“Serious irregularities”: Transat launches legal action “to shed full light” on BonBon mess

Transat has initiated legal proceedings in order "to shed full light" on its glitch-ridden BonBon loyalty program for travel advisors, PAX has learned.

The company's commercial team shared the update with travel advisors on Monday (Sept. 15), calling its action an “important step we have taken in this complex matter.”

“Our investigations revealed findings of serious irregularities regarding the BonBon program,” the notice reads. “The recent breach of the agreement combined with a significant breakdown in collaboration from a long-time external partner required that we take firmer action to advocate for our members.”

The company goes on to say that it is “fully mobilized on this matter with the support of legal professionals,” adding that it will share further updates when it’s legally allowed to.

The saga continues

It’s the latest chapter in an ongoing saga that has generated considerable stress and frustration within the travel trade community.

For background: travel advisors earn rewards on their Transat bookings, including travel packages, coach tours, cruises, flights, accommodations and car rentals.

These rewards, in the form of dollars, are then loaded directly onto BonBon TruCash Visa cards.

But for some time now, as PAX has previously reported, many advisors haven’t been able to access their money due to their Visa cards being blocked.

READ MORE: "Entirely beyond our control": Transat suspends BonBon program until further notice

It wasn’t a universal problem. According to trade forums on social media, some members, in recent months, were finally able use their Visa cards after several months of unsuccessful attempts. Others, however, faced ongoing difficulties accessing their funds.

Shortly after PAX published its first report about the problem, several advisors emailed us to say that their cards had been malfunctioning for months.

The situation became even more frustrating as agents were paying monthly fees for a service they could not use, in addition to receiving T4 statements for income they had no access to.

A “reoccurring issue”

TruCash, a subsidiary of TCA Group Of Companies, is the third-party entity that has supplied Transat’s cash incentive program since 2009.

In a previous statement to PAX, Transat acknowledged the technical difficulties advisors were experiencing with their TruCash Visa cards – particularly “point-of-sale issues and transaction delays.”

Speaking to PAX in person last April, Julie Sareault, commercial director at Transat, called the problem a “reoccurring issue.”

“We’ve been working with [TruCash] for 15 years now. It’s a long-standing relationship. We want to give them the benefit of the doubt that they’re going to be able to fix this,” Sareault said at the time.

“We know it’s [agents’] hard-earned money and we take this very seriously.”

Over the past year, TruCash took some steps to mitigate the problem, such as freezing the $1 monthly fee members pay to participate in the program.

But with Transat’s legal proceedings now in motion, it seems time has run out for the payment solution company.

Suspended until future notice 

It remains unclear how many travel advisors are affected by the issue, but in July, Transat sought to reset the process by issuing new cards to all 5,800 active members.

Ultimately, the BonBon rewards program was suspended in August until further notice after a contract between Digital Commerce Bank (DCBank) and TruCash was terminated.

In a statement issued at the time, Transat said the “situation is entirely beyond our control.”

READ MORE: “We take this very seriously”: Transat working with TruCash to fix issue with BONBON rewards

Travel advisors were emailed instructions from DCBank on July 24 on how to access their accumulated funds. They were given options such as transferring the funds or receiving a cheque issued by DCBank.

Transat emphasized that any new cards issued by DCBank are not new BonBon cards, clarifying that “it is no longer possible to earn BonBon rewards for new bookings.”

The fund recovery process hasn’t been smooth sailing either.

Online forums revealed a mixed response from agents: some maintained they never received instructions from DCBank, while others admitted deleting the email over doubts about its authenticity.

Even among those who kept it, some reported difficulty understanding or following the directions.

Agent files complaint with FCAC

One travel advisor affected by the BonBon fiasco is now taking matters into her own hands.

Ontario-based Lana Taits, a travel advisor with Universe Tour since 1998, and longtime Air Transat partner, recently filed a formal complaint against TruCash with the Financial Consumer Agency of Canada (FCAC).

In her letter, which PAX has viewed, Taits noted that she accumulated BonBon points in recognition of her professional efforts, but for six months, has been unable to redeem them, despite repeated requests for support.

While she was given “repeated assurances” that the issue would be fix, “no meaningful action has been taken,” wrote Taits, who was advised by Transat to recover her funds from TruCash directly.

To make matters worse, Taits says TruCash has removed all access to her online T4 slips and is refusing to provide her copies.

“This is deeply concerning, as these documents are legally required for tax reporting purposes,” Taits wrote in her complaint. “The withholding of such information raises serious questions about TruCash’s compliance with Canadian tax and financial regulations.’

She has requested the FCAC to investigate TruCash’s administration of the BonBon program and its failure to allow point redemption.

She’s calling for a review of TruCash’s practice of issuing T4 slips for unredeemable income and for the immediate release of T4 slips to ensure agents are not left without legally required tax documentation.

Taits is also requesting the FCAC ensure she is able to access and redeem the BonBon points she has rightfully earned.

“This has caused undue stress”

The situation is stressful not only for Taits but also for her daughter, Olena, who has been working tirelessly behind the scenes to help resolve the problem for her mother.

Olena recently reached out to PAX to bring attention to the issue and the strain it has placed on her family.

“My father has Parkinson's and has had to stop working. My mother relied on these points for pre-booked upcoming travel. This has caused undue stress for them,” Olena wrote in an email.

“I work full time with three small children and I am also studying. I have spent an excessive amount of time trying to resolve this mess created by TruCash and Air Transat.”

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