CIBC agrees to pay $10 million to settle NSF class action
CIBC will pay $10 million to settle a class-action lawsuit over duplicate NSF fees charged on insufficient-funds transactions.Summary
The Canadian Imperial Bank of Commerce (CIBC) has agreed to pay $10 million to settle a class-action lawsuit alleging it charged multiple non-sufficient funds (NSF) fees on single rejected payments or bounced cheques between September 21, 2020 and May 31, 2024. The lawsuit, certified by the Ontario Superior Court of Justice on June 3, 2024, claims the bank applied duplicative NSF fees each time a payee re‑submitted the same already‑rejected payment, disproportionately affecting low‑income Canadians. CIBC denies liability but will deposit the settlement funds directly into eligible class members’ accounts if approved, with a hearing expected on October 19. The settlement follows similar agreements with other major Canadian banks and coincides with a new federal cap limiting NSF fees to $10, projected to save Canadians over $600 million annually.
(Source：Financial Post)