Corpay and CEO Agree to Pay $100M Settlement with FTC Over Unauthorized Fees
Corpay (CPAY) and its CEO Ronald Clarke have agreed to pay $100 million to settle a Federal Trade Commission administrative action. The settlement stems from allegations that Corpay, formerly known as FleetCor, charged customers unauthorized fees without proper consent. The FTC filed the complaint in 2019, accusing the company of deceptive practices involving fee collection on customer accounts. As part of the resolution, neither the company nor Clarke admitted guilt but agreed to pay the fine and implement changes to prevent future violations. This settlement highlights regulatory scrutiny over financial services companies' billing practices and could influence investor sentiment toward Corpay's corporate governance and compliance measures.
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Topics: corporate_finance legal_settlements