$1,797 Direct Payment Declared for Visa and Mastercard Holders – Now, the good news for the users of Visa and Master debit cards: under a class action suit in the US, $197 million (which translates to about ₹1,650 crores) has been declared as a settlement against these two companies for illegally charging ATM fees for the last 17 years. This decision could benefit millions of people as they could receive a direct payment that could be anywhere up to $1,797 (around ₹1.5 lakh). Let us understand more about this case, who it applies under its scope, and how to apply for this claim.
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The full settlement
| Fact | Details |
|---|---|
| Settlement Amount | $197 Million (Approx. ₹1,650 Crore) |
| Maximum Payment | $1,797 Per Person |
| Eligibility Period | October 1, 2007 to July 26, 2024 |
| Claim Deadline | January 22, 2025 |
| Affected Banks | JPMorgan Chase, Wells Fargo, Bank of America |
| More Information | atmclassaction.com |
What is this case about?
This was a class action case under which allegations were made against Visa and Mastercard and some major US banks for charging undue fees to a consumer on the cash withdrawal from ATMs. When a consumer had to use an ATM belonging to a bank other than his/her bank, use of that ATM attracted the extra charge under the name of “surcharge fee”. Such a fee had been determined by the non-competitive method, harming customers.
How were the fees being collected?
The consumers were charged surcharge fees on ATM withdrawals from the Visa and Mastercard networks between 2007 and 2024.
Smaller banks were prevented by the companies from lowering the charges.
A limited option trapped consumers into higher charges.
How was the settlement, and what will the consumers get?
After a long stretch of 17 years for litigation, finally, the companies agreed to create a settlement fund of $197 million, the purpose of which is to be paid back to all consumers who were making payments on illegal fees. Each eligible consumer can be rewarded with a maximum amount of $1,797. However, the amount will depend on how many people claimed this and how much fees they paid.
Who can claim?
The criteria for eligibility include:
- You used a Visa or Mastercard debit card to withdraw cash through an ATM during the period from October 1, 2007, until July 26, 2024.
- The ATM must belong to JPMorgan Chase, Wells Fargo, or Bank of America.
- You should have been charged a surcharge or ATM fee for that transaction.
How to file a claim?
If you think you qualify, follow these steps:
- Visit the settlement website, ATMClassAction.com
- Fill out the claim form: Apply online on the website or download and mail the form.
- Input all the required info: Fill out your full name, address, contact details, and card details.
- Attach Documents: If required, provide bank statements, receipts, or account summaries.
- File before the deadline: No claims will be accepted after January 22, 2025.
Why ATM fees are termed illegal?
The key points that came out in the case are as follows:
- Visa and Mastercard restrained competition by monopolizing markets
- Customers were charged hefty fees, a violation of their rights.
- Lack of transparency within the banking system was brought to light.
What happens next?
Claim review process: All claims will be reviewed, and payments made to all those who are eligible for the claims.
Important dates:
- Deadline for claims: January 22, 2025
- Last hearing: January 24, 2025
- Payment release expected: First half of 2025
Wide repercussion of the case Consumer Rights Victory: “This case reaffirms that consumers should know their rights.” Making banks accountable: “Even the largest banks can be held accountable.” Better regulation in the next generation of banks. Controlled increase in bank charges and customer-centric policies would be expected to emerge.
Conclusion
This represents great news because if you withdrew money through a bank ATM with your Visa or Mastercard debit card in the last 17 years and were charged extra fees, then this opportunity is for you. Claiming this will only take a few easy steps, leaving you with up to $1,797. However, the last day to apply should not be forgotten: January 22, 2025, so act fast.
FAQs
Q1. Can I still file a claim?
A. Yes, you can file a claim until January 22, 2025.
Q2. How much money will I get?
A. You could get up to $1,797, but this will depend on the total number of claims.
Q3. What documents are required?
A. Not for every claim, but you may need to provide a bank statement or receipt if asked for.