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Currency Conversion Fee Antitrust Litigation (MDL 1409) Settlement
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Did you know that there was an anti-trust case brought against the major credit card issuers regarding foreign transaction fees? For those who aren’t aware of foreign transaction fees, these are fees that some card issues add onto a credit card charge made in a foreign currency. This fee can range anywhere from 1-3%, though some issuers will absorb the fees. These fees are not the cost of converting the currency, which is likely absorbed in the exchange rate used by the credit card company. Well, today these foreign transaction fees are often broken out and detailed on the credit card bill itself (sometimes as a mere asterisk indicating a x% fee was levied for this foreign transaction, sometimes an actual dollar amount) but this wasn’t always the case. In the past, card issuers wouldn’t even mention a transaction fee was levied and buyers would merely see a poor exchange rate.
But the fee itself wasn’t the problem, plaintiffs claimed that the Visa and MasterCard networks, their member banks, and Diners Club conspired to set the fees and conceal them from the public by inflating their exchange rates (essentially hiding the fee in the rate). Which cards are included?
Visa- and MasterCard-branded credit cards (including charge cards) and debit/ATM cards (including stored value and payroll cards), and Diners Club-branded credit cards (including charge cards). The Visa-branded cards include Visa-, Interlink-, and Plus-branded credit and debit/ATM cards; the MasterCard-branded cards include MasterCard-, Cirrus-, and Maestro-branded credit and debit/ATM cards. The lawsuit includes purchases, cash advances, cash withdrawals, and internet transactions.
So, the defendants have now elected to settle and set aside $336M to pay for it all. If you wish to participate in the settlement, what you’ll need to do is choose one of three options. The option you choose will depend on your level of international travel and how much you’ve spent in the years between 1996 and 2006.
- Refund Option 1: Request an Easy Refund of $25. This Option is recommended if you traveled outside of the U.S. for less than one week or had foreign transactions of less than $2,500 using your eligible cards during the 1996 to 2006 period. (Green Form); OR
- Refund Option 2: Request a Total Estimation Refund based on typical spending during travel and your answers to a few questions about your own travel outside of the U.S. This Option is recommended if you traveled outside of the U.S. for more than one week or had foreign transactions of more than $2,500 using your eligible cards during the 1996 to 2006 period. Refunds will be a maximum of 1% of estimated foreign transactions. (Blue Form); OR
- Refund Option 3: Request a refund based on information that you provide concerning your Annual Estimated foreign transactions during the 1996 to 2006 period. This Option is recommended if you had extensive foreign travel or foreign transactions and are willing to provide year-by-year information. Refunds will be a maximum of 1% to 3% of foreign transactions. This is the only Option you can use to get a refund for corporate card use. (Red Form)
I think I’ll probably do Option 1 or perhaps Option 2, since I’ve traveled internationally quite a bit to visit family in Taiwan and on vacations abroad. I have yet to review the claim form to see the level of rigor involved but it seems relatively straightforward.
The deadline to file this has been extended to May 30, 2008.
(Thanks Tim!)
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If you choose options 1 or 2, the form is very simple. However, had you traveled out of the country extensively over the last decade, option 3 will likely give you the biggest refund. I don’t travel internationally often, but over 10 years it added up.
Option # 3 is painful and is only possible if 1) you kept meticulous records (an advantage to those using personal finance software) or 2) if you have a lot of time to call and request records from your credit card companies.
My boyfriend went with Option 1 (he got the form in the mail but filled it out online) and it took him about 10 minutes.
FYI, even people who did not receive the form can share in the settlement by filling out the forms online. The forms are a little different for people who did not receive the mail (as far as I can tell); they basically require a little more verification.
I got the form in the mail and went with option two. All I had to do was visit the website, input my reference number from the mailing, verify my contact information, and put in the estimated number of days I spent abroad during those ten years (about 10 weeks total). I personally think this is stupid for the defense since for at least two of those weeks I was in France as a minor and was using strictly Amex travelers checks (no visa/mc fees incurred) and I doubt my credit card spending even comes close to what the typical spending is but whatever I’ll take the “bank error in my favor” card from this case. It pays to travel internationally!
For those filling out the forms and living up north, remember that Canada is still a foreign country
I just recevied those forms, but I have to check them online. Even though I am a road warrior, I use pretty much AMEX all the time. However, I have done quite few purchases within the last 10 years internationally, so I will go with option2.
Apparently for option 3, I might have to present so much back ups, and they are time consuming.
ccfsettlement.com instructs you NOT to contact your bank, but it also says that the banks will supply statements to support option 3 if the information is electronically available.
So how am I supposed to get my statements if I don’t contact the bank?
For Option 3: you can estimate your annual charges without providing documentation. I would do this without calling your bank for statements. Remember, you will normally be charged for historical statement copies. There is more than likely a trigger set for an audit. If your usage is reasonable, you probably will not hit the audit trigger. However, if you do get audited, you can always claim the fees charged by the banks (in this case, you will probably not get charged) in getting your statements. If you request the historic statements ahead of time, I doubt you will be getting them for free or be able to claim them. remember, you are giving lots of information that is verifiable without you providing statements (and in fact you are not required to provide statements or proof unless audited). The benefit of option 3 is that the credit cards varied in the foreign transaction fee percentage, so if you were being charged 3% the whole time for your card, and you file option 2, you are getting 2% less than what you paid and are entitled to get back.
I should caveat that even though you may file a claim, you might not be reimbursed because your credit card issuer, although a visa or mastercard, may not have hidden these fees. You can essentially figure out which card issuers this suit applies by looking at the list of defendants in the case (“Visa, MasterCard, Bank of America, Bank One/First USA, Chase, Citibank, Diners Club, HSBC/Household, MBNA and Washington Mutual/Providian, as well as certain affiliated and predecessor companies.”).
Visa and Mastercard charge 1%, while the bank issuer charges another 1-3% on top of that. This is why you see specific card issuers as well as generic Visa and Mastercard, and the reason why 1% is used as the base claim.
AMEX: There is a similar pending litigation against AMEX for the same kind of fees.
I got the form as well and am going with Option 2. I spent a great deal of time abroad during those years, and used my Mastercard regularly!
I got it too — will go with option 1. Easy and probably more than I deserve to get back.
Of course, the lawyers are getting 27%, plus whatever they got on the previous case, plus $5 million for their expenses. The credit card companies will get a chunk of the settlement back because many people who are entitled to a part of the settlement won’t file, and the court refuses to then distribute the remaining money among those who claimed it. All the while the court system will claim this is reasonable.
(I say this as a future lawyer, just in case you think I hate lawyers.)
Well, if lawyers didn’t exist then this would never have happened. Cynicism has it’s place and I don’t think this is one of those situations.
Now if you’re a doctor and complaining about ambulance chasers, that’s another issue.
Does anyone know of a credit card that does not charge foreign transaction fees?
jim, many people would have loved to take this case for less than $75+ million.
Early class action suits had much more reasonable fee structures and were still attractive to law firms. There were still big payouts for winning/settling difficult suits, but there was a connection between the hours their firms spent and the amount of fees awarded.
Does any of this relate to wire transfers out of accounts with one of the applicable banks?
Is this lawsuit safe? I realized we had to give some information, they won’t steal money from us right? this is not a scam right? how do you know if your information is safe?? please let me know I am worried don’t want them ripping me off or taking money out of my account or anything, I hope we’re protected against stuff like this, thanks take care everyone stay safe.
Well, the site is registered by Heffler, Radetich & Saitta LLP, 1515 Market Street, Suite 1700, Philadelphia, Pennsylvania 19102 which has a pretty robust website. The page that asks for your credit card number is encrypted (https) and they only ask for the number. They don’t ask for expiration date or the CVV. I think it’s safe but that’s for you to decide.
If you have a refernece number, they will not ask you to fill in your social security number and credit card number, right?
If so, then it is not a scam.
What is I have travelled abroad and never used my card?
Some of my friends got the same letter despirte the fact that they never used their cards abroad.
Thanks to all. I thought this was a scam.
This lawsuit sucks. Here’s what’s going to happen: the credit card companies pay the settlement then raise their rates a bit to maintain their profitability. Consumers end up paying for the settlement. Some of the money goes back to the consumers as a settlement. The rest goes to the lawyers. The net effect is that the consumers pay the lawyers $90M+
If your credit card is with Citibank you can go to Citi , register for on-line access to your account and then you car request PDF copies of your statements for free.
Copies of my statements have been available since I have had the Citibank credit cards (1993). Citibank allows you to request six at a time…they usually are available the next day to see and download. They are ‘stored’ on line for you to review for 7 or 8 days. I have been requesting 6 a day for about the past three weeks and almost have all my historical records completed.
Once you register to access your account on line to view statements and then click ‘request a PDF statement’. Good luck!
I had a bit more than 100 days overseas (mostly business) 1during the period of the claim, so I’ve really struggled with the issue of Option 2 vs Option 3 – How much effort do I really want to go through to get money that I didn’t even realize I was entitled to get? The issue was that Option 2 is based on some estimate of typical daily foreign transactions, but no info is given as to how this is calculated (or who calculates it).
From a bit of searching, I learned that the estimate is based on the Department of Commerce Annual Survey of International Air Travelers. I googled this term and found the following website: “http://tinet.ita.doc.gov/cat/f-2006-101-001.html.” Depending on whether you travel primarily for leisure or business, the ave. daily rate for 2006 is somewhere between $80 and $129 (the 1996 figures are about $10 below that [$71 - $120]). Obviously, its anyone’s guess as to exactly how they will apply these figures, but I was happy to at least find some ballpark figures to help me decide whether to go with Option 2 or Option 3. Hope this helps others, too!
I lived abroad from 94 to 99 and travelled extensively ever since. I am also struggling with Options 2 and 3. I think it would be a huge amount of work to get the statements…thoughts?
Since no one has commented on this I would like to reiterate that you can also file for a refund for any transactions you made using Visa and MasterCard-branded debit/ATM cards. I lived overseas for four years in the late nineties and the majority of my foreign transactions were made using my ATM card. However, you may be out of luck requesting bank statements from your bank before 2001. My bank, Citibank, keeps records going back for only seven years, before that all bank statement records (except credit card statements) are destroyed. Convenient for Citibank, no?
Furthermore, since ATM card numbers are usually automatically changed when you receive a new card every two or three years you may be again be out of luck if you didn’t keep the old ATM card. I still had my bank statements from those years, but the statements did not have the ATM card number on it. Using some old ATM receipts that I had kept for record keeping I was able to research the ATM card numbers I used for my transactions (too bad, Citibank!).
If you don’t have your ATM card number, they may reduce your refund. The settlement web site states: “If your claim is for a personal account and you do not have the account number (or if you choose not to provide it), you may provide the last 4 digits of your Social Security Number instead. However, your refund may be reduced if you do not provide your account number because the Settlement Administrator may not be able to verify the full amount of your refund.”
I attended the Fairness Hearing for this case (Currency Conversion Fee) today and objected to the settlement as unduly favoring the class lawyers’ interests over the class members’ interests. The claim calculation process was not adequately explained, and class counsel’s attorney fee is too high (25.5% of the $336 million settlement fund).
One thing that many people do not know is that Option 2 actually has a $25 minimum recovery (subject to pro-rating), just like Option 1 does. So there is no reason really for anyone to choose Option 1. Option 2 guarantees a return of at least as much as Option 1, and maybe more.
Could anybody explain what the difference is between “opting out” and ignoring the whole thing completely?
I submitted my data electronically … the response said it was ok and to print a copy … unfortunately my printer crashed and I was unable to retrieve the message … Any Idas how to get a copy ?
Well – last day and I am just now filing my claim – Option 3! Regarding the comment from March 14, 2008 about old DEBIt/ATM Card Numbers – I sent the official website a detailed question about my old, destroyed debit cards and not having the number, and this was there answer back to me. (Refers to “credit card” numbers, but my Q was specifically about debit cards.) My understanding is that it will be better to use my current debit card number and give the bank info, than to use last 4 SS# and get lesser refund:
SEE BELOW:
This is in response to your e-mail pertaining to the Currency Conversion Fee Antitrust Litigation.
If your credit card number changed and you still are with the same credit card company, you may use the current account number found on your card. Please retain any paperwork used as a basis for your claim.
If you have any additional questions, you may contact us in writing at the address found on the website, by e-mail through the contact section of our website at http://www.CCFSettlement.com or by telephone at 1-800-945-9890.
Sincerely,
Settlement Administrator
P. O. Box 290
Philadelphia, PA 19105-0290
I want to say thank you for supporting your verification for currency conversion fee antitrust litigation for protection claim. this is very important understanding process for long time wait. No rush.. be patient will be complete and correct to the best of my knowledge. Dane Stocker, Graduate School. Good luck soon!
I don’t think people should invest too much time or thought into filing their claim- my best guesstimate is that a typical Option 1 or 2 refund will be approx. $25.
If anyone has additional insights, please correct me if I am wrong- I hope I am.
Hi-
It’s been a year and a month since the deadline and I can’t seem to find any information on the progress of this. Most everything I have been able to find is from May 2008 and before. Does anyone know how long this will take?
Thanks!
Dave in Maine
So this is legit??? Not a credit collector from 1990 trying collect something I never owed????
I received just a letter, from Heffler, Radetich & Saitta L.L.P., stating if I did not respond in 45 days it would atomatically go to Option 1. I have had so many collecters contact me recently about accounts I don’t know anything about and more than 15-20 years ago???
Has anyone collected yet? This is the year 2010……….makes me wonder.
Not me, but I was curious too…
What has happened to this settlement? Does anyone have an answer?
You have to be a Philadelphia lawyer to navigate the stupid website and the court-ordered 1-800 # is a runaround recording.
Final approval of the settlement agreements on the appeals was issued 7/26/2010. As best I can figure, the cardholders are screwed. I think the lawyers and fund administrators get it all. But I’m not sure.
I want my bailout money back.
So if you do not have all recipts or bank statements that you have filed option 3 you will not beable to collect any of the monies I don’t think I have these and bank records are distroyed after 7 years? what are the options or What do I do? jan from wisconsin 53132
There has to be a lawyer out there who can tell what is happening. Can anyone put the current situation in plan English. Sure would appreciate someone’s helpfulness.
I would like to know what is happening.
Tom, I don’t see anything about something happening on 7/26/2010. You found this on the ccf website? Remember there are two different cases…
I have not heard anything from the CCFC settlement administrators. I have 100% of my records and during the period in question had > $100,000 in charges overseas on my AAdvantage Citicard due to working overseas the entire time. I submitted filing Option 3 which allows documenting all charges. I even sent a CD Rom with the details on spreadsheet. I have heard that there is no or very little left for the actual credit card holders, everything going to administrators and lawyers. Real shame what goes on in these cases, there oughta’ be a law.
Yeah! The whole thing was a waste of time. I put my claim through years ago. While I was doing all this headache promoting paperwork – making sure I was correct and honest in all things and getting mailed out in time and what happens? Nothing! They dawdled on this and whatever the people were to get has now been sucked up by greedy law concerns. While the banks screwed up big time – now the lawyers are screwing us royally – dragging it out – leaving us nothing. What a world!!!!!
In the “Settlements” case (not the coexisting “Arbitration” case) the max set for lawyers’ expenses (incl. court costs) is $8 million. The final settlement total has been set in judgement at $338 million. There has been no final judgement on payments, nor payments issued. There are APPEALS pending…so sit back and check-in quarterly. It’s still a long haul to go.
When will these appeals be OVER???? Its Jan 2011 already!
I only see the lawyers getting anything from this. Forget us common folks who were the ones actually screwed out of the money by these credit card companies. I lost a whole lot on this and have yet to receive as much as a penny even thought the lawyers have been getting paid the whole time.
It is sick that we have become “Of The Lawyers, By The Lawyers, and For The Lawyers” instead of “Of The People, By The People, For The People” as spoke by Abraham Lincoln November 19, 1863 when he gave the The Gettysburg Address.
Abraham Lincoln was a lawyer himself.
I just received a check for $18.04 woo hoo! LOL
I got one too – don’t even remember any paperwork on this?! So – is it a real $18.04 check and safe to cash? It has some verbage about opting out at the bottom.
thoughts?
Thanks,
Jimmy
I got a check today.
“All refund amounts are reduced because the full amount of all claims exceeds the amount in the settlement fund. See http://www.ccfsettlement.com or call 1-800-945-9890.”
I lived overseas during the entire time of the lawsuit window and the total was very disappointing. (under $100). I don’t remember which option I used, probably 2.
I just got a check for $18.00 .
That has to be between 5 and 9 times the currency fee charged me by the credit card company.
Much more than I deserve.
–I’m one of the little people.
My wife and I each received a check for $ 18.04 and neither one of us remember filling out a form. Maybe this was in litigation for many years.
Recieved a check today, 12/15/2011 $18.04
Drew on The Hungington National Bank.
Was curious about this check so I called the 1-888-567-5450 listened to the recording.
I looked at the website as listed..www.ccfsettlement.com it was just a posting.
Will cash the check, and post if it goes through without any hiccups.