The Federal Trade Commission (FTC), has made a big step in favor of small businesses that have been adversely affected through the whole series of deceptively low-cost practices by First American Payment Systems. Refunds totaling over $2.6 million are being issued to businesses affected. If you are wondering if your business qualifies and how to recover this refund, read on.
Who is eligible for the FTC refund?
The FTC has identified 5,588 small businesses that were directly influenced by First American’s misleading practices. These businesses are currently receiving checks for refunds, which must be cashed within 90 days of receipt. Besides that, the FTC is contacting 16,181 businesses that enrolled with First American between June 2017 and April 2020 and subsequently canceled services. If your business incurred any early termination fee during this time frame, you might be eligible for a refund.
Read more: IRS2Go: where to download and how the IRS app works to file taxes online and get refunds faster
How to claim your refund from first american payment systems
If you receive a complaint form from the FTC, you need to take immediate action. Refund requests are enabled online. FirstAmericanPaymentSettlement.com by inputting the claim number found in your letter. The claim will expire on May 7, 2025. If you need to ask any questions or you need any assistance, you may contact JND Legal Administration, the refund administrator for this case, at 877-595-0114.
Understanding the FTC’s lawsuit against first american payment systems
A lawsuit was filed by the FTC in July 2022 against First American Payment Systems for allegedly utilizing unscrupulous sales practices against small business owners. Allegations range from false promises about fees and savings to unauthorized withdrawals from accounts, hidden terms and exit fees that are unexpected. The company settled for a payment of $4.9 million, which is being returned to businesses that are affected.
What to do if you haven’t received a claim form
If your business has been negatively affected due to First American’s practices and you have not received a claim form, you should contact the refund administrator. They will provide direction on your eligibility and what you need to do next. Remember that the FTC will never request payment or sensitive information from you in order to process a refund. Always verify any messages you receive.
Next steps for affected small businesses
If your business is adversely affected by First American Payment Systems, you need to take note of the following steps:
- Check your mailbox – Expect a refund check or claim form from the FTC.
- File your claim – If you deem eligible due to receipt of a claim form, submit your claim online until May 7, 2025.
- Be cautious – Scams abound. The FTC is not going to demand payments or any sensitive details in order to process your refund.
For more details, go to the FTC’s official page regarding First American Payment Systems settlement: ftc.gov/FirstAmerican. Otherwise, you may seek assistance with regard to your inquiries by contacting the refund administrator at 877-595-0114.
By staying informed and taking prompt action, you can ensure that your business receives any refunds it’s entitled to from this settlement.
