CIBC mortgage prepayment fees $7.5M class action settlement

The Canadian Imperial Bank of Commerce (CIBC) has agreed to pay $7.5 million to settle a consumer class action lawsuit claiming the bank unlawfully hit mortgage borrowers with prepayment fees. 

Class members include all those individuals who meet all of the following criteria:

• Have or had a mortgage with CIBC from 2005 onward
• The mortgage was for a residential property
• Prepaid for all or part of their mortgage
• Paid a prepayment fee charged based on an interest rate differential 
• Live in Canada in a province other than Quebec

The CIBC mortgage prepayment fee class action lawsuit was filed by Ontario residents Robert Christopher Jordan and Paulina Danao and British Columbia resident Erin Sherry. These individuals state they are mortgage borrowers with CIBC and tried to prepay some or all of their mortgage payments. They argue that in this prepayment process, they were charged an unlawful fee. 

Allegedly, they were charged a “prepayment fee” charged based on what is described as an interest rate differential. The CIBC mortgage prepayment settlement website explains that “an Interest Rate Differential compares the prevailing interest rates at the time of borrowing and at the time of prepayment” and charges customers a fee based on that difference. 

However, the borrowers argue CIBC’s practice of charging this fee is unlawful. In particular, they believe the bank is not legally allowed to charge a fee based on an interest rate not applicable at the time that the mortgage was taken out.

CIBC does not admit any wrongdoing in response to these claims, but has agreed to settle with borrowers in the interest of avoiding the costs and risks of continued litigation.

Each class member will be eligible to receive a settlement benefit of around $224, though that amount may change based on the number of valid claims submitted. Settlement benefits will be distributed after attorney fees and costs, administration expenses and representative plaintiff awards have been allocated.

A deadline to opt out of or object to the CIBC mortgage payment class action settlement is not available.

Class members who wish to receive benefits from the CIBC mortgage payment class action settlement must submit a valid claim by May 21, 2023. 

Who’s Eligible

Individuals who meet all of the following criteria:

• Have or had a mortgage with CIBC from 2005 onward
• The mortgage was for a residential property
• Prepaid for all or part of their mortgage
• Paid a prepayment fee charged based on an interest rate differential 
• Live in Canada in a province other than Quebec

Potential Award

$224

Proof of Purchase

No proof of purchase applicable

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

05/21/2023

Case Name

Jordan, et al. v. CIBC Mortgages Inc., Case No. 5303/11CP, in the Ontario Superior Court of Justice File

Sherry, et al. v. CIBC Mortgages Inc.,  Case No. S116769, in the Supreme Court of British Columbia Vancouver Registry

Final Hearing

N/A

Settlement Website

CIBCPrepaidMortgageSettlement.com

Claims Administrator

CIBC Prepaid Mortgage Settlement
c/o RicePoint Administration Inc. 
PO Box 3355
London, ON N6A 4K3
info@CIBCprepaidmortgagesettlement.com
888-886-7175

Class Counsel

Alex Dimson
Jared S Rosenbaum
SISKINDS LLP

Defense Counsel

Luciana Brasil
Conall Kelly
BRANCH MACMASTER LLP