LOS ANGELES (Legal Newsline) – A monthly subscriber to a water service says in a class action lawsuit that Nestle charges a late fee that is more than allowed by California law.
Donell Corey Kendall filed his case Sept. 23 in Los Angeles state court through lawyers at Beverly Hills Trial Attorneys and Law Office of Alexis Djivre. The defendant removed the case to federal court on Nov. 17.
Nestle’s delivery service imposes a late fee of the greater of 1.5% interest on unpaid amounts or $20.
“Because the monthly interest was usually so minimal, Defendants always charged the $20 fee,” the lawsuit says. “That flat fee was often in excess of 70% per month of the actual cost of the beverage service.”
The suit says California law caps late fees at 18%.
“When Plaintiff entered into an agreement to purchase water delivery services from the defendants, he was unaware that any late fee he would be charged was akin to usury,” the suit says.