EN /FR
MBNA Canada Bank
This class proceeding concerns alleged illegal interest charges in relation to MBNA credit cards. The claim alleges that the flat fee MBNA charges in respect of cash advances constitutes interest and exceeds the maximum rate permitted by the Criminal Code (an effective annual rate of 60 per cent). The action seeks damages for repayment of the interest paid that exceeds the criminal rate and an injunction to compel MBNA to stop this practice.
The class of persons this class proceeding represents is set out in the certification order. Generally, it is comprised of all persons living in Canada who owned an MBNA credit card at any time prior to March 12, 2008 from which cash advances could be obtained.
Under the proposed settlement, the class will be expanded to include anyone who held an MBNA or Cuets Financial credit card up to November 30, 2011.
Koskie Minsky LLP and Paliare Roland Rosenberg Rothstein LLP are appointed as class counsel.
Si vous souhaitez parler à un agent bilingue, veuillez composer le numéro de notre ligne sans frais 1-877-309-9111. Si vous préférez poser vos questions par courier électronique notre addresse est mbnaclassaction@kmlaw.ca.
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Latest Developments
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March 6, 2013
The defendant has confirmed that the distribution of the net settlement proceeds to active cardholders was set to begin on March 28, 2013. We will provide a final update when it is confirmed that the distribution is complete.
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October 12, 2012
The court has approved the settlement of this class action and the fees of class counsel. A copy of the settlement agreement can be viewed in the documents section of this website.
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October 2, 2012
The settlement approval hearing will take place on October 11, 2012 at the Court House, 361 University Ave., Toronto, commencing at 10:00 a.m.
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August 14, 2012
Proposed Settlement Reached
On August 10, 2012, the parties entered into a proposed settlement of this action. The settlement agreement can be viewed in the documents section below.
Under the settlement, BofA Canada Bank will pay $8 million in to a settlement fund. The settlement fund will be paid:
- To legal fees (subject to court approval, these will be 30% of the fund, $2.4 million, plus disbursements & taxes);
- 10% of the balance to the Class Proceedings Fund;
- $500,000 to charity; and
- the balance will be paid as credits to each MBNA cardholder who has an active MBNA credit card at the time the credits are processed.
Expanded Class Definition
Under the proposed settlement, the class will be expanded to include anyone who held an MBNA or Cuets Financial credit card up to November 30, 2011.
Notice of Proposed Settlement Hearing
The notice of the settlement approval hearing can be viewed in the documents section below.
The hearing to approve the settlement and class counsel fees will take place on October 11, 2012 at the Court House, 361 University Ave., Toronto, commencing at 10:00 a.m. Class Members are welcome to attend.
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September 20, 2011
A case conference will be held on November 4, 2011 to review the Plaintiff’s materials for the summary judgment motion and confirm the schedule leading to the motion.
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August 19, 2011
The Plaintiff has completed its examination for discovery of the Defendants. Based on admissions from discovery, the Plaintiff will bring a motion for summary judgment. Essentially, the Plaintiff will be seeking a judgment that MBNA received interest in excess of 60% contrary to the Criminal Code. The summary judgment motion will be heard June 25-29, 2012.
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June 15, 2011
The examinations for discovery have been rescheduled to July 19-21, 2011.
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February 10, 2011
The Plaintiff has successfully brought a motion to require the Defendant MBNA Canada Bank to produce additional documents for the litigation. On February 4, 2011, the Ontario court determined that the documents the Plaintiff requested were relevant to one or more common issues and the evidence on the motion demonstrated there were documents missing from MBNA’s productions. The decision can be viewed in the documents section below. As a result of this decision and the anticipated additional documents to be produced, the oral examinations for discovery have been rescheduled to June 2011.
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August 30, 2010
The parties have exchanged relevant documents and have tentatively scheduled oral examinations for November 2010.
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January 22, 2010
The parties are currently proceeding to the discovery stage in the litigation. Trial preparation is ongoing.
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October 26, 2009
The Honourable Mr. Justice Cullity ordered that the trial be litigated in two stages. The first stage will determine the certified common issues, leaving to be decided at the second stage those issues concerning the amount of damages, or restitution, and punitive damages. The parties are conferring on the conduct of a protocol to sample the Defendant’s data with respect to the transactions in dispute.
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February 5, 2009
The Class Proceeding Committee awarded funding for this action.
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November 15, 2007
Application for Leave to Appeal of the Court of Appeal for Ontario’s order granting certification was denied by the Supreme Court of Canada.
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May 2, 2007
This action was certified as a class proceeding by the Court of Appeal for Ontario.
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March 6, 2013
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News Releases and Reports
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Documents
- October 22, 2012 Avid d'approbation d'un règlement et exclusion des nouveaux membres
- October 17, 2012 Reasons dated October 17, 2012
- October 12, 2012 Order dated October 11, 2012
- October 12, 2012 Notice of Settlement Approval and New Class Member Opt-Out
- August 14, 2012 Avis de règlement proposé
- August 14, 2012 Notice of Proposed Settlement
- August 10, 2012 Settlement Agreement
- August 18, 2011 Minutes of Case Conference before Madam Justice Carolyn Horkins
- August 16, 2011 Case Conference Brief for Thursday, August 18, 2011
- August 16, 2011 Letter to The Honourable Justice Carolyn Horkins
- February 4, 2011 Endorsement dated February 4, 2011
- March 19, 2010 Order of The Honourable Justice Cullity dated March 19, 2010
- October 26, 2009 Order of The Honourable Justice Cullity dated October 26, 2009
- October 26, 2009 Reasons of the Honourable Mr. Justice Cullity dated October 26, 2009
- December 3, 2007 Avis De Certification D'un Recours Collectif
- December 3, 2007 Notice of Certification
- May 2, 2007 Amended Order of the Court of Appeal for Ontario
- May 2, 2007 Reasons of the Court of Appeal for Ontario
- June 22, 2004 Statement of Defence
- June 8, 2004 Amended Statement of Claim
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FAQS
What is a class action?
A class action is a lawsuit which provides a method for a large group of people with common claims to join together to advance one large claim. Class actions are a more efficient and cost-effective way for groups of people with common claims to gain access to the legal system and seek justice.
What does certification mean?
In order for an action to proceed as a class action, the court must determine whether it is appropriate for the case to be treated as a class action. Some of the factors the courts consider are the extent to which the claims of the class members are common, and whether a class action is preferable to other methods (such as individual actions) of advancing the issues. The decision as to whether a class action should be certified takes place at a certification hearing and is decided by a judge. If certified, a representative plaintiff will advance the action on behalf of all of the class members.
How do I know if I am a Class Member?
The certification order will always contain a description of who is a class member. We post the certification orders in our actions so that you can review them. You do not need to “sign up” to become involved in a class action. If you are included in the class description, you are automatically a class member who will be affected by the outcome of the class action unless you decide to “opt out”.
Are Class Members notified of the certification of the class proceeding?
Yes. After the claim has been certified, the court will authorize notice to be given to the members of the class.
Can I opt out of a class action and pursue independent legal action?
Yes. When a class action is certified, class members are always given an opportunity to opt out of the action. A deadline is imposed for opting out. If you do not opt out by the given deadline, class members will be bound by the outcome of the class action, whether it is successful or unsuccessful. If you opt out, you will not receive any benefit if the action is successful.
Will there be any cost to class members for legal fees?
Typically, class actions are handled on a contingency fee basis, which means that the class action lawyers will be paid only if the class action is successful at trial or settled. In that case, class counsel fees may be paid by the defendants or out of the settlement or judgment proceeds as approved by the court. In addition, the plaintiff may seek funding assistance from the Class Proceeding Fund which, if funding is granted, may provide funding for disbursements.
I still have questions…
Please feel to contact us by using the contact information on this site.
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Contacts
Toll Free Hotline: 1.877.309.9111
KM Email: mbnaclassaction@kmlaw.ca
Margaret L. Waddell
Paliare Roland LLP
250 University Ave., Suite 510
Toronto, Ontario M5H 3E5
Email: info@mbnaclassaction.ca
