LOSS OF GRACE PERIOD (21-DAY PERIOD) - INTEREST CALCULATION METHOD M2
In 2004 and 2006, we filed a class action against certain financial institutions that issue credit cards.
In November 2006 and October 2007, Superior Court Justice Clément Gascon authorized these class actions against the following financial institutions:
- Amex Canada
- Citibank Canada
- MBNA Canada
- Royal Bank of Canada
These financial institutions are violating the Consumer Protection Act by imposing credit charges before 21 days have elapsed since the statement was sent. For example, if a consumer maintains an unpaid balance on a statement of account, he automatically loses the benefit of the interest-free period for all new purchases appearing on his next statement, even if he pays the bill on his statement of account in full by the due date. The action seeks the elimination of credit charges and the reimbursement of those obtained illegally.
On October 27, 2010, Mr. Justice Gascon ordered the closure of the groups involved in these actions.
Our members
You are entitled to either of these recourses if you have paid credit charges without being granted the grace period provided for in the Consumer Protection Act:
- With your Amex Bank of Canada card, between July 18, 2000 and August 31, 2010 (Class action no. 500-06-000203-030)
- With your Royal Bank of Canada, Citibank Canada or MBNA Canada card, between August 2, 2000 and August 31, 2010 (Class Action No. 500-06-000375-069)
Where we are
The Superior Court has authorized us to sue certain financial institutions. This could take several years. We recommend that you follow developments in this case by consulting the newspapers and our website.
We suggest that you keep all account statements showing that you have experienced this problem.