Proof that credit card companies overcharge travelers

Over 20 million travelers will be getting early gifts delivered by the post office this holiday season: an announcement from a New York federal court about the possibility of refunds for some of the foreign currency exchange fees they paid while using a Diners Club, MasterCard or Visa ATM, credit or debit card between Feb 1, 1996, and Nov. 8, 2006.

Travelers who claim the benefit can expect a minimum payment of $25, which covers all cards a consumer used during the 10-year period.

The money returned are part of a class-action lawsuit that contends the card companies and seven issuing banks (Bank of America, Bank One/First USA, Chase, Citibank, HSBC/Household, MBNA and Washington Mutual/Providian) overcharged customers and neglected to disclose their foreign transaction fees.

Typical fees range from 1% to 3% of purchases made outside the USA, and also apply to Internet purchases made in another currency.

A $336 million settlement in the case was declared publicly in July 2006 and preliminarily given the go ahead by a court in November 2006. Final approval will be carefully weighed at a hearing on March 31, 2008, and cardholders must apply by May 30 of next year for refunds.

The defendants would not admit wrongdoing but said they settled to stay clear from the expense and uncertainty of litigation.

For more information on submitting a claim, visit ccfsettlement.com or call 800-945-9890.

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