Cash advance fees charged to your Visa Desjardins credit card

3.4 million settlement

A settlement has been reached in a class action brought by Option consommateurs and Mr. Jean-François Tremblay against several financial institutions, including Desjardins, concerning cash advance fees charged on VISA Desjardins credit cards.

On September 16, 2011, this by-law was approved by the Honourable Justice Gascon.

If you are a VISA Desjardins cardholder, this regulation may affect your rights whether or not you take action.

Please read this notice carefully :

BASIC INFORMATION

Why was this notice published?

The purpose of this notice is to inform you thatOption consommateurs, Mr. Jean-François Tremblay and Desjardins have agreed to a settlement putting an end to the class action. The class representatives and their lawyers believe that the settlement is the best solution for the class, and will be asking the Superior Court of Quebec to approve it.

The Superior Court will hold a hearing to decide whether to approve the settlement. You can attend the hearing on August 24, 2011 at 9:30 a.m. in room 2.08 of the Montreal courthouse, located at 1 Notre-Dame Street East in Montreal.

What is the purpose of this class action?

Prior to April 1, 2007, Desjardins charged group members a fixed fee for certain cash advance transactions made with their VISA Desjardins card. Since then, Desjardins no longer charges cash advance fees.

According to Option consommateurs, charging these cash advance fees contravened the Consumer Protection Act. Desjardins disputes this claim.

Who's in the group?

You are a member of the group if you meet all the following conditions:

1. If you are an individual
2. If you had a VISA Desjardins credit card between October 4, 2001 and September 30, 2010 under a contract concluded in Quebec
3. If you made a cash advance transaction with your card in Canada or abroad between October 4, 2001 and April 1, 2007;
4. If this cash advance was not made for a trade or business
5. If you have paid cash advance fees

SUMMARY OF REGULATIONS

What are the regulations?

With no admission of liability, in order to buy peace and avoid the additional costs and expenses associated with a potential trial, Desjardins agrees to pay $3.4 million in full settlement of the claims of group members who made a cash advance in Canada or abroad with their VISA Desjardins-issued credit card and were billed for cash advance fees.

How will the $3.4 million be distributed?

After deductingOption consommateurs 's legal fees ($850,000) and an amount to be paid to the Fonds d'aide aux recours collectifs ($240,480), the balance of the $3.4 million paid by Desjardins will be distributed as follows:

• 2,039,520 to directly compensate group members
• 225,000 to indirectly compensate group members; this amount will be shared between Option consommateurs and 29 other non-profit organizations to help fund their consumer education activities on budgeting, credit and debt.
• 25,000 to Option consommateurs to reimburse its costs incurred in initiating and conducting the class action and providing information to class members
• 20,000 to cover the cost of publishing notices to members

Am I eligible for compensation?

The indemnity will be paid directly into the account of each member of the group holding a VISA Desjardins account opened on June 8, 2011 and having carried out, between that date and the date of payment of the indemnity, an Eligible Transaction, i.e. a VISA Desjardins credit card account transaction justifying the issuance of an account statement.

If you qualify, you don't need to take any steps to receive compensation.

EXCLUDE YOURSELF

If you don't want to be bound by this settlement for any reason, or think you can get more money by suing yourself, then you should take steps to exclude yourself from the group.

What happens if I exclude myself?

If you exclude yourself :

1. You will not receive any compensation
2. You will not be bound by the class action
3. You retain the right to sue Desjardins yourself
4. You won't be able to object to this regulation

What happens if I don't exclude myself?

If you don't exclude yourself :

1. You will receive compensation directly to your VISA Desjardins credit card account if you qualify.
2. You will be bound by the class action
3. You waive the right to sue Desjardins yourself
4. You can object to the regulation

If you do not opt out and the settlement is approved, you waive your right to sue Desjardins for any charges billed to you and paid by you as a result of a cash advance.

How can I exclude myself?

To exclude yourself, you must send the clerk of the Superior Court of Québec a duly signed exclusion request containing the following information:

1. Class action file number: 500-06-000373-064
2. Your name and contact details
3. Your credit card account number in effect at the time you were charged the cash advance fee
4. A declaration that you paid cash advance fees between October 4, 2001 and March 31, 2007

Requests for exclusion must be sent by registered or certified mail before August 19, 2011 to the following address:

Quebec Superior Court Registry

MONTREAL COURTHOUSE

1 Notre-Dame Street East

Office 1.120

Montréal (Québec) H2Y 1B5

Catalogue number: 500-06-000373-064

OBJECT TO THE REGULATION

You can tell the court that you don't agree with this settlement.

How can I tell the court that I don't agree with this settlement?

To present your objection in court, you must attend the hearing on August 24, 2011 at 9:30 a.m. in room 2.08 of the Montreal courthouse, located at 1 Notre-Dame Street East in Montreal.

Although it is not mandatory, we also suggest that you complete and submit the settlement objection form.

Be sure to explain why you don't agree with this rule.

Do I need a lawyer to object?

No. You can object without a lawyer. If you wish to be represented by a lawyer, you may retain his or her services at your own expense.

If I object, will I still be eligible for a payment?

Yes. If you file an objection, but the settlement is approved anyway, you can still get a payment if you qualify.

MORE INFORMATION

How can I get more information?

We invite you to consult the following documents:

Watch out!

No other notice will be published or broadcast in connection with the settlement.