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Disgruntled customers filed a request to institute a class action lawsuit in Canada last week in Montreal’s Palais de Justice against Royal Bank of Canada (RBC). The RBC class action lawsuit proposal concerns the bank’s refusal to refund card holders’ Rewards points used to purchase flight tickets that were cancelled due to COVID-19.
Similar class action lawsuits in Canada have been filed against Canada’s major airlines, including Air Canada and Air Transat. This class action lawsuit is particular, however, because the plaintiff leading the RBC class action lawsuit, Nathalie Nasseri, purchased the airline tickets through her RBC Rewards points.
RBC card holders who purchased flights using their Rewards points, effectively bought the tickets through RBC. The bank determined the price of each ticket and all the necessary arrangements were made by RBC as well. Additionally, card holders who purchased airline tickets using their Rewards points did not interact with any airline.
The RBC class action lawsuit includes any person who is a member of the RBC Rewards program, redeemed RBC Rewards points to purchase airfare, had a trip cancelled due to the COVID-19 pandemic and was not refunded the RBC Rewards points redeemed for the purchase.
Nathalie purchased two Air Canada tickets for her parents using her accumulated RBC Rewards points in November 2019. The ticket purchases totalled 172, 928 points, with a monetary value of $1, 729.28. The flights were planned for April 3, 2020, according to the RBC class action lawsuit.
RBC made all the arrangements with Air Canada. Much to Nathalie’s dismay, however, on March 30, she received an email notifying her that the flights she purchased were cancelled due to the COVID-19 shutdown. In a somewhat deceitful manner, argues the RBC class action lawsuit, the bank stated, “No need to call us, we are taking care of you.” Nathalie claims that the wording of RBC’s assurance suggested that they would take care of the entailing refunds and reimbursements.
“Illusionary” RBC Rewards Points
Almost a month after receiving the first RBC email, Nathalie received another one informing her that Air Canada was offering $864.64 for each ticket she purchased, in the name of person on the original airline ticket, the RBC class action lawsuit claims.
However, Nathalie was surprised to find out that RBC would neither refund her this money, nor the equivalent in Rewards points. Rather, RBC offered that she could use Air Canada’s credit to buy future flights within a certain time-frame that had not yet been determined.
RBC’s “offer” would therefore be of little use to Nathalie or anyone else in her position, because she booked the flights for her parents in their names. As such, she was barred from booking another trip for herself using the credit.
The RBC class action lawsuit alleges that the use of RBC’s Rewards points in this case and in similar cases were “illusionary.” The reasons put forward by Nathalie’s legal counsel are twofold: First, Nathalie will not use the Rewards points credited to her for future Air Canada travels for her parents, because they no longer wished to travel after the onset of the COVID-19 pandemic. The second argument brought forward is based on Air Canada’s financial instability following the COVID-19 health crisis. If Air Canada were to go out of business before the credit is redeemed, Nathalie would receive no benefit from the Rewards points whatsoever.
Dissatisfied Customers Still Awaiting COVID-19 Refunds
Major Canadian airlines have been hit with several Canada class action lawsuits over similar claims, due to their decisions to provide passengers vouchers or credits rather than refunds for COVID-19 flight cancellations.
Air Canada, Sunwing, West Jet and their wholesale travel groups are named in a Canada-wide class action lawsuit, after they refused to refund passengers for cancelled flights due to the COVID-19 pandemic.
The Canadian Transportation Agency (CTA) is also named in a Canada class action lawsuit over charges that the CTA inappropriately took the side of the airlines offering vouchers instead of refunds to passengers who had to cancel their flights.
A Quebec class action lawsuit is targeting Air Transat. Echoing the previous Canadian airline class action lawsuits, this case takes issue with Air Transat’s refusal to refund travellers for flights cancelled due to the COVID-19 pandemic.
The RBC class action lawsuit is seeking the restitution and recovery of non-refunded travel ticket purchases as well as punitive damages.
Did you purchase flight tickets using RBC’s Rewards points, or rewards points through another credit card company? Were your points refunded? Share your story with us in the comments below!
Nathalie and Class Members are represented by James Reza Nazem.
The RBC Class Action Lawsuit is Nathalie Nasseri v. Royal Bank of Canada, Case No. 500-06-001086-202, in the Superior Court of Québec, District of Montreal, Canada.
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20 thoughts onRoyal Bank of Canada Faces Class Action Lawsuit Over Rewards Points
In response to my comment left earlier today, there came no resolution from my call with the RBC Avions Rewards representative. After over 3 hours on the call, she said to call back in two days to see if any economy class seats would open up as the booking system currently only shows business or premium class offers for flight credits. She also said she would “reward” me 5000 points for my time on the call today but she could not reimburse my points for the flight, should I not be able to use the flight credit. It is worth noting, my flight credit is $500, $250 of which I paid with my own money, the other $250 paid with points. Should I be unable to use the flight credit, Air Canada and RBC Avion Rewards benefit, obtaining not only the points I earned and don’t receive back, but also the money I paid out of pocket. They’re basically “banking on” flight cancellations and profiting from it.
I am currently facing a similar situation. Booked a flight in October 2022 that had to be cancelled. Avion issued me a credit with Air Canada, valued at $500, the original booking price for an economy seat to Las Vegas from Vancouver. Now I’m speaking with an agent who is telling me that any option I have to fly between now and August (the date of my credit expiration) to any comparable destination (we are trying Toronto and LA as two examples) is showing up at her end as ‘premium economy or business class’ only. Meaning, there is no option to book as per my original flight fee and class. This is ludicrous. How is it possible that the airline offers seats in economy class to book – that I can see are available via my Avion RBC rewards flight booking platform – yet it’s not possible, at all according to this agent, to use my credit to book an economy seat for a flight of similar value to my original booking?? This makes zero sense. I’m on hold now as the agent is attempting to escalate my matter but she continues to tell me this is “out of RBC/Avions” control, given it’s the airline that controls the seat and flight availabilities. I explained, as I’m waiting on this call, that RBC/Avion is absolutely in control, given it has set up the partnership with the airline and can opt to refund the credits to the cardholder if there is no viable option for the cardholder to book a similar flight based on the limitations THEIR PARTNER is placing on THEM to book. Why should I lose this $500 credit if the Avion/RBC Rewards’ partnership is limiting my ability to use it? This absolutely feels like a scam. I will provide an update to this comment once I learn more after this call, which may never end…
What is the status of this class action lawsuit as of February 2023?
This happened to me in August/Sept 2022. I had round trip economy flights on Air Canada from Toronto to NYC booked for end of August, which I had purchased using RBC rewards points from my RBC Visa Infinite Privilege card that I pay a bloody arm and a leg for every year. There was a death in my family so I had to cancel the flight and I was reassured that I would have a credit that could be used for up to one year. The credit was for approx. 500 CAD. I tried to use the credit to book economy round trip Air Canada from Toronto to DC which on the RBC travel site was listed as the same cost as my original NYC flight (35k rewards points plus approx 180 CAD cash). I phoned the number given to me by RBC Travel in order to use this credit, since they don’t let you do this online. And I was told that on the specific flights to DC that I am requesting there are only “Executive class” seats available, therefore I would have to add approx 1200 CAD to my credit. I told them that this is not true, as their OWN WEBSITE shows the availability of economy seats and I gave them the listed price. They insisted that there are only executive class seats and I would have to pay this huge difference in cash. They put me on hold forever and even claimed to call Air Canada who they say confirmed this. Again, I told them that this is false. We went back and forth forever and finally I just gave up and bought the economy flight myself on their website with fresh points. I told them directly that I am fully aware that this is a scam to prevent me from using my credit as there is no evidence that either of those flights are sold out of economy. I will not even get into the fact that I had to go through 3 different agents as each time I was given this bad news, I was put on hold and then mysteriously disconnected and never called back, even though the first thing they ask you when you get on the phone is for your phone number so they can call you back in case of a disconnection. I am just disgusted with this bank. I have been banking with them for over ten years, both for my personal and business needs and it’s one disappointment after another. Their customer service is abysmal to say the least, and this has always been the case, but I cannot tolerate being blatantly scammed. I will certainly be looking to gradually move my banking elsewhere after this. I would also be interested in participating in a class action if there should be one.
RBC are still doing the same thing in Ontario as of March 2022. I have been arguing with them for 5 months trying to get a refund of points used to purchase flights cancelled due to covid. I even payed extra for the refund option but to no avail. Anybody looking at a class action in Ontario, I would join.
I purchased tickets in Jan 2020 for flights in March 2020 with my RBC rewards. Flights were obviously cancelled as this was the initial COVID lockdown. I received one email that I had credits in June 2020. It said they would provide me with an update at a later date. No update ever came. I called later in 2020 and was told the credits would expire in Dec 2021. No refunds were given. I called in Dec 2021 to ask about an extension because of the Omicron wave travel restrictions. I was told Yes they were extending until March 2022. I called again in March to redeem and no one can access the tickets or credits. I have spent hours on the phone getting disconnected and not called back. I have called RBC they told me to call WestJet who then told me RBC had to call them. I still do not have any access to my credits.
I had a cancelled flight for Nov 2021. Round trip from St. John’s to Central America. I was ‘credited’ for the value of each ticket that could only be used for Air Canada through RBC rewards in future. The total between our 3 tickets is $2400.
I just tried to book 3 ONE WAY tickets from St. John’s to Vancouver. They said that would use up the $2400 PLUS I would need to pay $550.
Absolutely insanity!
The base value of our original flights was $435, base value of new flights is $390. Taxes are less in Canada then to fly to CR. If I book online with Air Canada at this moment TOTAL is $1190.
I could not understand the math they were trying to explain.
I will be canceling my rewards card, professional accounts as a physician and car insurance with RBC due to this scam.