🔥 Trending CIBC Agrees to $10 Million Settlement in NSF Fee Class Action Lawsuit

The CIBC Non-Sufficient Funds (NSF) fee class action settlement concerns a lawsuit against the Canadian Imperial Bank of Commerce (CIBC) regarding fees charged for re-presented pre-authorized debit (PAD) transactions ¹⁵.

Background of the Lawsuit

The class action, led by plaintiff Sarah Louise Campbell, challenged CIBC's practice of levying NSF fees on PADs that were initially rejected due to insufficient funds and then re-presented for payment ⁵. The lawsuit specifically covers the period between September 21, 2020, and May 31, 2024 ¹⁵.

The Proposed Settlement

CIBC has agreed to a proposed settlement of $10 million to resolve the class action lawsuit ¹²³⁹. This settlement aims to compensate individuals who were charged these specific NSF fees during the defined period.

Key Details of the Settlement

• Settlement Amount: CIBC will pay $10 million ¹²³⁹.
• Affected Period: The class action covers NSF fees charged on re-presented pre-authorized debit transactions between September 21, 2020, and May 31, 2024 ¹⁵.
• Legal Representation: Koskie Minsky LLP is jointly announcing the proposed settlement with CIBC ⁴.
• Purpose: The settlement seeks to address the claims that CIBC improperly charged NSF fees on these re-presented transactions.

It is important to note that this specific settlement pertains to NSF fees. CIBC has been involved in other class-action settlements, such as one concerning "trailing commissions" on mutual fund investments, which involved an $11 million settlement approved by the Ontario Superior Court ⁶¹⁰, and another for $26 million for trailing commissions paid to discount brokers ⁸. However, the $10 million settlement discussed here is specifically for the NSF fee class action ¹².