School Lunch Payment Processor Hit With Junk Fee Class Action

PAMS Lunch Room LLC charges students participating in school lunch programs junk fees totaling $100 million dollars that parents could have used to buy their kids food or to cover other expenses, a proposed class action alleged.

“Unfortunately, bullies still steal lunch money in American schools to this day,” the complaint filed Wednesday in the US District Court for the District of New Jersey said. “Over the past decade, the bullies have become more sophisticated, and evolved into payment processing companies” like PAMS Lunch Room, which does business as PayPAMS, the complaint added.

Payment processors like PayPAMS provide platforms that ...