit and
  credit cards, Preferred Mutual has engaged a third-party payment *********, *** Inc, to process such payments.
  In order to make credit or debit card payment to Preferred Mutual, payers must utilize the *** Inc digital payment
  platform. *** Inc charges a processing (or platform) fee to cover its costs associated with processing the
  payment and the use of its payment processing platform. This is similar to how ******* ***** charges a fee in
  order to make a payment at their physical store. Since this charge is for the use of *** Inc’s digital assets and
  system, *** Inc is not a “seller” for the purposes of Section 518 and is not imposing a “surcharge” on a
  cardholder; rather, it is charging for a distinct service, the making of payments by electronic means. It is also
  important to note that *** Inc is not acting as an agent of Preferred Mutual, and Preferred Mutual receives no
  portion of the payment service fee from *** Inc. This interpretation has been agreed with by the New York
  Department of Financial Services (“DFS”) in a private letter ruling attached hereto as Exhibit B.
  Even if it were deemed that *** Inc is a “seller” and charging a “surcharge”, *** Inc’s system complies with the
  notice requirements as set forth in Section 518. *** Inc’s digital payment platform does not display a percentage
  but rather displays the total cost of the transaction including the payment service fee in a dollar amount, which is
  in compliance with the notice requirements of Section 518.
  Based on the above, it is clear that New York Section 518 does not apply to *** Inc’s charging a fee for the use of
  its digital payment platform to enable customers to transact and process card payment. And even if it did, *** Inc
  would be in compliance with notice requirements of Section 518.
  However, as we value Ms. ******** as a customer and in an effort at good customer service, we have asked One
  Inc to return the fee for this *** transaction. *** Inc has agreed to do so. Ms. ******** should receive a refund
  for the fee shortly.
  Please let us know have any questions or additional concerns.
  Sincerely,
  Sara C*******
  Accounting Manager
  ###-###-####
  

  Customer response

  10/02/2024

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  ******** ********
  
  
  
  
  

• Initial Complaint

  01/13/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Received a phone call saying by law my sister who just turned 18 needed to be on MY car insurance even though she would never be driving my car. Her legal address is not even the same as mine yet they added her and changed my auto insurance policy without my permission, increasing my almost paid off policy by $1,000. I tried to dispute it and ended up cancelling my auto insurance through them. There is no law in massachusetts saying I’m required to pay for someone who won’t drive my car and my new auto insurance even thought it was silly. My policy from preferred mutual ran from July 2022 to July 2023 but I pay it 9ish months out of the 12. I have now received a bill from preferred mutual stating I owe them the rest of the money for my policy when I already paid off service I didn’t receive. They should owe me money since I won’t be receiving 6 months of the policy that had $100 left to pay on it. And now they’re sending debt collectors after me, how is this even legal when my new auto insurance policy started 12/6/22

  Business response

  02/02/2023

   ear Ms. *****,This letter is in reply to your request for a refund on your automobile policy.After we requested information on a possible operator of your vehicle, your agency sent in an endorsement to add ****** ***** as an occasional operator on your policy to be effective 10/20/2022.As a result, we will not be providing a remittance of premium at this time.  However, if you can provide documented support that ****** was a rated operator on a policy elsewhere at the time we received the endorsement request from your agent, we will be more than happy to amend our policy rating.  I hope this letter finds you well.  We appreciate your business and wish you well going forward.  Sincerely,Christopher M. C**** Underwriting Manager – Personal Lines

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