Class action filed against UPS

Discussion in 'The Latest UPS Headlines' started by cheryl, Jan 2, 2014.

  1. cheryl

    cheryl I started this. Staff Member

    Class action filed against UPS - Atlanta Business Chronicle

    “Despite the clear disclosure by UPS that the first $100 of declared value coverage is free or at no charge, UPS has systematically charged and caused its agent and sales network to charge customers an additional amount for coverage for the first $100 when they purchase additional declared value coverage,” the lawsuit contends.

    The complaint alleges that UPS has charged customers for the first $100 of declared value coverage even though UPS already accepts liability for loss or damage for all packages up to $100 as part of its normal service fee.
  2. upschuck

    upschuck Well-Known Member

    I've noticed today that from $100.01 to $300 is charged the $300 amount. Don't know if this is just a goof, or was meant to be that way.
  3. oldngray

    oldngray nowhere special

    I thought customers complained about being charged for that first $100 years ago and it was fixed. Apparently not.
  4. worldwide

    worldwide Active Member

    Not sure if this refers to The UPS Store network which charges Retail rates. The 2014 Retail rates for declarred value are:

    – $0.00-$100.00 - $0.00
    – Over $100.00, for each $100.00
    (or portion of $100.00) of the
    total value declared $0.90
    – Minimum charge $2.70

    These charges are clerly spelt out and it is not mandatory that excess declared value be purchased so I'm not clear on the jist of the lawsuit. BTW, Fedex has the same charge so you would expect they would be part of this class action suit.

    The wording of the lawsuit is vague. Regardless of the outcome, the lawyers still get paid and UPS may simply settle the lawsuit verus dragging things out.
  5. upschuck

    upschuck Well-Known Member

    When did the minimum charge of $2.70 go into affect. Last week there was no minimum charge. I guess UPS was not making enough money.
  6. worldwide

    worldwide Active Member

    The minimum charge of declared value has been in place for several years for any shipments with a declared value greater than $100. UPS put it in place to match Fedex which had a minimum charge on declared value from the start. There is no charge from UPS for any package with no declared value so I'm not sure what the lawsuit is referring to.
  7. oldngray

    oldngray nowhere special

    I think it was some UPS stores charging insurance for the first $100 of value (which should have been no charge). Therefore, the suit.
  8. jim_flint

    jim_flint Member

    I believe that the argument of the suit is that the declared value fees are .90/$100, but that the first $100 should be free regardless of how many additional hundreds you add afterwards. Therefore, $400 should be 2.70, $500 should be 3.60, etc. Not anything to do with UPS stores, or people shipping items with less than $100 declared value.
  9. oldngray

    oldngray nowhere special

    yes, the first 100 should always be free but UPS was charging it anyway. I am pretty sure I had a customer who used UPS shipping software several years ago that had the same problem and it supposedly fixed.