doxo, a provider of simple, all-in-one bill
payment service, publicly responds to the Federal Trade
Commission's uninformed and overreaching suit.
SEATTLE, April 26,
2024 /PRNewswire/ -- Yesterday, the U.S Federal
Trade Commission filed a lawsuit against doxo, a company working to
deliver a better bill-paying experience for consumers and billers,
with a complaint that indicates a fundamental misunderstanding of
the existing bill-pay market and the structural inefficiencies that
work against consumers. 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.
The Federal Trade Commission has decided to file a suit that
lacks the awareness of the regulatory measures doxo currently
adheres to and the overall need for innovation in the bill-pay
market, a line of thinking that demonstrates a gross
misinterpretation of the current market structure. This lawsuit
serves to diminish the power of the consumer in a market in
desperate need of innovation and consumer-centered
improvements.
The bill-pay market, as it currently exists, is a tedious,
high-friction, and extremely fragmented experience for consumers.
This unnecessary complexity in managing and staying on top of bills
contributes to huge expenses for U.S. households – over
$24B in late fees and another
$10B 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 was founded to solve a simple and obvious problem – to
provide a single standard checkout to pay over 100,000
billers across the country, allowing every bill to be paid the
same way every time, with a single login, and without ever needing
to share sensitive payment account data with any individual
biller. To date, over ten million people have safely and
efficiently paid bills through doxo's unique model, which is built
around the consumer, allowing users to have flexibility in choosing
individual billers or bank accounts. Simplifying the consumer
experience in this way brings cost savings, and financial health
benefits to consumers and billers alike. 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
the CEO and co-founder of doxo, Steve
Shivers. "For over 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 provides fundamental innovations that are good and useful
for all individuals who pay bills on a regular basis, and offers
financial safeguards that individual biller's simply can't provide.
Consumers can enjoy the financial protections of a doxoPLUS
subscription which adds credit score monitoring and $1M of identity theft protection, and helps
eliminate overdraft and late fees. doxo further benefits consumers
by providing greater transparency to the bill-pay market – making
it easy to compare costs of bills for any location in the country,
and will continue to serve those who crave the ease of a single,
standard service for managing due dates and staying on top of
household bills. This suit hinders market competition and
innovation which is necessary for this industry to advance. These
concrete examples highlight ways in which the FTC has overreached
in its claims, countering consumer interest.
"We are disappointed in the FTC's decision to file this suit,"
said the legal counsel of doxo, 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 doxo's services will continue to be a beneficial addition to
consumers and market competition."
Learn more about doxo at doxo.com.
For an official statement from the company and an FAQ please
visit: https://www.doxo.com/w/company/statement/
About doxo
doxo delivers innovation that transforms the bill pay experience
for consumers, billers and financial technology providers. For over
10M consumers, doxo's all-in-one bill
pay makes it simple to organize and pay any bill on any device
through a secure checkout. For billers, doxo's network-driven
platform enables online and mobile payments with a ridiculously
simple integration, radically lower costs, and game-changing
features that are unavailable with legacy bill pay vendors. For
fintech partners, doxo delivers financial innovations to consumers
across 97% of US Zip Codes, paying from more than 5,000 financial
institutions to over 120,000 billers in 45+ service categories. For
employees, doxo is a creative, ever-learning team that is
passionate about building fintech tools that dramatically improve
the bill pay experience. To learn more about America's leading bill
pay network, visit doxo.com.
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SOURCE doxo