Subway Class Action Lawsuit – How Does Subway Treats Cardholders?

Subway Class Action lawsuit claims that Subway breached federal laws regarding the collection of credit card debt by charging consumers more than their available credit limit for purchases. Many consumers who use a debit or credit card to purchase food or other consumable items at the popular fast food restaurant Subway could qualify for a massive settlement if a class action suit is filed against the chain. Lead plaintiffs alleged in Subway Class Action lawsuit that Subway violated federal laws regarding the collection of credit card debt by charging consumers more than their available credit limit for purchases. This law, commonly known as the “minimum charge” rule, limits how much a credit card company can charge its customers based on purchases they make.

Subway is among the many fast food chains and restaurant chains, which often impose this limit on their credit card users. Subway is accused of overcharging their customers when they use their card to purchase food at its stores. According to Subway class Action lawsuit, many Subway customers complained that when they use their credit card to make a purchase, the price of the item goes above their available credit limit. The chain is said to charge more for purchases made with their debit or credit card than they do for purchases made with cash or checks. If you are a Subway customer who believes you were overcharged by the sandwich chain, you are encouraged to speak with your bank or financial institution’s card representative to discuss any fees and/or charges you might be facing with your current credit card provider.

Subway is not alone in facing lawsuits related to this type of credit card debt. Other popular fast food chains such as McDonald’s, T.G.I. Drinks, and Carl’s Jr. have faced similar legal claims from plaintiffs claiming they overcharged their customers. Many Subway Class Action lawsuit plaintiffs also claim that Subway has illegally placed expiration dates on their plastic gift cards.

According to Subway class action lawsuit, the sandwich chain often places expiration dates on its gift cards or other promotional plastic products that state they are valid for no more than a specific amount of time. The lawsuit claims that in practice, the restaurant chain charges higher amounts of money from customers when the “expiration dates” are reached, which is why they are able to charge higher prices on its food items after the expiration dates have been reached. Subway class Action lawsuit claims that these practices have caused many Subway customers to be charged with overbilling.

In addition, the Subway Class Action lawsuit also claims that the chain has a policy in place that states that cardholders are not allowed to carry their credit card balance with them at all times, including when they travel. While most cardholders are allowed to carry a certain amount of credit on hand, this card balance cannot be used to make a single out-of-pocket purchase.

Subway also claims that it uses the “minimum charge” rule, which states that if a customer wants to make a purchase on a credit card, they must pay the total amount for the purchase plus any applicable sales tax or service charge before they are permitted to use the credit card. Subway claims that this rule makes it impossible for many cardholders to purchase items on the credit card at more expensive establishments, which in turn forces them to use cash to make purchases. For example, a customer cannot purchase an item such as a coffee at Starbucks if he or she already has an outstanding balance on the card. In essence, if a customer makes a purchase and already has an outstanding balance on a credit card, the cardholder is charged more than his or her available credit limit on the item, so the diner must pay the remaining balance first, which is often a lot more than he or she could afford.

Subway has also received a number of complaints from customers who claim that they are required to pay the same rates regardless of whether they make a purchase at a restaurant, a supercenter, or anywhere else. Subway class action lawsuit claims that in order to provide discounts to its cardholders, the company has to charge the same rate no matter where they purchase from. The lawsuit claims that this practice violates the Federal Trade Commission Act because, under the law, businesses cannot discriminate based on gender, race, religion, or national origin.

Subway class action lawsuit also claims that the company has encouraged and/or forced cardholders to use plastic gift cards to make purchases from Subway restaurants. However, the lawsuit claims that many cardholders are afraid to do so because they are not aware that they are only allowed to use their credit cards to purchase items at certain locations. Subway also claims that it encourages cardholders to use other outlets to make purchases on their plastic gift cards instead of spending these credits at Subway restaurants.

2 thoughts on “Subway Class Action Lawsuit – How Does Subway Treats Cardholders?

  1. Can a SUBWAY restaurant refuse to take a non expired Subway coupon. The coupons says void in AK,&HI. I live and presented to coupon in Huntley IL.60142. Please advice.

  2. I have a subway gift card for $15. It was given to me probably last Christmas and languished in my drawer for a year or more. Finally got it out to use it and it was refused at the local subway. The clerk said that happens alot. I got on the phone number on the card and they said they are going to all digital support so no agent. Then it wanted the pin number which had not been scratched yet. So I went to scratch it off and the cover was so hard that it scratched the number off as well. I have sent 3 messages by the only way I have which is a form on subway.com/howcanwehelp the first one in mid december. No response. At this point I believe this might be a set of policies that together, by design or happenstance, wind up stealing money from gift givers. Of course the level of loss of any one gift receiver or giver is so small that they get away with it. Some investigation to compare the number of gift cards not redeemed might help understand if this is a one off or systemically ripping people off.

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