This week doxo, a Fintech providing bill-paying services, railed against a lawsuit filed by the U.S Federal Trade Commission, saying the complaint “indicates a fundamental misunderstanding of the existing bill-pay market and the structural inefficiencies that work against consumers.”
In a release, doxo said the Federal Trade Commission’s allegations reflect “a lack of understanding and disregard for doxo’s services, how bill payments are processed and delivered to billers, and doxo’s continued due diligence in meeting and exceeding regulations and market standards.”
doxo said the Federal Trade Commission’s suit ignores the regulatory measures it currently adheres to and the overall need for innovation in the bill-pay market, adding the agency’s rationale “demonstrates a gross misinterpretation of the current market structure.” The company suggests the lawsuit will hurt consumer power in a market desperately in need of it.
“The bill-pay market, as it currently exists, is a tedious, high-friction, and extremely fragmented experience for consumers,” doxo said in a statement. “This unnecessary complexity in managing and staying on top of bills contributes to huge expenses for U.S. households – more than $24 billion in late fees and another $10 billion in overdraft fees every year.
“The market structure today falls short in serving the interest of consumers and is in desperate need of new alternatives and innovation, a necessity that this lawsuit by the Federal Trade Commission overlooks.”
doxo said it was founded to provide a single standard checkout to pay more than 100,000 billers across the country, allowing every bill to be paid consistently, with a single login, and without ever needing to share sensitive payment account data with any individual biller. To date, more than 10 million people have paid bills through the company’s platform.
“Simplifying the consumer experience in this way brings cost savings, and financial health benefits to consumers and billers alike,” doxo said. “This legal action could fundamentally impact consumers’ ability to have ease and access to multitudes of frictionless bill paying, at their convenience.”
“This is a misguided action by the FTC that fails to understand the current bill-pay market structure, the payment networks and processes used in this market, and doxo’s business practices,” said CEO and co-founder Steve Shivers. “For more than 14 years, doxo’s all-in-one bill pay has radically simplified the bill pay experience by empowering consumers to organize and pay any household bill, on any device, through a standard and secure checkout. We provide a great consumer experience, evidenced by our high repeat usage rates, strong reviews, and excellent customer satisfaction scores. We look forward to fighting this battle on behalf of consumers and billers and continuing to bring innovation and transparency to this market.”
doxo alleges this suit hinders market competition and innovation that is necessary for this industry to advance.
“We are disappointed in the FTC’s decision to file this suit,” said legal counsel Courtland Reichman of Reichman Jorgensen Lehman & Feldberg LLP. “The case ignores the fact that doxo meets and exceeds regulatory requirements and market standards as they empower consumers and foster innovation in the marketplace.”
“Despite doxo proactively addressing the FTC’s concerns, they filed a sensationalist lawsuit anyway. I’m confident that we will prevail as we fight this case on behalf of consumers and their interests, and (our) services will continue to be a beneficial addition to consumers and market competition.”
