Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Update:
- In a Dec. 6 memorandum and recommendation, a U.S. magistrate judge in North Carolina recommended Bank of America’s attempt to dismiss a lawsuit over its exchange rates for foreign currencies be denied.
- Bank of America claimed plaintiffs Maureen Young and Rachelle Blake failed to give enough specifics on what transactions and rates were specifically charged outside of the promised wholesale exchange rates.
- The proposed class includes current and former Bank of America credit, debit and prepaid card owners who use the Visa and Mastercard payment networks.
(July 12, 2021)
A pair of class action lawsuits accusing Bank of America and Capital One of charging illegal foreign transaction fees to maximize their profits at their cardholders’ expense were filed on Friday.
A handful of consumers have lodged a nationwide class action lawsuit in North Carolina federal court against Bank of America. They claim that the bank inflates the costs for credit card holders engaging in a financial transaction, translating into higher interest payments and larger fees.
Similarly, Capital One faces a nationwide class action lawsuit filed by four plaintiffs in Virginia federal court. They allege that Capital One manipulates transactions made in foreign currencies to maximize the interest and fees paid by the card holder.
A foreign transaction fee is a charge on every debit or credit card transaction someone makes while traveling in a foreign country. These fees are a small percentage of the transaction — typically less than 3 percent — but they can add up quickly.
While foreign transaction fees are mostly associated with traveling abroad, in certain circumstances they may also be charged on domestic purchases mode online through a merchant not based in the United States.
These fees represent the cost of exchanging currency across borders, explain the foreign transaction fee class action lawsuits. However, Bank of America and Capital One have been artificially inflating these fees such that they are not representative of the actual cost of exchanging currency, claim the plaintiffs.
“Instead, the Processors and Capital One are engaged in arbitrage: they set rates to maximize profits—and do so without regard to the terms of the contracts that they imposed on card members,” claim the lawsuits.
The plaintiffs in the recently filed class action lawsuits accuse Bank of America and Capital One of violating the terms of their credit card user agreements when they applied the exchange rate and fees to their foreign transactions. They say the excessive foreign transaction fees violate state consumer protection laws, in addition to the cardmember contracts.
The class action lawsuits each seek to represent those who used Visa or MasterCard credit cards issued through Bank of America or Capital One nationwide, along with several state subclasses. The plaintiffs want to stop the banks from continuing to charge the excessive and allegedly illegal foreign transaction fees and also recoup damages, lawyer fees and court costs.
Have you paid excessive foreign transaction fees to Capital One or Bank of America? We want to hear from you! Tell us what happened in the comment section below.
The plaintiffs in the Bank of America lawsuit are represented by Daniel K. Bryson and Patrick M. Wallace of Milberg Coleman Bryson Phillips Grossman PLLC, and Eric L. Cramer and E. Michelle Drake of Berger Montague PC.
The Bank of America foreign transaction fees class action lawsuit is Guerrero, et al. v. Bank of America NA, Case No. 3:21-cv-00333-RJC-DSC, in the U.S. District Court for the Western District of North Carolina, Charlotte Division.
The plaintiffs in the Capitol One lawsuit are represented by Kristi C. Kelly of Kelly Guzzo PLC and Eric L. Cramer and E. Michelle Drake of Berger Montague PC.
The Capital One foreign transaction fees class action lawsuit is Wright, et al. v. Capital One Bank (USA), N.A., et al., Case No. 1:21-cv-00803, in the U.S. District Court for the Eastern District of Virginia.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
- Pioneer Bank class action alleges company improperly assesses overdraft fees
- CFPB issues Bank of America $12M fine over alleged false mortgage applicant information
- Wells Fargo to pay $35M to settle claims it wrongfully charged advisory fees
- Apple Federal Credit Union charges inappropriate overdraft fees, class action alleges
13 thoughts onJudge recommends Bank of America dismissal bid in forex lawsuit be denied
This is Bank of America “nickel-and diming” its customers into charging a foreign transaction fee for domestic purchases in US dollars! How is the consumer supposed to know these merchants are foreign-based? There is nothing in the purchase slip that states the merchant is foreign-based. Products are shipping from domestic sources, too. BOA is doing this to increase its bottom line – and could case less about it’s customers – hoping they do not notice! I, too, would like to add my name to this class-action suit.
Please add me
I have a few Bank of America credit cards