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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
My wife booked a round trip ticket in December 2021.
A few days later the Federal Government issued a “Travel Advisory “
When she called to cancel she had to fight them just to get a credit with the airline that will expire in 10 months.
The credit voucher was $1100.00 .
She just tried to rebook with RBC Travel …after waiting for 2 hours for her call to be answered she was told she would have to pay an additional $340.00 dollars.
That is 1440.00 I will join her and pay without RBC Travel $869.00 for exactly same flights.
RBC is $500.00 more! Why?
We have endured the same nightmare as the above people with our flights from Vancouver to SA. Over $13,000 in flights cancelled by BA due to the ban on flights due to Omicron concerns. It has been almost 3 months and no refund or credit to date. Given the complete runaround with endless hours on the phone, emails. How to join a class action lawsuit?
I received a credit april 2021 I just tried using the credit and the rules restrictions around using the credit render my credit unsuable its a complete scam
After several months of calling RBC Rewards, I was told that I would receive a credit for a flight which was cancelled in March 2020. No such credit shows on my account and it has proven impossible to contact them by phone.
I received a credit april 2021 I just tried using the credit and the rules restrictions around using the credit render my credit unsuable its a complete scam
We booked a ski trip to Fernie BC using Reward points for the flight plus cash for taxes etc. We also booked a hotel and car rental. The trip was $2000. not including the flights. The day we arrived the resort closed down. We never get to ski and had to book separate flights home. We only had rewards for one flight credited back to our account.
I just received a message saying my reward points will be put back in my account for one ticket when I purchased 3. I knew nothing about this class action til I googled it.
I received a credit april 2021 I just tried using the credit and the rules restrictions around using the credit render my credit unsuable its a complete scam
I did talk with my lawyer to open a lawsuit against RBC Reward, they are such a big lair!!
They told me I can use my credit $8,750 after COVID. Now, they are telling me I can’t use them …. or use partially for the date when they offered, and all must be at the same time on the same persons, same Airline and same destination, in addition, those credits can’t be used for fare, tax,…. !!!! Are you kidding me?
In a word, they put your through a very hard and impossible terms and conditions to say NO!!
I was collecting my point one by one, and RBC stole all of them in one shot!!!!! #I_HATE_RBC_REWARDS
I purchased tickets from Vancouver to Arizona with Air Canada using a combination of 44,521 ($445.21) reward points and an additional $882.95 payment. I booked the trip for me and a friend.
Rbc travel rewards gave me a trip credit but will not refund the money I paid that wasn’t points ($882.95) and after calling multiple times saying I won’t be travelling with the friend in the future they said they could change her voucher to my name but still can’t refund me anything, even though Air Canada is giving full refunds on their flights. I’m so frustrated.
I received a credit april 2021 I just tried using the credit and the rules restrictions around using the credit render my credit unsuable its a complete scam
I booked an airline flight to Calgary for May 2020 using 35000 rbc rewards points and $201.00 for fees surcharges .The flight was cancelled and I l received an email in May 2020 with an airline credit of $678.01. I booked the flight in Feb 2020 . The federal government is now directing Air Canada to refund customers but when I contact Air Canada re a refund I am told to contact rbc rewards and am having difficulty reaching them .
We booked round trip tickets from Vancouver to Ireland using a combination of 130,000 RBC Travel points and $301.32 CDN cash on Jan 8, 2020.
The flight was to leave for Dublin on April 9, 2020 and return on June 11, 2020.
On January 21, we received notice that one of our flights had a minor change (no problem).
On March 18, we received an email from Aer Lingus telling us we could change our flight without a fee. This was obviously not something we were in a position to do given Covid and the total disruption of our plans.
I tried contacting RBC Travel I was told on their web site and answering machine to wait until close to the departure time as they were too busy to take any calls. We did this and were told that they were “working with the airlines” re reimbursements.
On March 31, I gave up the calling and sent them an email requesting my money back or giving me my points back. I got an automated message basically saying don’t contact them, they’d contact me.
On April 3, I get an email from Aer Lingus telling me my only option is to get a voucher. In attempting to contact RBC Travel I was told on their web site and answering machine to wait until close to the departure time as they were too busy to take any calls. We did this and were told that they were “working with the airlines” re reimbursements.
I contacted RBC Travel again and they told me it was out of their hands. It was all up to the airline.
With no other choice, I accepted the vouchers, only to find that any trip had to be concluded by Mach 20, 2021. This was clearly unacceptable, but with no other option available and no one at Aer Lingus (or RBC Travel) answering the phone, I was left with no real choice and hoped that conditions would improve to the point I could use the voucher.
We’re now a year later. I cannot fly to Ireland with Aer Lingus without going through the USA (not a tenable position for a 66 year old who has just had atrial valve replacement surgery). The deadline of returning by March 20, 2021 is also not tenable.
I have recently contacted Aer Lingus again and they inform me that it’s none of their business … I have to take it up with RBC Travel.
What are my options?