SURREY, B.C.–A credit union member here has filed a class action lawsuit over fees he was charged while traveling out of the country.
Eric Finkel filed the lawsuit after traveling in Cambodia in 2012 and 2013 and discovering something about the exchange rate that he alleges didn’t add up. A 2.3% difference in the amount he believes he should have been charged vs. the actual fee, which cost him an additional $11.42. Upon returning home he contacted his credit union, Coast Capital, seeking an explanation.
But Finkel alleges something about the CU’s response—that it was due to the exchange rate-- didn’t add up to him.
"The exchange rate used on ATM machines is calculated by the bank who owns the machine," Coast Capital responded in an email. The CU did not disclose there was a percentage surcharge on foreign currency withdrawals, in addition to a $5 fee.
Finkel, who works as a consumer advocate, has now decided to launch a class action lawsuit under a section of British Columbia’s Business Practices and Consumer Protection Act (BPCPA).
The lawsuit alleges the credit union’s charges were a breach of contract and a deceptive act or practice contrary to the BPCP Act.
A court Justice has approved the class action lawsuit.
According to local media reports, Coast Capital has denied committing any wrongs and has characterized Finkel's action as a "procedural weapon of mass destruction," adding that the case is devoid of an "air of reality."
Should Finkel win his case, personally he will receive only the surcharges assessed to him on the foreign exchange withdrawals. But so will anybody else who withdrew foreign currencies, which could be costly to Coast Capital, which is appealing the decision.