Canadian banks and Desjardins are facing a proposed class-action lawsuit over allegations that they are charging hidden fees for foreign currency exchange services, according to reports from La Presse.
The lawsuit, led by Montreal-based law firm LPC Avocats, claims that seven major Canadian banks and Desjardins are embedding currency conversion costs within exchange rates rather than disclosing them upfront in customer contracts. This practice, the firm argues, violates Article 12 of Quebec’s Consumer Protection Act, which prohibits charging fees unless the exact amount is clearly specified in the agreement.
Eve, a TD Bank customer cited in the report, visited a branch twice to purchase U.S. Dollars and was never informed of any service charge. Her transaction statements showed no mention of a fee. However, calculations by LPC Avocats revealed implied costs of 3.52% on the first transaction, and 3.49% on the second—representing the difference between the interbank (reference) rate and the rate applied by the bank.
According to Joey Zukran, the lawyer leading the case, these are not mere profit margins but actual fees for a service that should be transparently billed. He referenced a prior court decision affirmed by the Supreme Court of Canada, which stated that in everyday language, a commission, percentage, or adjustment constitutes a “cost” or “fee.”
The proposed class action could potentially affect millions of Quebec residents who have used foreign currency exchange services through these institutions. The case highlights ongoing concerns about fee transparency in the banking sector, particularly as consumers increasingly scrutinize hidden charges in financial products.
As of Wednesday, April 22, 2026, the lawsuit remains in the early stages, with no court date set for certification of the class action. Desjardins and the banks named have not issued public comments on the allegations at this time.
