Two actions (Jordan v CIBC Mortgage Inc. and Sherry v CIBC Mortgage Inc., together the “Class Actions”) were brought against the defendant CIBC Mortgages Inc. (“CIBC”) in connection with the calculation of certain prepayment charges on mortgages across Canada, excluding Quebec. The Class Actions apply to CIBC mortgages as well as mortgages through related entities such as Firstline Mortgages and President’s Choice Financial.
Persons residing in Canada, except persons residing in the provinces of British Columbia and Quebec, who: (i) were or are mortgagors under mortgages issued by CIBC as mortgagee from 2005 onward on residential properties located in Canada; (ii) prepaid all or part of those mortgages; and (iii) in so doing paid a prepayment charge based on an Interest Rate Differential (“IRD”). An Interest Rate Differential compares the prevailing interest rates at the time of borrowing and the time of prepayment;
(this group of individuals is known as the “Ontario Class”)
Persons resident in British Columbia who (i) were or are mortgagors under mortgages issued by the defendant as mortgagee, (ii) prepaid part or all of the principal amounts secured by those mortgages from 2005 onwards; and (iii) paid a prepayment charge;
(this group of individuals is known as the “British Columbia Class”)
The Ontario Class and the British Columbia Class are defined collectively as the “Class Members.”
*Excluded Persons are the Defendant CIBC Mortgages Inc. (“CIBC”) and its subsidiaries, affiliates, officers, directors, senior employees, legal representatives, heirs, predecessors, successors, and assigns.
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.
After deduction of Class Counsel Fees and Administration Expenses, the balance of the Settlement Funds (the “Net Settlement Amount”) will be distributed to Class Members in accordance with the Distribution Protocol.
Each Class Member who files a valid, eligible claim will receive a portion of the Net Settlement Amount calculated in accordance with the Distribution Protocol. The Distribution Protocol provides for a payment estimated at CAD$224.00 to each eligible claimant (but that amount may vary depending on the number of claims paid), in accordance with the following Chart that was developed with the assistance of an expert hired by Class Counsel:
Each Class Member’s entitlement to compensation will depend on when the Class Members borrowed money and prepaid their mortgage loan. This is because changes in interest rates over time mean that some Class Members did not have to pay the charges that are at issue in these class actions.
• If the Claimant’s date of loan origination or renewal intersects with the date of prepayment in a ‘no’ square, the Claimant will not be eligible to share in the Net Settlement Amount.
• If the Claimant’s date of loan origination or renewal intersects with the date of prepayment in a ‘yes’ square, the Claimant will be eligible to share in the Net Settlement Amount.
In the event that the total amount claimed exceeds the amount available for claims, each payment will be reduced on a pro rata basis. Once the allocations of all Class Members who have filed eligible claims have been ascertained, the Net Settlement Amount will be distributed.
In the event that any amounts remain undistributed after the distribution of the Net Settlement Amount (whether as a result of a failure to locate claimants, the failure of any Class Member to make a valid claim, or as a result of any tax refunds or any distributed cheques having become stale-dated or ineligible for redemption), those amounts will be distributed to eligible Class Members in accordance with the Distribution Protocol (if sufficient to warrant a further distribution) or allocated cy-près to the Law Foundations of Ontario and BC.Top
All claim forms received 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 visit the Claims Administrator’s website at https://www.cibcprepaidmortgagesettlement.com/ and select "File Claim". The website provides step-by-step instructions on how to file a claim. 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 Claims Administrator’s website or contact 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 4K3Top
The law firms of Siskinds LLP and Branch McMaster LLP are Class Counsel. Inquiries may be directed to:
100 Lombard Street, Suite 302
Branch MacMaster LLP
777 Hornby Street, Suite 1410