This proposed class action alleges that Visa, MasterCard and a number of large credit card – issuing banks have participated in a conspiracy to increase or maintain the fees paid by merchants on every credit card transaction.
Class action lawsuits were commenced in British Columbia (the “BC Action”), Alberta, Saskatchewan, Quebec and Ontario (collectively, the “Credit Card Class Actions”).
Visa and MasterCard, along with the card-issuing bank and the company that processes the payment, take a percentage fee each time a customer pays with a credit card. The claim alleges that Visa and MasterCard rules force merchants to accept every Visa or MasterCard credit card, even if those cards carry high fees for the merchant. The claim also alleges that these rules prevent merchants from charging more for payments with premium cards that carry a higher fee. As a result, merchants are forced to raise prices for all customers to cover the extra cost of transactions with premium cards.
The action seeks to recover the fees that Visa, MasterCard, and the banks are alleged to have collected illegally from merchants.
The BC Action was certified as a class proceeding as against all defendants except for the Fédération des caisses Desjardins du Québec (“Desjardins”).
The plaintiffs have reached a national settlement agreement with the defendant Desjardins (the “Desjardins Settlement”). Under the terms of the settlement agreement, Desjardins will pay CAD $9,900,000 (the “Settlement Amount”) for the benefit of the Settlement Class Members. The Desjardins Settlement is, subject to approval of the courts in British Columbia, Alberta, Saskatchewan, Quebec and Ontario (the “Courts”).
If the Desjardins Settlement is approved, Class Counsel will ask the Courts to approve the deduction of certain amounts (collectively, the “Court-Approved Expenses”) from the Settlement Amount, including costs incurred to distribute the Notice and process opt-out requests, comments and objections, a counsel fee of up to 25% of the recovered amounts, and disbursements.
For more information please contact Sharon Wong, Paralegal at (604) 689-7555 or by email at firstname.lastname@example.org. We also encourage you to go to the official website for this Credit Card Class Action at creditcardsettlements.ca.
Visa / Mastercard – Desjardins Settlement - View
BC Court of Appeal Reasons – August 19, 2015 - View
Visa / Mastercard – Certification of BC Action - View
Visa / Mastercard – Public Reasons for Judgment released March 27, 2014 - View
Visa / Mastercard - View