Class-Action Lawsuit Targets Aeroplan A national class action lawsuit has been filed against Aeroplan Inc., the Canadian Imperial Bank of Commerce (CIBC), and Toronto-Dominion Bank (TD Bank). The lawsuit claims that these institutions improperly rescinded the Welcome Bonus Points from thousands of Aeroplan credit card holders.
The class action alleges that the financial institutions unfairly “clawed back” the bonus points from Aeroplan customers who had applied for a second CIBC or TD Aeroplan Visa credit card.
According to the lawsuit, filed by Consumer Law Group (CLG), approximately 17,000 Aeroplan members were informed in October 2024 that their bonus points had been rescinded, nearly a year after they had signed up for the second credit card. Affected customers are now part of a proposed class action, as they believe the clawback of the Welcome Bonus Points was unjustified.
Key Details of the Case
The lawsuit highlights several significant issues, including the companies involved — Aeroplan Inc., TD Bank, and CIBC — and the number of people impacted, which is estimated at around 17,000.
The central allegation is that the companies wrongfully rescinded Welcome Bonus Points from individuals who signed up for a second Aeroplan Visa credit card. Notifications of the clawback were sent out in October 2024, prompting the legal action that seeks both compensatory and punitive damages for the affected individuals, as well as the restoration of the lost Welcome Bonus Points.
How the Bonus Points Were Allegedly Clawed Back
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When applying for an Aeroplan Visa credit card through CIBC or TD, new customers typically receive Welcome Bonus Points as part of the sign-up incentive.
The lawsuit claims that many customers who already had an Aeroplan credit card and applied for a second one were unaware that they might not qualify for the bonus points a second time.
The plaintiffs assert that neither TD Bank nor CIBC verified whether applicants were existing Aeroplan cardholders, a key requirement for the Welcome Bonus Points.
As a result, these points, which can be valued at CAD $100 to $150 for every 10,000 points, were taken back without prior warning or explanation.
Additional Concerns in the Lawsuit
The lawsuit also emphasizes a breakdown in communication between the companies and their customers. Despite collecting.
Aeroplan account numbers as part of the credit card application process, neither Aeroplan, TD, nor CIBC informed applicants that they were ineligible for the Welcome Bonus Points if they were applying for a second credit card.
Impact on Affected Consumers
The clawing back of bonus points has had a considerable impact on affected consumers, including the following consequences.
Loss of Points: Customers were deprived of at least 10,000 Aeroplan points, which translates to a financial loss of between CAD $100 and $150.
Additional Fees: Many individuals incurred extra fees and expenses, such as annual credit card fees, believing that they would receive the Welcome Bonus Points as part of their second credit card application.
Allegations by Consumer Law Group
Consumer Law Group has made several key allegations in its class action lawsuit, including the following
Violation of Consumer Protection Laws: By rescinding the points without prior notice, Aeroplan, CIBC, and TD allegedly breached various provincial consumer protection laws
Unfair Practices: The lawsuit describes the clawback as an unfair practice, wherein customers were misled into believing they would receive the Welcome Bonus Points
Failure to Verify Eligibility: Neither TD Bank nor CIBC checked whether applicants were eligible for the bonus points, leading to confusion and unexpected losses for consumers
What the Lawsuit Seeks
The lawsuit is requesting several remedies for the affected customers, including
Restoration of Bonus Points: The lawsuit demands that the clawed-back Welcome Bonus Points be restored to all affected individuals
Compensation for Financial Losses: Account holders are seeking reimbursement for the fees and other expenses incurred as a result of the clawback
Punitive Damages: The class action also seeks punitive damages to address the unfair practices involved
How to Join the Class Action
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If you believe you are eligible to be part of this class action, you can follow these steps
Verify Eligibility: You must have applied for a second Aeroplan Visa credit card from either CIBC or TD and had your Welcome Bonus Points rescinded
Sign Up for the Class Action: You can express interest in joining the lawsuit by providing your contact details to the Consumer Law Group
Representatives for Air Canada, CIBC, and TD Bank have responded to the lawsuit by noting that, since the case is still before the courts, they cannot comment directly on the allegations. A spokesperson from Air Canada emphasized that the company intends to “vigorously defend itself” in the case, though further details have not been disclosed.
For the affected Aeroplan members, this class action represents an opportunity to reclaim the rescinded points and receive compensation for the financial losses incurred. If successful, the lawsuit could also lead to more transparency and accountability in how financial institutions handle consumer promotions and sign-up bonuses.