Quebec Residents Eligible for Up to $100 Refund on Prepaid Cards
Consumers in Quebec who purchased prepaid cards between May 9, 2019, and February 11, 2026, may be eligible for a refund of up to $100 due to hidden activation fees. A class action lawsuit against Peoples Trust, the issuer of Vanilla, Perfect Gift, and American Express prepaid cards, has been approved, paving the way for payouts to affected customers. This settlement addresses a practice deemed illegal by Quebec courts – the concealment of activation fees on these widely used gift cards.
The issue centers around the way these cards were marketed and sold. Even as the principal amount of the card – typically $25 or $50 – was prominently displayed, additional activation fees, ranging from $3.95 to $7.95, were printed in small font at the bottom of the packaging, often making them difficult for consumers to notice. This practice violated Quebec’s Consumer Protection Act, according to legal documents related to the case. The total cost of a $25 card, for example, could reach $29.55 at the checkout, a surprise for many purchasers.
The Roots of the Lawsuit
The legal challenge originated with a resident of Saint-Laurent, Montreal, who discovered the hidden fees while attempting to purchase a $25 prepaid card at a Couche-Tard convenience store. Upon realizing the total cost was $29.55, she requested the store apply its price accuracy policy, but her request was denied. As reported by the Journal de Montréal, this incident sparked the class action lawsuit.
Peoples Trust, the company behind the cards, and 17 retailers, including Couche-Tard, Jean Coutu, Walmart, Canadian Tire, Pharmaprix, Metro, and Dollarama, were named in the suit. While the companies deny any wrongdoing, they have agreed to a settlement to avoid further legal proceedings. The settlement proposes a total payout of $5,500,000 to eligible consumers.
How the Settlement Works and Who is Eligible
The $5,500,000 settlement will be distributed after deductions for legal fees (30% plus taxes) and administrative costs. This leaves approximately $3.6 million for distribution among eligible claimants. According to Monfric.ca, each eligible individual could receive a payment ranging from $3 to $100, depending on the total number of valid claims submitted. Importantly, claimants will receive only one payment, regardless of how many qualifying cards they purchased during the specified period.
You may be eligible for a refund if you purchased a Vanilla, Perfect Gift, or American Express prepaid card issued or distributed by Peoples Trust in Quebec between May 9, 2019, and February 11, 2026. A key benefit for claimants is that a receipt is not required. Individuals can submit a claim based on a declaration, pending court approval of the settlement.
What Happens Next?
Currently, no payments are being issued. The Quebec Superior Court must first approve the settlement agreement at a hearing scheduled for March 16, 2026. If approved, a claim form will be made available on the official settlement website, www.ReglementCartePrepayee.com. Claimants will need to complete the form and attest to having purchased a qualifying prepaid card in Quebec during the eligible timeframe.
Consumers who do not wish to be bound by the class action can opt-out before the March 16, 2026, deadline. However, opting out means forfeiting the right to claim a refund under this settlement.
Peoples Trust Changes Practices
Beyond the financial compensation, Peoples Trust has committed to making permanent changes to its packaging. Activation fees will now be displayed on the packaging in a font size equal to or larger than that used for the card’s face value, ensuring greater transparency for consumers. This change aims to prevent future instances of hidden fees and provide clearer information at the point of purchase.
This settlement represents a significant win for consumer rights in Quebec, highlighting the importance of transparent pricing and clear disclosure of fees. It serves as a reminder to consumers to carefully review purchase details, even on seemingly straightforward products like prepaid gift cards.
The next step in this process is the court’s decision on the settlement agreement on March 16, 2026. Affected consumers should monitor the official settlement website for updates and information on how to file a claim once the settlement is approved. We encourage readers to share this information with anyone who may have purchased prepaid cards in Quebec during the relevant period.