Prepaid cards: buyers could receive up to $100 in compensation

Prepaid cards: buyers could receive up to $100 in compensation

Consumers who purchased certain prepaid cards could receive compensation of up to $100 following a settlement approved by the Quebec Superior Court.

The class action targeted Peoples Trust, the issuer of Vanilla, Perfect Gift, and American Express prepaid cards, as well as several retailers that sold these products.

The lawsuit was launched in 2022 after a consumer paid $28.95 plus taxes for a $25 prepaid card at an Alimentation Couche-Tard store. The activation fees were not clearly displayed on the packaging or in-store, which violated Quebec’s Consumer Protection Act.

As part of the settlement, Peoples Trust will pay $5.5 million without admitting liability. The company also agreed to modify the packaging of its cards so that activation fees are clearly indicated before taxes.

Eligible individuals are those who purchased a prepaid card issued by Peoples Trust between May 9th, 2019, and February 11, 2026. Claimants may receive between $3 and $100 by electronic transfer, depending on the number of claims submitted.

In addition to Peoples Trust, several retailers were named in the class action, including Dollarama, Walmart Canada, Canadian Tire, Metro, Best Buy Canada, and Groupe Jean Coutu.

For more information about this class action, visit the Prepaid Cards Class Action website.