CIBC slapped with a $10M fine for repeated NSF charges
CIBC agreed to a $10 million settlement over repeated NSF fees on pre‑authorized payments, pending court approval.Summary
The Canadian Imperial Bank of Commerce (CIBC) does not admit liability but has agreed to pay a proposed $10 million settlement in a class‑action lawsuit concerning its practice of charging multiple non‑sufficient funds (NSF) fees on re‑presented pre‑authorized debit transactions between September 21 2020 and May 31 2024. The lawsuit, led by Koskie Minsky LLP, alleges that the fees violated consumer protection legislation and the bank’s customer contracts. Although the Canadian government later capped NSF fees at $10 for personal and joint accounts, the alleged conduct occurred before that rule took effect. If the Ontario Superior Court approves the settlement, CIBC will directly deposit compensation into the accounts of eligible class members, who will not need to submit a claim. Koskie Minsky has also pursued similar actions against other major Canadian banks.
(Source：Toronto Sun)