Refund on foreigh transactions. Is this a scam?

Question

My neighbor and I both received letters from U.S. District Court Settlement Administrator, Philadelphia. It states that we are eligible to receive a refund on credit card foreign transactions made between 1996 and 2006. Indeed we both traveled out of country during that time. Another neighbor who did not get the letter, did not travel out of country, which makes me think the letter might be legit. There are three options for refund. 1.) a flat $25 refund, 2.) a total estimated refund, and 3.) an annual estimated refund.

Three forms are included, one for each kind of refund. No personal information is requested at this time but sooner or later I suspect Credit card #'s will be requested, which I'm not about to give.. Yet this could be legitimate... What worries me is "The Settlement Administrator will estimate a fee refund [for Option 2] using your responses to a few simple questions and available information that can be accessed by computer." It sounds bogus... It it?

Answer 1

This is actually a legitimate class action suit settlement with Visa and Mastercard relative to exchange rate fees charged without disclosure to customers for charges in foreign countries during the 1996 to 2006 time period. It was sent to all holders of Visa and Mastercard credit cards during that time period who had any foreign charges. The "estimate" on the fee refund for Option 2 is based on the number of days you were out of the country and the "average" spent by travelers abroad on a weekly basis (it appears as though it will be approximately $25 for each week out of the country, although if too many claims come in under Option 2, I suspect the amount will be lower. I have seen the claim form (it was sent to me as well) and I looked up the case. It is legitimate and you should consider sending it in if you traveled out of the country during that time period.

Answer 2

Actually, it may be legit. There was a class action lawsuit against credit card companies for the methods by which they computed foreign transactions. Here's the website on the settlement, take a look at the FAQ and attachments: http://www.ccfsettlement.com/

Compare the information in the letter you received with the information on the website. It isn't uncommon for unscrupulous parties to take advantage of these situations -- for example, the government authorized free credit reports (through a single government-authorized site), and all these other websites sprung up using language to make it sound like they're part of that program when they're not.

(added) Just got mine in the mail today - it's legit.

Answer 3

I got the same thing - and I to traveled outside of country during the stated time frame.
There was a class action suit about the way foreign charges were applied to the cards - so I believe it is legit, but I haven't yet had the opportunity to ask my attorney. (It's $25 bucks....lol by the time I ask my attorney I would be in the holed $200!)

Answer 4

Legit. It's a result of a class action settlement or proposed settlement. To obtain anything above the base refund you'll have to submit evidence that you charged some fairly large amounts. Even then individual amounts may be pro-rated out of the total, so don't change your lifestyle.

Answer 5

Call your local Better Business Bureau and ask if they know anything about it.

Check the web site for your credit card carrier and see if they have news of a settlement.

If this came from a U.S. District Court, there SHOULD be a case number. Google-search for that case number. ("Court" AND "the number")