Aeroplan CIBC and TD Bank Sued: A class-action lawsuit has been initiated against Aeroplan Inc., Canadian Imperial Bank of Commerce (CIBC), and Toronto-Dominion Bank (TD Bank), accusing these institutions of unfairly rescinding Welcome Bonus Points from thousands of Aeroplan Visa credit card holders. The lawsuit, filed by the Consumer Law Group (CLG), alleges that approximately 17,000 individuals were affected when their points were clawed back without adequate notice or transparency.
This legal battle highlights concerns over the fairness and reliability of promotional offers from major financial institutions and seeks compensation for the affected customers.
Aeroplan, CIBC, and TD Bank Class Action Lawsuit
The issue revolves around the Welcome Bonus Points offered to new Aeroplan Visa cardholders. These points, valued at CAD $100–$150 per 10,000 points, are a key incentive for customers signing up for Aeroplan credit cards.
The lawsuit alleges that both CIBC and TD Bank failed to clearly communicate that Welcome Bonus Points would not be awarded to individuals who already held an Aeroplan Visa credit card. As a result, thousands of customers unknowingly applied for a second card, believing they were eligible for the advertised bonus.
In October 2024, affected account holders were notified that their bonus points had been rescinded nearly a year after receiving them. The Consumer Law Group claims this clawback was unfair and violated consumer protection laws.
Aeroplan, CIBC, and TD Bank Class Action Lawsuit – Overview Table
| Details | Information |
| Companies Involved | Aeroplan Inc., CIBC, TD Bank |
| Affected Individuals | Around 17,000 Aeroplan Visa cardholders |
| Core Issue | Clawback of Welcome Bonus Points |
| Point Value | CAD $100–$150 per 10,000 points |
| Notification Date | October 2024 |
| Key Allegations | Unfair practices, lack of transparency, and consumer law violations |
| Lawsuit Filed By | Consumer Law Group (CLG) |
| What the Lawsuit Seeks | Restoration of points, compensation, and punitive damages |
Allegations Against Aeroplan, CIBC, and TD Bank
The lawsuit outlines several key allegations against the three institutions:
1. Lack of Transparency in Promotions
Aeroplan, CIBC, and TD Bank are accused of promoting their credit card offers without clarifying that Welcome Bonus Points would not apply to individuals who already held an Aeroplan card.
2. Failure to Notify Applicants
Despite collecting Aeroplan account numbers as part of the application process, the institutions failed to notify customers that they were ineligible for a second set of Welcome Bonus Points.
3. Violation of Consumer Protection Laws
The lawsuit alleges that rescinding points without prior notice or proper communication breaches consumer protection laws in various provinces.
4. Absence of Due Diligence
The institutions reportedly did not verify whether applicants were first-time or repeat Aeroplan cardholders, leading to widespread confusion and the unexpected clawback of points.
Important Details of the Class Action Lawsuit
The lawsuit highlights how the rescinded points impacted consumers and why the legal action is significant:
How the Points Were Rescinded
The Consumer Law Group alleges that CIBC and TD Bank failed to ensure that customers understood the eligibility criteria for Welcome Bonus Points. Many customers, unaware that they were disqualified as existing Aeroplan Visa cardholders, applied for a second card and used it under the assumption they would receive the bonus.
Nearly a year later, these points were clawed back, leaving customers feeling deceived.
Impact on Consumers
- Loss of Points: Each affected customer lost at least 10,000 Aeroplan points, equivalent to CAD $100–$150.
- Additional Costs: Many cardholders incurred annual fees and other expenses, believing they were entitled to the Welcome Bonus Points.
- Loss of Trust: This incident has eroded confidence in promotional offers from major financial institutions.
What the Lawsuit Seeks
The class action demands several remedies for the affected cardholders:
- Restoration of Welcome Bonus Points: The lawsuit seeks to reinstate all rescinded points for eligible customers.
- Financial Compensation: The claim includes reimbursement for annual fees and any other expenses incurred due to the clawback.
- Punitive Damages: The lawsuit aims to penalize Aeroplan, CIBC, and TD Bank for their alleged unfair practices.
- Improved Transparency: A push for clearer and more transparent promotional terms to prevent similar issues in the future.
How to Be Part of the Class Action
If you believe you are eligible to participate in the lawsuit, follow these steps:
1. Confirm Your Eligibility
You may qualify if:
- You applied for a second Aeroplan Visa credit card from CIBC or TD Bank.
- Your Welcome Bonus Points were clawed back in October 2024.
2. Register with Consumer Law Group
Reach out to the Consumer Law Group (CLG) to express your interest and provide the required details, such as your Aeroplan account number and credit card application information.
3. Stay Updated
Keep track of updates and deadlines related to the class action. Regularly check the Consumer Law Group’s official communications for further instructions.
FAQs
Who is eligible for this class action?
Anyone who applied for a second Aeroplan Visa credit card from CIBC or TD Bank and had their Welcome Bonus Points rescinded may be eligible.
How much are the rescinded points worth?
Each affected customer lost at least 10,000 points, valued between CAD $100 and $150.
What compensation does the lawsuit seek?
The lawsuit aims to restore the rescinded points, reimburse cardholders for incurred costs, and secure punitive damages for unfair practices.
How can I join the lawsuit?
You can contact the Consumer Law Group to verify your eligibility and register for the class action.
What are Aeroplan, CIBC, and TD Bank saying about the lawsuit?
While the lawsuit is ongoing, representatives have stated that they intend to “vigorously defend” themselves in court.
Conclusion
The Aeroplan, CIBC, and TD Bank class-action lawsuit is a significant case highlighting issues of fairness and transparency in promotional offers. For the 17,000 affected cardholders, it provides a pathway to recover lost points and seek compensation for financial losses.
If successful, this lawsuit could establish a new standard for how financial institutions manage consumer promotions, ensuring greater accountability and trustworthiness in their practices. Affected individuals are encouraged to verify their eligibility, register with the Consumer Law Group, and stay informed about the case’s progress.
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