A proposed class action lawsuit alleges that GasBuddy, LLC misrepresented itself as a service to help consumers save money on gas while failing to disclose that those who use its charge card face “enormous and undisclosed risks” of incurring insufficient funds and overdraft charges.

The 16-page case alleges that although GasBuddy assures consumers that its payment cards are “like a debit card”, this is far from the truth. According to the lawsuit, the GasBuddy card, which consumers can use at some gas stations to supposedly save pennies per gallon on fuel, is “nothing” like a “debit card” since transactions can be approved even when there are insufficient funds in a person’s checking account. Moreover, transactions are often processed days after their initial appearance, when users may no longer have sufficient funds in their accounts, depending on the case.

None of these risks are disclosed to consumers when they sign up for GasBuddy, according to the complaint. The lawsuit alleges that, unbeknownst to consumers, any money they might save with their GasBuddy card is far outweighed by the “massive risk” of incurring “extreme and overwhelming” insufficient funds (NSF) and charges for discovered related to the use of the service. The case argues that consumers would not have used GasBuddy if they had been properly informed of the risks involved.

“In its rush to market itself as convenient, simple, automatic, ‘like a debit card’ and offering guaranteed savings, GasBuddy is not disclosing that overdraft and NSF fees are a likely and devastating consequence of using of his service,” reads the complaint. “No reasonable consumer would run that risk.”

The lawsuit states that when a consumer registers with GasBuddy, they are asked to provide their checking account information. Although GasBuddy assures users that its payment card is “much like a debit card” in that GasBuddy will deduct money from their checking accounts”[e]As soon as you swipe your card, the company’s service is, in truth, an electronic check, according to the case.

Yet, unlike electronic checks, GasBuddy does not verify that a consumer has sufficient funds in their account to cover the transaction, even if they “have the ability to do so,” according to the lawsuit. Additionally, the lawsuit says that GasBuddy often bundles transactions over multiple days and submits them for processing “in giant batches” on the Automated Clearing House (ACH) network, causing processing delays that often trigger transaction fees. NSF and overdraft.

“If GasBuddy acted faster, transactions would often be debited while consumers still had funds in their account,” the complaint states, claiming that GasBuddy refused to implement existing technology for “virtually instantaneous” processing due to of the cost involved.

Given the “real and repeated risk” of incurring NSF and overdraft fees by using GasBuddy’s service, the company’s representations that it provides gas savings are misleading, according to the lawsuit. The plaintiff, a Texas resident, claims that although he saved “a few cents per gallon” on gas when using GasBuddy, the service cost him at least $200 in overdraft and NSF fees. . According to the lawsuit, the plaintiff would not have subscribed to GasBuddy – let alone paid a $4.99 monthly subscription for “premium” services – had he known of the true risks involved.

Plaintiff seeks to represent anyone who has used the GasBuddy service and incurred overdraft or NSF charges as a result of a GasBuddy transaction.

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