Canadians could get part of $10M CIBC class-action settlement
Eligible Canadians could receive a payout after CIBC agreed to a proposed $10-million settlement in a class-action lawsuit.
On Thursday, the financial institution and Koskie Minsky LLP announced that they had agreed to a proposed settlement amount in an ongoing class-action regarding non-sufficient funds fees (NSF fees).
The class action was certified by the Ontario Superior Court of Justice on June 3, 2024.
The allegations
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According to a court document, CIBC allegedly charged customers multiple NSF fees for a single attempted transaction.
As per allegations, the unlawful charge occurs after a CIBC customer makes a payment or issues a cheque without sufficient funds in their bank account. The first rejected attempt incurs the first NSF fee of $45. However, if a customer attempts the transaction once again, it’s alleged that CIBC duplicated the charges each time.
In one example in the claim, an Ontario plaintiff attempted a $7.90 PayPal payment that was declined due to insufficient funds, resulting in a $45 NSF fee. However, it alleges that the same payment was later processed and declined again, resulting in a second $45 fee for a single attempted payment. The court document alleges that the plaintiff never received any notice from CIBC of the charges.
The claim argues that CIBC’s customer agreement is meant to apply one NSF fee per “item,” but that the bank’s practice of charging additional fees on retry attempts contradicts that. In addition, CIBC allegedly violated the Consumer Protection Act for “unfair and deceptive practice.”
The court document alleges that CIBC “was unjustly enriched” by these acts. A 2021 report revealed that CIBC earned $797 million from Canadian customers in deposit and payment fees, which includes NSF fees.
The lawsuit also argues that the burden of multiple fees “falls disproportionately on low-income Canadians, who are more likely to maintain low bank account balances and more likely to use online vendors in lieu of credit cards.”
“CIBC has not admitted liability and denies liability,” reads the statement.
Are you eligible?
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You could be eligible if you have or had a personal deposit account with CIBC and were charged multiple NSF fees on a single payment made or cheque issued since Jan. 1, 2012.
How much could you receive?
Under the terms of the proposed settlement, CIBC has agreed to a proposed $10-million settlement. If approved, CIBC will directly deposit funds into the bank accounts of eligible class members.
What should you do next?
According to the website, you don’t need to “sign up” to file a claim if you’re eligible, as you will automatically be included as a class member.
A hearing will be held on Oct. 19, 2026, where the Court will decide whether to approve the proposed settlement. Visit the CIBC Duplicative NSF Fees Class Action website for more information.
In a separate class action, claims are now open for the CIBC Mutual Funds and Renaissance Mutual Funds settlement.