The Shrinking Pot? | Travel Guide For Your Finances

by Luke December 22, 2007

Topic(s): Credit Cards,Features,Foreign Transaction Fees,Lawsuits

Shrinking Pot Last week USA Today reporter Laura Bly published an article about the Currency Conversion Fee (CCF) Settlement. The article, titled “Refunds on the way for many overseas travelers,” is definitely worth a read — not only because yours truly is quoted, but because she has asked a lot of probing questions and uncovered more details about the CCF Settlement. Particularly, she has answers for what happens if the settlement fund runs out of money to pay full refunds to all those who requested one:

If claims outstrip available money, payments will be trimmed on a pro-rated basis. Claims of more than $225 would be cut first by up to 50%, to a minimum of $225. Next, claims from $25.01 to $225 would be reduced by up to 50%, to a $25 minimum.

The possibility of diminished settlement scenarios are, if not surprising, at least disappointing. I was quoted in the article as acknowledging that “you could have bought a bottle of Canadian maple syrup online and still be eligible for a $25 refund.” But the new information also means that many credit card users may well have (regretfully — if not unwittingly) spent much more in foreign transaction fees than they will ever receive back.

Consumers should bear in mind that this is a lawsuit settlement rather than a “win.” The credit card companies don’t acknowledge any wrongdoing. If you file a large claim, it’s worth remembering that the credit card companies aren’t being required to pay you back 100% of the amount you paid in foreign transaction fees. But if you file the “easy” form, it might be the case that they pay you more than you actually spent on foreign transaction fees.

Did you pay less than $25 in currency conversion fees during the settlement period? Will you file for $25 anyway?

Comments (4)

4 Comments to "The Shrinking Pot?"

on 22 Dec 2007 at 5:54 pm Posted by: Bob Steller

Never pass up the opportunity to take money from a lawyer. They offer you 25 bucks and you should take it especially if you paid less than 25 bucks. That is how the game works.
on 10 Jan 2008 at 3:11 pm Posted by: Mike

Roughly, what is the total transaction amount that would entitle you to more than $25? The point is that I have to decide whether to just take the $25 or to go through all my old records. Just a rough figure to within $500 or even $1,000 is all I need.
on 31 Jan 2008 at 10:32 am Posted by: slash

Of course you should take it since you paid less than 25 bucks. That’s how our life is now days.
on 22 Jun 2010 at 4:13 pm Posted by: f fu

Just returned from a trip from Hong Kong and China

In HK, all the charges are in HK $, thus avoiding the 3% Dynamic exchange fee. The only one that charge Dynamic exchange fee is Bank of China subsidiary that process Visa CC transactions.

In China, things gets really bad. Each time I ask to be charged in RMB, it came out to be in US$. After protest, it still come up with a statement saying that I was offer to reject the US$ option (which I did not). The bank say all I have to do is to cross out the option line and all the fine prints and I will be fine and will be in RMB. When I came home and check my statements, it all had the 3% Dynamic Exchange rated added onto my Schwab Credit card.

It is a big scam by Bank of China.. Be careful when you use credit card in China.

All my charges including Shangri-la are in US $ even I crossed out all the options in the US$ option, also wrote big sign as RMB. Is you want, I can eMail you the credit card slips.

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