H.A. Berkheimer Inc., a tax-collection agency that collects revenue for hundreds of school districts and municipalities, assessed collection fees against delinquent taxpayers in addition to interest and penalties. A class-action suit challenged the fees as improper and in the resulting proposed settlement Berkheimer is slated to pay $75,700 to aggrieved customers — most of whom did not file for the $48.50 refunds — while “lawyers with Bernard M. Gross of Philadelphia would be entitled to about $538,000”. Most of a previous $2 million settlement pot will revert to Berkheimer if a judge approves the deal, while 25 percent will go to two charities, Mercer Museum’s capital campaign and the Network of Victim Assistance of Bucks County. (Jenna Portnoy, “Deal would settle case for tax collection agency”, PhillyBurbs.com, May 23).
Tax-fee class action: claimants get $75K, lawyers $538K
H.A. Berkheimer Inc., a tax-collection agency that collects revenue for hundreds of school districts and municipalities, assessed collection fees against delinquent taxpayers in addition to interest and penalties. A class-action suit challenged the fees as improper and in the resulting proposed settlement Berkheimer is slated to pay $75,700 to aggrieved customers — most of whom […]
One Comment
The good thing is that the case is completely valid and should have been brought. The bad thing is the manner in which it was settled. Damages in a case like this should have been easy to determine and the identity and address of the claimants was readily available from the agencies records. I don’t have a problem with the fees if the time was spent, and the damages figure was not a cop-out. The payout of the settlement money is, however, suspect.