NATIONAL BANK OF CANADA
TSX : NA

NATIONAL BANK OF CANADA

December 18, 2006 08:00 ET

National Bank of Canada: Notice of Class Action Suit

MONTREAL, QUEBEC--(CCNMatthews - Dec. 18, 2006) - Further to the decision rendered by the Honourable Judge Clement Gascon of the Superior Court of Quebec on November 1st, 2006, below a copy of the notice of this class action suit.

At this moment, this case is still before the courts and the final decision has not yet been rendered. Therefore, National Bank will not make any further public comment.

About National Bank of Canada

National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. The National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has more than $116 billion in assets and, together with its subsidiaries, employs 16,972 people. The Bank's securities are listed on the Toronto Stock Exchange (TSX:NA). For more information, visit the Bank's website at www.nbc.ca.



The telephone number provided below is for the exclusive use of
journalists and other media representatives.

Denis Dube
Senior Director - Public Relations
National Bank of Canada
Tel.: (514) 394-8644


SUPERIOR COURT
(Class Actions)
CANADA
PROVINCE OF QUEBEC
DISTRICT OF MONTREAL

No. 500-06-000205-035
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MARIE-CLAUDE BIBAUD, a natural person
domiciled and residing at 81 Lalande,
Apartment 6, Longueuil, District of
Longueuil, Province of Quebec, J4G 1X9.

Petitioner and "Designated Person"

-and-

UNION DES CONSOMMATEURS, a legal person
constituted under Part III of the Companies
Act, having its main place of business at
6226, Saint-Hubert Street, Montreal,
District of Montreal, Province of Quebec,
H2S 2M2

Co-Petitioner

v.

NATIONAL BANK OF CANADA, having its main
place of business at 600 de La Gauchetiere
Street West, Montreal, District of Montreal,
Province of Quebec, H3B 4L2

Respondent


In the matter of the management and user fees
charged by the NATIONAL BANK to its customers for
utilization of a line of credit

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NOTICE OF THE INSTITUTION OF A CLASS ACTION
(Summary Notice)

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1. TAKE NOTICE that the bringing of a class action was authorized on
November 1, 2006 by judgment of the Honourable Mr. Justice Clement
Gascon of the Superior Court, who attributed representative status to
UNION DES CONSOMMATEURS and designated person status to Mrs. MARIE-
CLAUDE BIBAUD, for the benefit of the natural persons forming part of
the group hereinafter described, namely:

"All natural persons who were granted a line of credit by the
NATIONAL BANK OF CANADA (the BANK) in Quebec for purposes other
than the operation of a business, namely lines of credit commonly
referred to as "Marge Manoeuvre Protection" or "Marge Manoeuvre
Personnelle," and who paid the Bank, after July 27, 2000,
management or user fees which the Bank failed to withhold in order
to calculate the credit rate and the percentage (%) value of same,
as well as any natural person who, because of the foregoing, has
seen his credit rate increase since July 27, 2000 without
receiving adequate notice to that effect."

This class action is intended to recover illegal and abusive fees and
interest payments, as well as to obtain exemplary damages. It will
be instituted in the District of Montreal.

2. Summary of the Class Action

2.1 The NATIONAL BANK OF CANADA charges "consumers" who are holders
of a "Marge Manoeuvre Protection" or a "Marge Manoeuvre Personnelle"
line of credit certain fees which it does not take into account when
calculating the "credit rate" and the percentage (%) value of this
"credit rate";

2.2 The Petitioners consider that the charging of these fees,
commonly referred to as "Management Fees" or "User Fees", contravenes
the imperative provisions of the Consumer Protection Act and the
Civil Code of Quebec;

2.3 The Petitioners have instituted this class action in order to
stop the NATIONAL BANK OF CANADA from engaging in this practice and
to obtain for each of the members of the group:

a) The reimbursement of all fees and interest paid on said fees
which the BANK has illegally charged until the present time,
and which the BANK will continue to charge until a judgement
is rendered in this matter or until the BANK puts an end to
the practice;

b) The payment of $50 in damages for trouble and inconvenience;

c) The payment of $100 in exemplary damages by virtue of the
Consumer Protection Act and the Charter of Human Rights and
Freedoms.

d) The payment of all other losses or damages which the members
of the group may have sustained in addition to those specified
herein because of the aforementioned fees;

e) Interest and the additional indemnity provided by law for
the amounts listed above;

3. How to Become a Group Member?

3.1 If you wish to be included in the class action, you do not have
to do anything. In effect, unless special permission is granted, all
members who are part of the group will be bound by the judgment
rendered on the class action unless he or she asks to be excluded.

3.2 If you wish to be excluded from the class action, you must advise
the Clerk of the Superior Court, District of Montreal, by courier or
registered mail. The Clerk's address is 1, Notre-Dame Street East,
Suite 1.01, Montreal (Quebec) H2Y 1B6, and he must be informed no
later than January 16, 2007, that you are a member of the group
designated "BANQUE NATIONALE - MARGE DE CREDIT" (500-06-000205-035)
and that you wish to be excluded from these proceedings.

3.3 Nevertheless, any member of the group who has already instituted
an individual action involving an issue which would be decided by the
final judgment on the class action is deemed to have excluded himself
from the group unless he discontinues his suit no later than January
16, 2007.

4. No Liability For Costs

No member of the group, other than the representative or an
intervenant, can be ordered to pay the costs of the class action. In
other words, the Respondent cannot bring a claim against you merely
because you are a member of the group.

5. Additional Information

5.1 The members of the group are invited, although not obliged, to
provide their names, addresses and telephone numbers to UNION DES
CONSOMMATEURS or to the group's Attorneys, whose contact information
is included below. Given the number of persons involved, it would be
preferable to communicate by way of Internet, e-mail or fax. Please
do not forget to advise of a change of address. We obviously
recommend that you hold onto the account statements which record the
fees charged by the NATIONAL BANK OF CANADA.

This notice is only a summary of the Notice of class action
proceedings. Members of the group who wish to consult the full
Notice may do so by visiting the website of the Attorneys for the
group at www.recours-collectifs.ca by clicking on the "Class Action"
icon or by visiting the website of UNION DES CONSOMMATEURS at
www.consommateur.qc.ca.

ATTORNEYS FOR THE GROUP

Me Paul G. Unterberg
UNTERBERG, LABELLE, LEBEAU
1980, Sherbrooke Street
West, Suite 700,
Montreal (Quebec)
H3H 1E8
E-mail: contact@ullnet.com
Fax: (514) 937-6547

UNION DES CONSOMMATEURS
6226, St-Hubert Street,
Montreal (Quebec)
H2S 2M2
E-mail: union@consommateur.qc.ca
Telephone: (514) 521-6820
Fax: (514) 521-0736


PUBLICATION OF THIS NOTICE HAS BEEN ORDERED BY THE COURT

Contact Information

  • National Bank of Canada
    Denis Dube
    Senior Director - Public Relations
    514-394-8644