credit cards currency conversion lawsuit

The currency conversion suit accused Mastercard, Visa, Diners Club and their partner banks of tacking on undisclosed currency exchange fees for every transaction -- and in some cases, inflating the base exchange rates.

The lawsuit claims the hidden fees generated more than $3.5 billion for the defendants, which included Bank of America, Bank One/First USA, Chase, Citibank, MBNA, HSBC/Household, and Washington Mutual/Providian.

The companies deny any wrongdoing, but agreed to settle out of court.

Who's eligible for a refund?

You're eligible for a refund if you traveled outside the United States between Feb. 1 1990 and Nov. 8, 2006 and made transactions with your credit or debit card. This applies to purchases, ATM withdrawals and cash advances. You're also eligible for a refund if you made Internet transactions in foreign currency during the same time period.

The settlement applies to all international transactions using Mastercard, VISA and Diners Club cards. If you fall into this category, you have until January 9, 2008 to file a claim.

Actual refunds will depend upon final approval by the court, and on the number of valid claims filed. Final approval is scheduled for Nov. 7 in New York. Plaintiff's attorney Bonny Sweeney of San Diego tells me the refunds could range from 1% to 3% of your total transactions -- or possibly more.

"It will depend on the number of claims, when you used the card, and which credit card you used because the fees were different at different times," Sweeney explained by telephone.

Staggered notification

First notification of the settlement went out last month as inserts in card holder's statements. Sweeney says stand-alone notices will be mailed in the next couple of months to cardholders who do not get a regular monthly statement. Additionally, Sweeney says public notices are planned for various travel publications and major national news publications, such as the Wall Street Journal and USA Today.

For more information:

ccf settlement In re Currency Conversion Fee Antitrust Litigation (MDL 1409)