A nationwide class-action lawsuit has been filed against Aeroplan Inc., Canadian Imperial Bank of Commerce (CIBC), and Toronto-Dominion Bank (TD Bank), alleging that these institutions unfairly rescinded Welcome Bonus Points from thousands of Aeroplan credit card holders.
The lawsuit claims that these financial institutions wrongfully “clawed back” bonus points given to Aeroplan customers who had applied for a second Aeroplan Visa credit card from either CIBC or TD. The claim, filed by Consumer Law Group (CLG), highlights that these actions took place almost a year after the customers signed up for their second cards, and the affected account holders are now part of a proposed class-action lawsuit.
Key Facts of the Lawsuit:
- Affected Companies: Aeroplan Inc., TD Bank, and CIBC.
- Number of Affected Individuals: Approximately 17,000 Aeroplan members.
- Issue: The rescinding of Welcome Bonus Points for customers who applied for a second Aeroplan Visa credit card.
- Timeline: Affected customers were notified in October 2024 about the clawback of their points.
- Claim: The lawsuit seeks both compensatory and punitive damages, as well as the restoration of the clawed-back points.
How the Clawback Allegedly Happened:
When signing up for an Aeroplan Visa credit card through CIBC or TD, customers typically receive Welcome Bonus Points as a sign-up incentive. However, the lawsuit claims that many customers were unaware that they wouldn’t qualify for the bonus points if they were already existing Aeroplan cardholders applying for a second card.
The plaintiffs allege that CIBC and TD did not verify whether applicants were current Aeroplan cardholders—a key condition for eligibility to receive the Welcome Bonus Points. Points, which have an estimated value of CAD $100 to $150 for every 10,000 points, were rescinded without advance notice to affected users.
Additional Details of the Lawsuit:
The suit also points to poor communication during the application process. Despite collecting Aeroplan account numbers, neither CIBC, TD, nor Aeroplan informed applicants that they would not qualify for the bonus points if they already held an Aeroplan credit card. The lack of transparency has caused confusion and frustration for many affected consumers.
Impact on Affected Consumers:
The clawback has resulted in a significant financial loss for affected customers, who lost at least 10,000 Aeroplan points—worth approximately CAD $100 to $150. In addition, many customers incurred additional annual fees and expenses when using their second credit card, under the false assumption that they would receive the advertised Welcome Bonus Points.
Consumer Law Group’s Allegations:
The lawsuit outlines several key allegations:
- Violation of Consumer Protection Laws: By rescinding points without notice, Aeroplan, CIBC, and TD may have violated provincial consumer protection laws.
- Unfair Practices: The lawsuit claims the clawback was an unfair practice, as customers were misled into thinking they were entitled to the Welcome Bonus Points.
- Failure of Due Diligence: Neither CIBC nor TD Bank took steps to verify whether applicants were eligible for the bonus points, which led to confusion and the unexpected rescinding of points.
What the Lawsuit Seeks:
The class-action lawsuit is seeking:
- Restoration of Points: The restoration of the lost Welcome Bonus Points to all affected individuals.
- Compensation: Reimbursement for the financial losses incurred, including annual fees and other related expenses.
- Punitive Damages: Payment of punitive damages for the alleged unfair practices.
How to Join the Class Action:
If you believe you are eligible to be part of this lawsuit, follow these steps:
- Verify Your Eligibility: If you applied for a second Aeroplan Visa credit card from either CIBC or TD and had your Welcome Bonus Points clawed back, you may be eligible.
- Sign Up for the Class Action: You can express your interest in joining the lawsuit by providing your contact details to Consumer Law Group.
Representatives from Air Canada, CIBC, and TD Bank have responded to the lawsuit but are not commenting directly on the allegations, as the case is ongoing. A spokesperson from Air Canada stated, “We intend to vigorously defend ourselves in this proceeding,” though further details were not provided.
For those who had their Aeroplan points rescinded, this class-action lawsuit presents a potential avenue for recovery of their points and compensation for the financial impact. If successful, the lawsuit could also promote greater transparency and accountability among financial institutions regarding their consumer promotions and sign-up bonuses.