CIBC agrees to proposed class-action settlement over NSF fees
CIBC agreed to a $10‑million settlement over disputed NSF fees charged repeatedly on failed pre‑authorized debits.Summary
CIBC has agreed to a proposed $10‑million settlement over non‑sufficient funds (NSF) fees charged on failed repeated pre‑authorized debit transactions between September 21, 2020 and May 31, 2024. The class action alleges that charging multiple NSF fees for a single payment violated consumer protection laws and that "the burden of these duplicative NSF Fees falls disproportionately on low‑income Canadians." CIBC denies liability but agrees to deposit refunds directly into eligible customers’ accounts if the Ontario Superior Court approves the settlement in October. The settlement follows new federal rules that cap NSF fees at $10, ban multiple fees on the same transaction within two days, and prohibit fees when the shortfall is under $10.
(Source：Global News)