Amex settles with cardholders

American Express Canada has settled impending class action suits filed against it this past summer after it was forced to revoke certain key elements of its Platinum Card and Membership Rewards program offerings when Canadian Airlines International terminated its contract with...

American Express Canada has settled impending class action suits filed against it this past summer after it was forced to revoke certain key elements of its Platinum Card and Membership Rewards program offerings when Canadian Airlines International terminated its contract with the Markham, Ont.-based credit card issuer (see ‘Amex Rewards scrambles to overcome CAI loss,’ May 8, ’00).

The complaint leveled by Platinum cardholders was that Amex had reneged on its promise to provide free travel companion certificates, as per the terms of their membership agreements. A separate action was filed by a group of Membership Rewards members upset over the fact that they could no longer convert their Amex reward points into Canadian Plus points.

With the announced settlements, Amex will provide replacement travel companion certificates, which can be redeemed on either Canadian Airlines or its parent, Air Canada.