A nationwide class-action lawsuit has been filed against Aeroplan Inc., Canadian Imperial Bank of Commerce (CIBC), and Toronto-Dominion Bank (TD Bank) in Canada The lawsuit claims these institutions wrongfully rescinded Welcome Bonus Points from thousands of Aeroplan credit card holders.
The lawsuit, led by Consumer Law Group (CLG), alleges that the financial institutions unfairly “clawed back” bonus points from customers who had applied for a second CIBC or TD Aeroplan Visa credit card.
Details of the Lawsuit Clawback of Welcome Bonus Points
The lawsuit alleges that approximately 17,000 Aeroplan account holders were notified in October 2024 that their bonus points had been rescinded, nearly a year after they signed up for a second credit card The affected account holders are now part of a proposed class-action lawsuit seeking to recover the bonus points and demand compensation for the alleged unfair actions.
How the “Clawback” Occurred
Aeroplan credit card holders typically receive Welcome Bonus Points when signing up for an Aeroplan Visa credit card However, the lawsuit claims that thousands of customers who already owned an Aeroplan card were unaware that they might not be eligible for bonus points when applying for a second one.
The lawsuit suggests that CIBC and TD Bank failed to verify whether applicants were existing Aeroplan cardholders, a key condition for receiving the Welcome Bonus Points As a result, customers were shocked when they found that their bonus points, worth CAD $100 to $150 for every 10,000 points, were rescinded without prior notification.
Key Points of the Class Action Lawsuit
The class action lawsuit brings several critical issues to light
Defendants Aeroplan Inc., TD Bank, and CIBC
Affected Individuals Around 17,000 Aeroplan members
Allegation Unfair rescinding of Welcome Bonus Points from those who signed up for a second Aeroplan Visa credit card.
Notification Date Notifications were sent out in October 2024, nearly a year after the customers applied for their second card.
The lawsuit seeks both compensatory and punitive damages for the affected individuals, along with a demand for the restoration of the clawed-back points.
Impact on Affected Consumers
The impact on the affected consumers includes:
Loss of Points Affected account holders were deprived of at least 10,000 Aeroplan points, which could have been worth CAD $100 to $150.
Additional Costs Many customers incurred extra annual fees and other charges when using their second credit card, under the assumption that they would receive the advertised Welcome Bonus Points.
Consumer Law Group’s Allegations
The Consumer Law Group (CLG) has outlined several allegations against the financial institutions involved:
Violation of Consumer Protection Laws The failure to provide advance notice before rescinding points may constitute a violation of provincial consumer protection laws.
Unfair Practices The lawsuit claims that the clawback of bonus points was an unfair practice, with customers unknowingly enrolled in a promotion under false pretenses.
Lack of Due Diligence CIBC and TD Bank allegedly failed to properly verify whether applicants were eligible for the bonus points, leading to confusion and disappointment among affected customers.
What the Lawsuit Seeks
The lawsuit is seeking the following from Aeroplan, CIBC, and TD Bank:
Restoration of Points Reinstating the lost Welcome Bonus Points to all affected account holders
Compensation Covering the financial losses incurred, including the annual fees and related expenses
Punitive Damages Holding the institutions accountable for the unfair practices and demanding punitive damages
How to Participate in the Class Action
If you believe you may be eligible to join the class-action lawsuit, here’s what you need to do:
Verify Eligibility You must have applied for a second Aeroplan Visa credit card from either CIBC or TD Bank, and had Welcome Bonus Points rescinded.
Sign Up Express your interest in joining the class action by providing your contact details to Consumer Law Group.
Representatives for Aeroplan, CIBC, and TD Bank have yet to comment on the ongoing lawsuit, stating that they cannot discuss matters currently before the courts However, Aeroplan has issued a statement confirming that they will vigorously defend their position in the lawsuit.
Conclusion A Potential Win for Consumers
For affected Aeroplan account holders, this class-action lawsuit represents an opportunity to recover the clawed-back bonus points and receive compensation for financial losses caused by the unfair practices If successful, this lawsuit could encourage greater transparency and fairness in how financial institutions handle consumer promotions and sign-up bonuses.
