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TORONTO, Aug. 9, 2006 (Canada NewsWire via COMTEX News Network) --
A class action lawsuit has been
commenced against BMO Nesbitt Burns Inc., BMO Trust Company and BMO Bank
of Montreal. The proposed class action is brought by James R. MacDonald
on behalf of all present and former clients of the defendants who held
or hold Registered Retirement Savings Plans, Registered Retirement
Income Funds or Registered Education Savings Plans and who, since June
14, 2001, have incurred foreign currency conversion charges in these
accounts.
The statement of claim alleges that the defendants have systematically
converted foreign currency in these accounts to Canadian currency
without instructions from the customers, and without there being any
need to do so, based upon revisions to the Income Tax Act that came into
effect on June 14, 2001. In effecting all currency conversions, the
defendants levy an undisclosed conversion fee in addition to the amount
that they actually pay to buy or sell currency. The claim alleges that
the defendants failed to change their operational practices after the
change to the Income Tax Act, which allows RRSPs, RRIFs and RESPs to
hold foreign currency as an investment. The claim further alleges that
the reason for the defendants' failure to effect a change was so that
they could continue to earn profits from the foreign exchange fees, at
the expense of the class members.
The claim seeks damages for all the fees charged in association with the
unauthorized conversion of foreign currency to Canadian funds since the
change to the Income Tax Act became effective. It also seeks repayment
of all the hidden foreign exchange fees levied by the defendants on
transactions where the customer did authorize a conversion of funds from
Canadian to a foreign currency; but had no notice and did not agree to
payment of the hidden fee. Each time a foreign exchange fee is charged
by the defendants it depletes the funds in the customer's retirement or
education fund.
The Plaintiff is represented by the law firm Paliare Roland Rosenberg
Rothstein LLP. More details regarding the claim are available at
www.rrspclassaction.com. This proposed class action is proceeding on a
contingency fee basis. Class members will not be required to pay any
legal fees to the class lawyers unless the class action is successful at
trial or the class action is settled on favourable terms to class
members.
SOURCE: Paliare Roland Rosenberg Rothstein LLP
Margaret Waddell or Odette Soriano, Paliare Roland Rosenberg Rothstein
LLP, 250 University Avenue, Suite 501, Toronto ON, M5H 3E5, e-mail:
info@rrspclassaction.com, Toll free telephone: 1-888-569-4526
Copyright (C) 2006 CNW Group. All rights reserved.
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