Auto Parts Class-Action Lawsuits In Canada Are Giving Out Money & You Could Be Eligible
Settlements for auto parts class-action lawsuits in Canada are being paid out, and tons of drivers could get money for overpaying for car parts.
If you bought or leased a new vehicle from certain automakers over an 18-year period, you could be part of this class action.
It was announced recently that court approval was given for settlements totalling $78 million in class actions related to the alleged price fixing of automotive parts.
More than 40 class-action lawsuits in Canada have alleged that for over a decade, there were conspiracies to fix the price of auto parts that would be installed in new vehicles.
Even though settlements have been reached for these class actions, parts manufacturers haven't admitted any wrongdoing or liability related to the lawsuits.
The Canadian auto parts class-action settlements are being given out in multiple distributions.
Before this, the first settlement was related to seven class-action lawsuits, and payments were issued in March 2021.
Now, courts in Ontario, B.C. and Quebec have approved the settlements and protocols for distributing funds to people who purchased vehicles affected by the alleged price-fixing conspiracy.
That means the claims process is now open, and Canadians must file a claim if they think they're entitled to compensation.
So, here's what you need to know about eligibility, submitting a claim and getting money through the Canadian auto parts class actions.
Who is eligible to make a claim in the class action lawsuit?
You're eligible to receive compensation from this class action lawsuit if you purchased or leased new vehicles (passenger car, sport utility vehicle, van and/or light truck) sold by the following automakers between July 1, 1998, and September 30, 2016:
- Aston Martin
- BMW and Mini Cooper
- Chrysler, Dodge, Fiat, Jeep and Ram
- Ford, Lincoln and Mercury
- General Motors (Buick, Cadillac, Chevrolet, Daewoo, GMC, Hummer, Isuzu, Oldsmobile, Pontiac, Saab and Saturn)
- Honda and Acura
- Jaguar and Land Rover
- Mazda
- Nissan and Infiniti
- Subaru
- Toyota and Lexus
- Volkswagen, Audi, Porsche and Volvo
No wrongdoing is alleged against the automakers and they are not defendants in the class actions.
It's alleged that parts manufacturers conspired to fix the price of automotive parts, including air conditioning systems, auto lights, braking systems, door latches, ignition coils, power window switches, shock absorbers, and more.
You are still allowed to submit a claim even if you have since sold the vehicle you bought or leased that's part of this class-action lawsuit.
How do I submit a claim for the settlement?
You can submit a claim and apply for payment online, and there are no costs associated with submitting a claim.
If you received a letter or an email with a claim ID and PIN — which are being sent out between June 28, 2023, and July 12, 2023 — you'll have to put that information in to start your claim.
Automakers will provide customer information as proof of purchase in these cases, and that will either be prepopulated in the online claim form or provided to the claims administrator.
If you didn't get a claim ID and PIN, you can still submit a claim to get money from this class-action settlement.
When submitting a claim as an individual, you'll have to put in your contact information, purchase information, and payment information.
Proof of purchase can be invoices, receipts, original purchase or lease records, insurance documentation, government vehicle identification history documentation, or historical accounting records.
For purchases and/or leases of up to 15 vehicles that are included in the class action lawsuit, you must provide the make, model, and year of each affected vehicle.
For purchases and/or leases of more than 15 vehicles, you must complete the purchases spreadsheet that can be downloaded online.
How much money will I receive?
Payments will be distributed proportionally based on the value of your claim relative to the value of all approved claims.
It's expected that all claims will receive a minimum payment of $25 per claim — not per vehicle — but some people could get thousands of dollars from the settlement depending on their claim value.
Class members could see a good chunk of change in their settlements, entitled to up to 67.5% of their vehicle’s purchase price when bought within the qualifying years.
Note that the purchase price is not necessarily the price paid for the car but rather a calculation based on the manufacturer’s suggested retail price (MSRP).
Depending on the number of claims forms filed, it could be up to a year after the claims deadline before you get your compensation.
If your claim is approved and you selected that you wanted to receive your payment via e-Transfer, you'll get an email with your e-Transfer from Interac when the settlement is given out.
If you didn't select e-Transfer as your preferred payment method, a cheque through the mail to the address you entered in your claim and the money will be subjected to a $2 fee.
When is the deadline to make a claim?
The deadline to file a claim in the Canadian auto parts class action lawsuit to get part of the settlement is October 30, 2023.
Claims won't be accepted after that and you will no longer be eligible for compensation.
This article's cover image was used for illustrative purposes only.
