Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeBankingCIBC agrees to pay $10 million to settle NSF class actionA fee cap imposed by the Federal government this year is expected to save Canadians more than $600 million You can save this article by registering for free here. Or sign-in if you have an account.If the settlement is approved, CIBC will deposit the funds directly into the bank accounts of eligible class members. Photo by Christopher Katsarov Luna/BloombergThe Canadian Imperial Bank of Commerce has agreed to pay $10 million to settle a case over how the lender charges depositors who attempt to make payments without sufficient funds in their accounts.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe proposed settlement of the ongoing class action was announced on Thursday by both CIBC and Toronto-based law firm Koskie Minsky LLP. A hearing to approve the agreement is expected to take place on Oct. 19.If the settlement is approved, CIBC will deposit the funds directly into the bank accounts of eligible class members. While the bank has agreed to pay, it “has not admitted liability and denies liability,” the statement on Thursday said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againSimilar settlements have been reached with Royal Bank of Canada, Toronto-Dominion Bank and Bank of Nova Scotia in the past. Scotiabank agreed to pay $10.45 million in March, RBC agreed to pay $7.05 million in 2025, while TD agreed to pay $15.9 million in 2023.The allegation against CIBC is that the bank charged multiple NSF (Non-Sufficient Fees) on a single rejected payment or bounced cheque, according to a court document filed in 2022, which is when the legal proceedings began against the bank.The charge occurs when a depositor makes a payment or issues a cheque without sufficient funds in the bank account. The “first and only lawful charge is applied when the payee attempts to collect and CIBC rejects the payment,” it said.“However, when subsequent attempts are made by the payee to process the same, already rejected payment or cheque, CIBC charges a duplicative NSF fee each time,” the document said. “The burden of these duplicative NSF fees falls disproportionately on low-income Canadians, who are more likely to maintain low bank account balances.”The class action took issue with these kinds of charges that took place between Sept. 21, 2020 and May 31, 2024, the statement on Thursday said. The class action was certified by the Ontario Superior Court of Justice on June 3, 2024.In March the Government of Canada announced a $10 cap on NFS fees down from as high as $50.“With over one out of three Canadians incurring an NSF fee annually, this measure addresses a significant financial burden that disproportionately affects those living paycheque to paycheque,” the government said in a statement on March 12.It also said that consumers will not be charged an NSF fee more than once within a period of two business days for the same deposit account. In addition, no NSF fee may be charged when the overdraft amount on the account is less than $10.The cap is expected to save Canadians more than $600 million, the federal government said. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.