Jul 07 2008
I’ve been amazed by how FedEx Trade Networks (and other couriers) could charge a hefty brokerage fee for very little service and get away by doing so like an unalienable right.
Well, Mr. Matt Blackman of North Vancouver, British Columbia decided to stand up and filed a class action against Fedex Trade Networks and Fedex Ground Package System. According to the statement of claims (No. S066949 dated 01/23/07) in the Supreme Court of BC, Mr. Matt Blackman ordered automotive accessories from Santa Monica, CA, which were delivered to his home by Fedex.
Subsequent to delivery and by a letter dated June 16, 2006, Fedex demanded payment from the Plaintiff of the following Improper Charges:
(a) Brokerage fee: $27.00
(b) GST calculated on brokerage fee: $1.89
(c) Disbursement fee: $5.75
(d) GST calculated on disbursement fee: $0.40
(e) Total Improper Charges: $35.04
… The Disbursement fee of $5.75 amounts to interest charged by Fedex on the funds advanced for the payment of GST and PST calculated on the value of the goods shipped and represents a “criminal rate” of interest as set out in s.347 (2) of the Criminal Code in that it substantially exceeds 60% which is the maximum annual rate of interest allowed to be charged on credit advanced.
All BC residents being charged by Fedex for disbursement fees can be part of the class action. You can read the court filing here.