Global credit card brands Visa and Mastercard have reached a settlement with plaintiffs in a class action lawsuit, agreeing to pay a total of $197.5 million to resolve allegations related to alleged illegal surcharges on transactions made at ATM machines.
The settlement was celebrated by plaintiffs’ attorneys as financial relief, not only for affected cardholders, but also for entities whose ATM access fees were not refunded to various banks between October 2007 and July 2024.
Visa and Mastercard Agree to a Million-Dollar Settlement for Improper Fees
The plaintiffs in this multimillion-dollar class action lawsuit argued that banks, along with ATM networks, conspired to charge illegal surcharges on ATM transactions.
According to the text of the lawsuit, this was a violation of the United States federal antitrust laws, and involves banks such as JPMorgan Chase, Wells Fargo and Bank of America. These banking entities had already shortened a total of $67 million with plaintiffs in another previous lawsuit.
How Much Will Visa and Mastercard Pay in This Class Action Lawsuit?
With this new agreement, Visa agrees to contribute $104.67 million, while Mastercard will contribute $92.82 million to form a common fund for members of the class action lawsuit. The purpose is to compensate those affected by ATM usage surcharges throughout the period in question.
Those involved, and who prove they were affected, can receive a payment based on the late fees they paid during the time frame mentioned in the class action lawsuit. Although it is known exactly how much the total amount of the claim is, it is not yet known when each approved claimant will receive it, because it depends on how many people are included in total and how much the costs will be deductible from the fund for legal costs and fees.
Class members who have experienced additional charges since their initial claim will have the opportunity to submit a new form to include these most recent charges. On the other hand, the deadline for exclusion and objection is set for November 22, 2024, which allows those affected time to decide their participation.
To be eligible, the impact must be demonstrated through ATM receipts and electronic records that prove that the aforementioned surcharges have been collected. Remember that a claim is filed under penalty of perjury, which means lying is a crime and can lead to criminal charges. If you’re not sure if you qualify, read the FAQ section of the Settlement Administrator’s website to make sure you meet all the standards here.
Visa and Mastercard Class Action Lawsuit Dates
- The deadline for exclusion and objection is November 22, 2024.
- The final approval hearing has been set for January 23, 2025, at which time final approval is expected to be given.
- To receive benefits from this class settlement, class members must submit a valid claim by January 22, 2025.
