Deadline Approaching To Apply For Credit Card Settlement Benefits

·2 min read

Business owners have until Sept. 30 to apply for compensation from multimillion-dollar class action lawsuit settlements involving a number of banks along with Visa and Mastercard. The class action began in 2010 and alleged that certain banks conspired with Visa and Mastercard to set higher interchange fees and impose restrictions limiting merchants’ ability to add surcharges or refuse Visa and Mastercard credit cards with higher associated fees.

The settlements were reached with Visa, Mastercard, Capital One, Citigroup, Bank of America, Desjardins, National Bank, CIBC, Royal Bank, Bank of Montreal, TD Bank, and Bank of Nova Scotia. While these settlements resolve the class action lawsuits, the listed defendants do not admit any wrongdoing or liability in these matters.

Altogether, the settlements amount to a grand total of $188 million. After payment of the Class Lawyers’ fees (30% of the recovered amounts) and court-approved expenses payable from the settlement amount, roughly $131 million is available to distribute to class members.

Any merchants who accepted payments through Visa or Mastercard credit cards in Canada from March 23, 2001, to September 2, 2021, are eligible to claim settlement benefits from this class action. Claims must be submitted by Sept. 30, 2022.

Businesses classified as small merchants (with less than $5 million in average annual revenue over the class period) can claim $30 per year during the stated period and do not require supporting documents. Merchants with over $5 million in average annual revenue over the class period have the opportunity to claim more significant amounts with specific supporting document requirements depending on the size of the company.

Visit www.creditcardsettlements.ca/ to file your settlement claim before Sept. 30 and for more detailed information about the class action settlements, distribution of settlement benefits, and the claims process.

Dean LaBerge, Local Journalism Initiative Reporter, Grizzly Gazette

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