Major financial companies agree to go for settlement

In a major settlement of its kind, major financial companies have agreed to go for settlement. Some of them includes Visa, MasterCard, Diners Club, seven major banks, and affiliated companies.

Under the proposal, payments would be available to anyone who used a Visa-, MasterCard- or Diners Club-branded credit, charge or debit/ATM to make foreign transactions while traveling abroad or over the Internet from Feb. 1, 1996 to Nov. 8, 2006. Covered transactions include purchases, cash advances, and cash withdrawals.

To participate, you must file a claim form by May 30. The claim form allows participants to opt for one of three types of refunds:
• Easy refund of $25. This option is recommended for those who traveled outside the U.S. for less than one week or had foreign transactions of less than $2,500 using the affected cards.
• A refund of up to 1 percent of estimated transactions. Based on typical spending during foreign travel and your answers to a few questions, this is recommended for those who traveled outside the U.S. for more than one week or had foreign transactions of more than $2,500.
• A refund of up to 1 to 3 percent of annual estimated foreign transactions. This option is recommended for those who had extensive foreign transactions and who can provide year-by-year information.

Under the proposal, the defendants would pay $336 million to pay claims, attorneys’ fees and expenses. The proposal also would require them to make certain disclosures to cardholders about the rates used to calculate the U.S. dollar amount owed for a foreign transaction and any fees applied in connection with a foreign transaction.

Source: ConsumerReports.org

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