DID YOU HAVE A MORTGAGE IN CANADA, EXCLUDING QUEBEC WITH CIBC, FIRSTLINE MORTGAGES OR PRESIDENT’S CHOICE FINANCIAL DURING OR AFTER 2005 AND PAID A PREPAYMENT CHARGE? YOU MAY BE ELIGIBLE FOR COMPENSATION.
You must submit your claim before the claims deadline of May 21, 2023
In October 2011, a class proceeding was commenced in the Ontario Superior Court of Justice (the “Ontario Court”) against CIBC (the “Ontario Action”). Concurrently in October 2011, a class proceeding was commenced in the British Columbia Supreme Court (the “BC Court”) against CIBC (the “British Columbia Action”).
The Class Actions challenged the validity of CIBC’s method for calculating mortgage prepayment charges, particularly the IRD formula. Prepayment charges can arise when borrowers pay off more of their mortgage than they are entitled to under their mortgage agreement.
CIBC has agreed to pay the total amount of CAD$7.5 million in settlement of the Class Actions (the “Settlement”). The Settlement was approved on October 19, 2022 and provides for a payment estimated at CAD$224 to each claimant (but that amount may vary depending on the number of claims paid), depending on when Class Members borrowed money and prepaid their mortgage loan. In the event that the total amount claimed exceeds the amount available for claims then each payment will be reduced on a pro rata basis.
How to submit a Claim
All claims for compensation from the Settlement must be received by the Claims Administrator no later than May 21, 2023.
The most efficient way to file a claim is to select the "File Claim" button above or at the top right corner of the page. In order to verify claims, the Claims Administrator will require certain information and supporting documentation, including: (a) the date that the Class Member’s mortgage was issued or most recently renewed;(b) the length of the mortgage term; and (c) the date that the Class Member’s mortgage was prepaid. Accordingly, Class Members should visit the Administrator’s website as soon as possible so that they have time to obtain the required documentation prior to the Claims Bar Deadline.
The Claims Administrator will also accept claim forms filed by mail or courier. To obtain a copy of the claim form, Class Members may print one from the Case Documents tab above or by contacting the Claims Administrator to have one sent by regular mail or email. Forms sent by mail or courier should be sent to:
CIBC Mortgage Prepayment Charge Class Actions Settlement Claims Administrator
CIBC Prepaid Mortgage Settlement
c/o RicePoint Administration Inc.
P.O. Box 3355, London, ON N6A 4K3
PLEASE DO NOT CONTACT THE COURTS WITH INQUIRIES ABOUT THE CLASS ACTIONS OR THE SETTLEMENT. All inquiries should be directed to the Claims Administrator or Class Counsel.