Desjardins Group could have to reimburse $ 9.5 million to members who have unduly paid insurance premiums by repaying their student loans to the financial institution.
Option consommateurs announced on Saturday that it had reached an agreement with the cooperative movement, which has undertaken to reimburse all of these fees, which were automatically collected between August 2, 2014 and March 31, 2021.
The agreement, which was reached following a class action against Desjardins, will be submitted to court on May 13. If approved, Desjardins will owe 9.5 million to those who paid for excess premiums, said Option consommateurs.
“Option consommateurs is satisfied with this settlement agreement with Desjardins […] It is important to ensure the consent of the people concerned before making them pay for insurance, ”commented Sylvie De Bellefeuille, lawyer and legal advisor at Option consommateurs, in a press release.
In an email sent to the QMI Agency on Saturday, Desjardins confirmed its commitment to reimburse the amount owed to customers if the agreement between the financial institution and Option consommateurs was approved by the Superior Court. In this case, the accounting firm Ernst & Young will be responsible for processing the refunds.
To be eligible for a possible reimbursement, the persons concerned must have received a student loan from Desjardins guaranteed by the government of Quebec. In addition, the loan repayment terms must not have been changed after August 2, 2014.
It is also not necessary to have made a claim under the insurance which was automatically invoiced.
Option consommateurs clarified that a request for reimbursement will not necessarily cancel the insurance premium. This will continue to be collected on the repayment of the student loan.
To cancel it, you will need to contact Desjardins directly.
The number of Desjardins clients affected was not disclosed by the institution.