US Credit Card Class Action Settlement
This is something of a public service announcement, to make sure that the news gets spread. There has been a settlement in a class action lawsuit against Visa, Mastercard, and Diner's Club. In short, they were accused of charging unfair fees on currency conversion transactions, including normal credit card purchases and ATM withdrawals. If you held a Visa, MasterCard, or Diners Club credit, charge or debit/ATM card issued in the United States as of November 8, 2006, you are covered by the class action and are eligible for part of the settlement.
The precise details are here:
http://www.ccfsettlement.com/
There are three main options for reimbursement, though it is likely that only the first two apply to most people. The first option is for people who were out of the country for less than a week total during the period from February 1, 1996 and November 8, 2006. If that is you, you can simply fill out the form and eventually (many months, possibly a couple years from now) a $25 check will show up in your mailbox.
However, if you traveled outside of the US for more than a week, you should use Option 2. Based on the way it is worded, it appears that they will likely be awarding something in the region of $25 per week that you were abroad. Given that huge period covered (over 10 years!), some of you (especially business travelers) may rack up very large numbers. I have personally gone through my various passports and show well over 100 weeks out of the country during that time. At the maximum of $25 per week, that is an entirely respectable check.
Given my legal background, I will happily answer any questions people have about this, but keep in mind I am limited in knowledge to the settlement form I personally received and the information on the website.
Answers to questions I expect to be asked:
Q: Am I covered?
A: Did you have a Visa, Mastercard, or Diner's Club card (issued by ANY bank or company) on or before November 8, 2006? Was that card issued in the US? If you answered yes to both, you are covered.
Q: I never left the country, does this apply to me?
A: Yes, you can use Option 1 and get the minimum of $25.
Q: I didn't receive anything in the mail, does this apply to me?
A: Yes, just click the "I do not have a Refund ID" link on the Claim Form page.
Q: I am covered and left the country, but did not use my US credit card for any transaction, does this apply to me?
A: Yes, Options 1 and 2 do not require anything more than that you are a covered class member and that you left the country. If you are a class member, you will be reimbursed for all dates you were outside the country.
Q: Why are you saying we will be paid $25 per week abroad under Option 2?
A: That appears to be the maximum amount we can receive based on their $2,500 and 1% citations. However, if you read through the details of the actual settlement documents, it is likely that you will be paid less than that. I have not found an exact copy of the "algorithm" they say they are using, so I cannot say for sure. Also, if the settlement fund ($336 million) is not large enough to pay all claimants, all rewards will be reduced across the board (to a minimum of $25) to ensure that everyone gets at least something. However, I still think this is very worthwhile.
Q: Why should I waste my time on this?
A: It won't take that much time at all and the money is yours by law. If you really don't care at all, spend the 2 minutes it will take to fill out Option 1 and get your $25. If you were out of the country for a very long time, it may take longer to figure out the information, but your payment could also be much higher.
Q: Can I just make up my answers for Options 2 and 3?
A: I would not advise this. The settlement provides for specific and random audits of various claims. If you submit fraudulent answers, you could get in trouble.
[edit] Questions received from various people:
Q: Are you sure about this? It says "Refunds will be a maximum of 1% of estimated foreign transactions." So unless you're estimating $2500 per week (easy living!) you're not going to get $25 per week.
A: The settlement uses an estimate of $2500 as the expenses for 1 week of travel abroad in Option 1. Therefore it is likely their ‘base’ value for option 2 as well. However, for Option 2 they aren’t actually calculating our award based on our monetary expenditure, they are calculating it based on the number of days we were abroad, times an “algorithm” that I cannot find. They define the “estimated foreign transactions” themselves, so I cannot say what this amount is. It may be in one of the (many) pdfs on that website, so perhaps someone can find it so we can know for sure. I agree that we’re not likely to get $25 per week under Option 2, but (assuming the fund isn’t maxed out) it will certainly be a decent sum. On my 100+ weeks, I cannot imagine receiving less than $500 ($5 per week), which is already worth an hour of my time to submit the application.
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Originally Posted by Odin
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