Class Action Suit Claims

Posted by: Henry B. | Jan 02,2008


Have you ever received one of those notices in the mail regarding a class action suit?  These are notices that go out to every cardholder of a specific card, saying they are eligible for a settlement due to a class action lawsuit.  For instance, a recent class-action suit against Visa, MasterCard, and Discover regarding repayment of foreign transaction fees while traveling.  It’s a form of retroactive payment for fees formerly incurred.  Who thought such a thing could happen?

In the age of Nigerian money scams and other forms of fraud, you might think that these claims are entirely illegitimate.  First off, they are not.  However—and this is a big however—there could come a time when these class action suit claims are indeed part of an identity theft scheme.  As of yet, I’m not aware that this has happened, but it’s something to keep an eye out for.  A class action claim should only need your credit card information, and not your Social Security number, so this should be a red flag if a class action claim is asking for a library of information.

Otherwise, these credit card action claims are entirely legitimate.  If you’re worried about fraud, then you might not think filing the claim is legitimate.  For most people, they’ll choose to get a flat fee payment – normally around $25.  In the above claim, you could choose another payment option: a claim based on the number of days or number of transactions you made overseas.  If you’re a world-traveling jet-setter, you may be liable for a lot more money, so it is entirely worthwhile to file a claim.  For most people, they’ll get their $25 check and call it a day. 

Is it worth it?  Up to you, but just realize that these claims are entirely legit.  What might seem like a minor payment to you is actually a huge sum when multiplied by every potential card user.  Credit card companies are banking on the fact that most people won’t bother filing the claim. 

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