What Is the CIBC Settlement?
Canadian Imperial Bank of Commerce (CIBC) has agreed to a proposed CAD $10 million settlement over certain non-sufficient funds (NSF) fees charged to CIBC and Simplii customers. An NSF fee is charged when there is not enough money in an account to cover a payment or withdrawal.
CIBC is a major Canadian financial institution that provides personal and business banking, wealth management and other financial services. Simplii Financial is a division of CIBC.
Who Is Eligible?
For compensation, you must be a Canadian resident with a CIBC or Simplii personal deposit account opened before February 1, 2024.
Between September 21, 2020 and May 31, 2024, the account must have been charged a second $45 NSF fee on a pre-authorized debit 2 to 30 days after an earlier $45 NSF fee for a debit with the same merchant and amount, plus matching transaction code and description.
The qualifying second fee must have been charged by February 1, 2024 for CIBC customers or December 18, 2022 for Simplii customers. The account must still be open and able to accept deposits when payments are distributed.
How Much Money Can You Get?
Eligible customers are currently expected to receive approximately CAD $35.
The exact amount may change because the net settlement fund will be divided pro rata after court-approved legal fees, funding fees, expenses, administration costs and taxes are deducted.
Class Counsel plans to request approximately $2.77 million plus HST in legal fees, about $123,000 in disbursements and a $5,000 honorarium for the representative plaintiff. A court-approved litigation funder is also entitled to 7% of the settlement.
No Claim Form Is Required
Eligible customers do not need to submit a claim or provide proof.
CIBC will identify qualifying customers from its own records and deposit compensation directly into their CIBC or Simplii personal deposit account.
Customers identified for payment will receive a notice from CIBC.
Why Was There a Lawsuit?
The lawsuit alleges that CIBC breached its contracts with customers by charging multiple NSF fees on the same payment after it was re-presented.
CIBC denies wrongdoing and liability. The Court has not decided whether the bank did anything wrong.
What Is the August 31 Deadline?
August 31, 2026 is the deadline to opt out of the class action or object to the proposed settlement.
People who opt out will not receive settlement compensation but keep the right to pursue their own claims against CIBC.
People who object remain in the class but can tell the Court why they believe the proposed settlement should not be approved.
When Will Payments Be Sent?
There is no payment date yet.
The Ontario Superior Court of Justice will hold a settlement approval hearing on October 19, 2026. If approval becomes final, CIBC must begin distributing payments within 30 business days after the settlement’s effective date.
What Happens If You Do Nothing?
If you do nothing, you will remain in the class and be bound by the settlement and the Court’s orders.
About This Page
RecallRefunds.com is a consumer information site. We are not the Settlement Administrator, a law firm, CIBC, Simplii Financial or a government agency. This page summarizes a proposed class action settlement and is general information, not legal advice.