Class Action - Desjardins Student Loan Insurance

On July 9, 2019, the Superior Court of Québec (the “Court”) authorized Option consommateurs to institute a class action against Desjardins Financial Security and the Fédération des caisses Desjardins du Québec (“Desjardins”) on the grounds that it automatically added a Loan, Life and Disability Insurance premium (the "Insurance") to the loan repayment terms of persons who took out a student loan and who did not enter into a repayment agreement with Desjardins within six months of the end of their studies.

You are a member of the authorized group if all these conditions are met:

You have taken out a student loan guaranteed by the Government of Québec from a Desjardins Caisse; and

Desjardins sent you a default repayment agreement, the terms of which were not modified prior to your first payment and which took effect after August 2, 2014; and
These terms include an Insurance premium automatically added by Desjardins; and
You have never made a claim under this Insurance.

Since the authorization of the class action, Option consommateurs has reached an agreement with Desjardins to settle the Class Action.

This web site presents the information and relevant documentation to this case and the settlement agreement thereof. To this effect, an interactive Frequently Asked Questions section is available to answer your questions. If you still have questions after having consulted the Frequently Asked Questions, do not hesitate to Contact Us using the form below.

Frequently Asked Questions

Learn more about the Class Action:

This notice is published to inform you of two important events in the file:

Option consommateurs has been authorized to institute the Class Action against Desjardins; and

An Agreement has been reached with Desjardins in the context of the Class Action.

This notice summarizes how the Class Action works, who the class members are and explains in detail the Agreement and your rights under it.
A class action is a legal proceeding in which a person called the “Plaintiff” or “Class Representative” seeks permission to act on behalf of a group of people affected by the same problem, the class members.

Once the Plaintiff obtains the Court’s permission, the Plaintiff acts as a plaintiff on behalf of all the class members, allowing the Plaintiff to, among other things, settle a cause of action on their behalf, except for those who choose to opt out of the class action.

In the Class Action, Option consommateurs obtained this authorization and acts as Plaintiff.
In the context of the Class Action, Options consommateurs reproaches Desjardins of having added an Insurance to a group of students who have completed their studies and have begun repaying their student loans without negotiating a repayment agreement with Desjardins (the “ Class Members”).

Payment of the premium for this Insurance was automatically added to the repayment terms of student loans.

Option consommateurs asks Desjardins to reimburse the Class Members for all premiums collected, as well as to pay damages.
In its judgement authorizing Option consommateurs to institute the Class Action, the Court identifies the questions that it would have to answer for the benefit of the Class Members if a trial was to take place. The Court also identifies the conclusions that Option consommateurs may seek against Desjardins.

You will find the issues in dispute to be dealt with collectively and the conclusions sought by Option consommateurs in paragraphs 87 and 88 of the authorizing judgment, which you may consult HERE.
There was no trial. The Court did not rule in favour of Option consommateurs or Desjardins. Instead, both parties agreed to a settlement agreement.

A settlement agreement is a compromise that allows all parties to avoid the delays and risks associated with a trial.

Option consommateurs and its lawyers believe that the Agreement is the best solution for all Class Members and have therefore asked the Court to approve it.

Learn more about the Class Members:

The Court authorized the Class Action on behalf of the following class:

« Any person who has contracted a student loan guaranteed by the Government of Québec from a Desjardins Caisse and whose repayment terms include the payment of a premium for Loan, Life and Disability Insurance (also known as Group Life, Health and Job Loss Insurance associated with a loan, OR Student Loan Insurance) added automatically by Desjardins Financial Security and the Fédération des Caisses Desjardins du Québec after August 2, 2014, with the exception of persons who have made a claim under this Insurance.»

To be more precise, you are a Class Member if all these conditions are met:

You have taken out a student loan guaranteed by the Government of Québec with a Desjardins Caisse; and

Desjardins sent you a default repayment agreement, the terms of which were not modified prior to your first payment and which took effect after August 2, 2014; and
These terms include an Insurance premium automatically added by Desjardins; and
You have never made a claim under this Insurance.

If you are a Class Member, you can take advantage of the benefits of the Agreement.

You are not a Class Member if:

You have contacted Desjardins to request a modification to a term of your repayment agreement before your first payment, regardless of the modified term; or

Your repayment agreement took effect before August 2, 2014, whether or not you contacted Desjardins; or

You have made a claim under the Insurance.

WARNING: If you contacted Desjardins to defer your repayment because you were still a full- time student or participating in the Deferred Payment Program offered by the government, you are a Class Member.

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Class Action - Desjardins Student Loan Insurance

Frequently Asked Questions

Learn more about the Class Action:

Downloads

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Insights

Spotlight

Services

Spotlight

Industries

Case studies

Careers

Spotlight

About us

Top news

Class Action - Desjardins Student Loan Insurance

Frequently Asked Questions

Learn more about the Class Action:

Why is this notice being published?

What is a class action?

What is the purpose of the class action?

What are the issues in dispute to be dealt with collectively and what conclusions are sought?

Why a settlement agreement?

Determine if you are a Class Member.

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