Wednesday, November 27, 2024

Student Loans: Desjardins can pay off $ 9.5 million in insurance premiums

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Maria Gill
Maria Gill
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Desjardins could be forced to repay $ 9.5 million to members who paid their insurance premiums without justification by repaying their student loans to the financial institution.

Option consommatesers announced on Saturday that they have reached an agreement with the cooperative movement, which has pledged to pay all these fees, which were automatically collected between August 2, 2014 and March 31, 2021.

The agreement, reached after a class action lawsuit against Desjardins, will be presented to the court on May 13th. If approved, Desjardins would owe 9.5 million to those who paid in excess premiums, Option Partners say.

Options partners are satisfied with this settlement agreement with Desjardins […] Sylvie de Bellefeuille, attorney and legal advisor at Option Consommateurs, commented in a press release: “It is important to ensure the consent of the people involved before they pay for the insurance.”

In an email sent to QMI on Saturday, Desjardins affirmed its commitment to repay the amount owed to clients if the agreement between the financial institution and Option’s contractors is approved by the Supreme Court. In this case, accounting firm Ernst & Young will be responsible for processing the refunds.

To be eligible for potential compensation, the persons involved must have taken out a student loan from Desjardins with the guarantee of the Quebec government. In addition, the terms of repayment of the loan must not change after August 2, 2014.

It is also not necessary to file a claim under insurance that is automatically billed.

Option advisors made clear that requesting reimbursement would not necessarily result in the cancellation of the premium. This will continue to be collected when the student’s loan is paid off.

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To cancel it, you will need to contact Desjardins directly.

The foundation did not disclose how many of Desjardin’s clients were affected.

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