$7.5M CIBC Mortgages Prepayment Charge Class Actions Settlement (2023)

CIBC is Canada’s largest financial institution. The bank has branches across North America, Europe, Asia, Australia, Africa, South America, and the Caribbean. They offer a wide range of services, from personal banking to investment management. In 2005, CIBC became embroiled in a scandal where they charged customers fees without their consent. This led to a class-action lawsuit against them.

CIBC has announced that it has reached a settlement in a class-action lawsuit filed by Robert Christopher Jordan and Erin Sherry. This suit involved the calculation of certain prepayment charges on mortgages entered into across Canada, except Quebec. The mortgagees who paid this charge are eligible to receive up to $7.5 million in compensation.

According to the 2005 settlement, CIBC incorrectly calculated the interest rate for the payment charge, causing them to overcharge their customers. CIBC denies the entire allegation but agrees to compensate affected customers who used their mortgage services from 2005 onward.

Can I join the settlement?

• Anyone who used CIBC to pay their mortgage from 2005 onward
• All Canadians, except Quebec citizens, are eligible for this settlement.
• Fill out the claim form before May 21, 2023.

Proof Required

To get the claim money, members need to provide proof in the form of documents, which are listed below:

1. Document showing your mortgage’s issue date.
2. For how long did you use CIBC Mortgage Service during that period?
3. Document showing the date your mortgage was prepaid.

Benefits

The amount that each affected person can receive from this settlement varies by case, but the lowest-income class member can receive $225 CAD. Unclaimed money from this settlement will be donated to The Law Foundation of Canada (60%) and The Law Foundation of British Columbia and Ontario (40%).