Cardholding travelers to get refund

Lawsuit alleged hidden credit fees

If you traveled abroad during the past decade and made purchases with a credit or debit card, you're probably eligible for a refund of $25 or more.

The refund is the result of a class action lawsuit filed against Visa, MasterCard and the Diners Club. The lawsuit accused them, and a number of large banks that controlled the card companies' operations when the case was filed, of conspiring to conceal fees charged for foreign transactions.

Notices to individuals who could benefit from the settlement were mailed out in November.

HOW MANY PEOPLE ARE ELIGIBLE FOR REFUNDS? Tens of millions.

AM I ELIGIBLE FOR A REFUND? Eligibility is limited to Visa, MasterCard and Diners Club cardholders that used their plastic for transactions -- such as purchases and ATM withdrawals -- in foreign countries between Feb. 1, 1996 and Nov. 8, 2006.

WHAT IF I DIDN'T RECEIVE A NOTICE? You can obtain one by calling (800) 945-9890 or going online at www.ccfsettlement.com.

WHAT'S THE ISSUE? The lawsuit contended the defendants conspired to set and hide fees on converting foreign currency to dollars. The suit argued the amount of the fees charged by the card companies and the banks-- up to 3 percent of each foreign transaction -- and the alleged failure to disclose them violated federal and state law.

The card companies and banks charged the fee for all foreign transactions even though "most of this 'foreign exchange' is illusory," the lawsuit argues. For example, if 100 cardholders in France charge the equivalent of $10,000 in euros during a given day, and French holders of the same card spend $10,000 in the United States on the same day, the card company doesn't convert any currency.

HOW BIG IS THE SETTLEMENT? The defendants agreed to pay $336 million. The money will be used to pay claims, attorneys' fees and expenses, and the cost of managing the settlement.

The defendants deny they did anything wrong.

HAVE THE CARD COMPANIES CHANGED THEIR POLICIES? Card companies and banks are disclosing the fees they charge. Some banks have reduced their fees as well, so it pays to shop around for a card if your travels take you outside the country.

WHAT ARE MY REFUND OPTIONS? If you're eligible for a refund, you can opt to receive $25. This option is suggested if you traveled overseas for less than one week or charged less than $2,500 outside the country during the 10-year period.

No documents are required -- just a signature asserting that you traveled outside the country, a credit card number and the name of the bank that issued the card. You can apply for one refund only, no matter how many cards you used.

Another option is a "Total Estimation Refund." This will amount to up to 1 percent of estimated foreign purchases, and will be calculated for you based on typical spending outside the country. This is recommended if you traveled abroad for more than one week or had foreign credit card purchases and other transactions of more than $2,500. You need to estimate the total number of days spent outside the country and answer a few questions about how much of the travel was vacation, business-related and for visiting friends or relatives.

The third and final refund option is based on your year-by-year estimates of foreign purchases, which is recommended if you traveled extensively overseas. Refunds will range from 1 percent to 3 percent of foreign transaction, depending on the bank that issued the card and when the purchases were made.

"If you traveled abroad several times a year for 10 years, you could have a claim potentially of hundreds or thousands of dollars," said attorney Merrill G. Davidoff of Berger & Montague, a Philadelphia law firm that is co-lead counsel for the plaintiffs.

You don't need to attach documents supporting your claim, but you may be asked to provide them later.

The deadline for filing refund claims is May 30.

WHAT IS THE STATUS OF THE CASE? The court has granted preliminary approval of the settlement. A hearing for final approval is set for March 31.

WHERE CAN I GET MORE INFORMATION? www.ccfsettlement.com or (800) 945-9890.