A class-action lawsuit has been filed against Aeroplan Inc., Canadian Imperial Bank of Commerce (CIBC), and Toronto-Dominion Bank (TD Bank), alleging the unfair rescinding of Welcome Bonus Points from thousands of Aeroplan credit card holders.
This legal dispute sheds light on how credit card promotions can impact consumers and raises questions about fairness and transparency in marketing practices.
Background of the Lawsuit
The case revolves around Welcome Bonus Points—an attractive incentive offered to new Aeroplan Visa credit card applicants.
These points typically provide a monetary value of CAD $100–$150 per 10,000 points.
However, approximately 17,000 Canadians who applied for a second Aeroplan credit card in good faith found their bonus points clawed back nearly a year later. Notifications about the rescinded points were sent out in October 2024.
The Consumer Law Group (CLG), which filed the lawsuit, argues that Aeroplan, CIBC, and TD Bank acted unfairly in withdrawing these points without prior notice or clear communication.
The suit seeks to restore these points and compensate affected customers for related financial losses.
Allegations Against Aeroplan, CIBC, and TD Bank
The lawsuit outlines several allegations:
- Unfair Practices: The defendants allegedly promoted credit card offers without clarifying that Welcome Bonus Points would not apply to individuals already holding an Aeroplan card.
- Failure to Communicate: Despite collecting Aeroplan account numbers during the application process, neither bank nor Aeroplan warned applicants that they were ineligible for a second set of bonus points.
- Consumer Protection Violations: The clawback of points without notice or proper verification has been labeled as a breach of provincial consumer protection laws.
- Lack of Due Diligence: The banks reportedly failed to check whether applicants were first-time or repeat Aeroplan cardholders, leading to widespread confusion.
How the Points Were Clawed Back
When applying for an Aeroplan Visa card, new users were promised Welcome Bonus Points. However, the lawsuit claims that CIBC and TD Bank failed to ensure applicants understood that these bonuses were only available once per customer.
Many applicants were unaware that holding a previous Aeroplan Visa card disqualified them from receiving the bonus again.
Nearly a year after receiving the points, these same users saw them rescinded, leaving them feeling deceived.
Impact on Consumers
The clawback of Welcome Bonus Points has led to significant financial and emotional consequences for affected consumers:
- Loss of Points: Each account holder lost at least 10,000 Aeroplan points, equating to CAD $100–$150 in value.
- Unnecessary Costs: Some consumers paid annual fees or accumulated expenses under the assumption they were entitled to the bonus points.
- Loss of Trust: The incident has raised concerns about the reliability of promotional offers from major financial institutions.
What the Lawsuit Seeks
The Consumer Law Group is pursuing several remedies on behalf of affected Aeroplan cardholders:
- Restoration of Points: All clawed-back Welcome Bonus Points should be reinstated to eligible customers.
- Compensatory Damages: Affected individuals should be reimbursed for financial losses, including fees paid for the cards.
- Punitive Damages: The lawsuit aims to penalize the defendants for their alleged unfair practices.
- Improved Transparency: The case could set a precedent for clearer terms and conditions in consumer promotions.
How to Join the Class Action
If you believe you are eligible to participate in this lawsuit, follow these steps:
- Check Eligibility: Confirm that you applied for a second Aeroplan Visa card and had your Welcome Bonus Points rescinded.
- Register: Contact the Consumer Law Group to express your interest and provide necessary details.
Response from the Defendants
Aeroplan, CIBC, and TD Bank have refrained from directly commenting on the lawsuit, as it remains before the courts.
However, an Air Canada spokesperson has stated, “We intend to vigorously defend ourselves in this proceeding.”
What’s Next?
For consumers, this lawsuit represents an opportunity to recover lost points and seek compensation for any financial harm incurred.
If successful, it could also push financial institutions to adopt fairer and more transparent practices when offering promotional rewards.
Affected individuals are encouraged to stay informed and consider joining the class action if eligible.
