CIBC Agrees to $10 Million Settlement Over NSF Fees

Canadian Imperial Bank of Commerce (CIBC) has reached a proposed $10-million settlement to resolve a class-action lawsuit concerning non-sufficient funds (NSF) fees. The lawsuit, filed in September 2022, alleges that the bank's practices disproportionately impacted low-income Canadians.

The settlement, agreed upon on June 24, 2026, after mediation, specifically targets NSF fees charged on failed pre-authorized debit transactions that were repeatedly attempted between September 21, 2020, and May 31, 2024. The class action contends that these repeated charges for the same transaction violate consumer protection laws and the bank's own agreements with customers.

If approved by the Ontario Superior Court, scheduled for a hearing in October, eligible customers will receive refunds directly deposited into their bank accounts. The lawsuit highlights instances where a single transaction, like a $7.90 subscription fee, could result in multiple $45 NSF fees if the payment attempt failed more than once due to insufficient funds. One plaintiff reportedly incurred $90 in NSF fees for a single $7.90 charge.

CIBC has denied any liability as part of the settlement agreement. The bank stated that while it is within its rights to charge NSF fees for insufficient funds, the lawsuit's core claim is that charging for each subsequent attempt of the same failed payment constituted a violation of customer agreements. The settlement aims to provide restitution to customers who may have been overcharged under these circumstances.