UPDATE: Residual Settlement Compensation Cheques will be issued Mid-December 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.
The Settlement
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.
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.