by Alessandra Micieli
As of next year, TD Bank will be responsible for distributing Aeroplan miles credit cards.
The agreement came out Monday morning with a 10-year minimum contract underlining that TD will buy half of CIBC’s credit card profile in 2014. Also, $140 million will be spent collectively for marketing purposes, according to the Globe and Mail.
Kevin Dove, head of external communications for CIBC was unable to comment on the matter.
Ken Whitehursp, executive director for the Consumer Council of Canada said that CIBC customers will have to decide if the deal will affect the way they bank with the organization.
“They’ll have to decide whether or not they value their CIBC cards,” said Whitehursp.
Consumers council of Canada don’t know how the new deal will affect people’s contracts with the bank if they decide to switch to another branch. However, Whitehursp advices customers to think about consumer benefits.
“If you have an affected card, you should review carefully whether or not you value the benefits,” said Whitehursp.
Ashish Arya, 22, a second-year business management student at Humber College thinks that TD shouldn’t steal all the lime light from CIBC. He said the deal should be shared among different banks, and not just one.
“TD should regulate something that all other banks should use,” said Arya. “
Arya also said that the new deal might hurt business for CIBC in the long run.
“It’s a big setback for CIBC because they (customers) will switch over to TD.”