Yes, the ‘ATM surcharge class action settlement’ is real

It’s smart to be cautious about any email promising you money in exchange for your personal information.

That’s why several VERIFY viewers including Bob and Billie wrote to us to ask whether an email they recently received, promising sometimes hundreds of dollars from a class action settlement, was legitimate or a scam.

The email says “in the next few days, you will receive an email with a payment… for the ATM Surcharge Class Action Settlement” and says recipients can choose a variety of methods for receiving the money, including Venmo and direct deposit.

THE QUESTION

Is the “ATM Surcharge Class Action Settlement: Notice of Class Action Payment” email a real settlement payout?

THE SOURCES

• U.S. District Court for the District of Columbia

• AB Data

THE ANSWER

Yes, a class action settlement regarding ATM fees was reached with several banks in 2021, and received final court approval in August 2022. In March 2023, a judge approved a plan for AB Data to distribute payments to eligible recipients.

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WHAT WE FOUND

The lawsuit began more than a decade ago, alleging Visa, Mastercard, and several major banks colluded to raise the fees charged when people use an ATM not owned by their bank.

Some of the banks – namely Chase, Wells Fargo, and Bank of America – reached a class action settlement in 2021 worth $67 million. The banks did not admit to wrongdoing.

According to court records, the company AB Data was assigned as the settlement administrator, the entity whose job it is to actually distribute the money to all the eligible recipients.

AB Data established a website – atmclassaction.com – and sent notices to such recipients starting in late 2021. Recipients were told they could opt in to receive payment, opt out in order to retain their right to sue individually, object to the terms of the settlement, or do nothing and give up both their right to payment and their right to sue individually. The deadline for opting in was in May of 2022, and the deadline for objecting or opting out was in March of 2022.

In August of 2022, the court formally approved the settlement. On March 28, 2023, it instructed AB Data to distribute the payments within 90 days.

AB Data sent out emails to class members telling them payment would soon arrive, that they could choose between a variety of payment methods, and to be on the lookout for a follow-up email from Tremendous, a company contracted to provide digital payments. Recipients preferring a paper check were instructed to reach out to AB Data.

Emails from AB Data and Tremendous are from the legitimate, authorized administrators of this class action settlement, and recipients would have had to previously have filed a claim to receive such an email.

Still, it’s always good to be on the lookout for imitators: view our guide here for how to spot phishing scams.