The Canadian Imperial Bank of Commerce has agreed to pay $10 million to settle a class-action lawsuit over its practice of charging multiple non-sufficient funds fees on re-presented pre-authorized debit transactions, according to Koskie Minsky LLP, the law firm representing the plaintiffs.
Details of the settlement
Koskie Minsky announced the proposed settlement on July 2, 2026. The bank does not admit liability but will pay millions to resolve claims that it violated consumer protection laws and its customer contracts. The class action was certified by the Ontario Superior Court of Justice in 2024.
The lawsuit focused on CIBC's practice of charging an NSF fee each time a billing company attempted to withdraw funds from a customer's account after an initial failed transaction. Between September 21, 2020, and May 31, 2024, customers faced multiple fees for the same insufficient funds situation.
Fee structure and regulatory changes
CIBC charges $10 for each NSF transaction on personal Canadian accounts. The federal government capped NSF fees at $10 for personal and joint accounts at federally regulated financial institutions, a change that took effect on March 12, 2026. Previously, some banks charged up to $50 per NSF fee.
Koskie Minsky has pursued similar class-action lawsuits against other major Canadian banks, including Bank of Montreal, Scotiabank, TD Bank, and Royal Bank. In a related case, Royal Bank of Canada was fined $4.25 million over consumer violations.
Compensation for eligible customers
If the court approves the settlement at a hearing scheduled for October 19, 2026, CIBC will directly deposit compensation into the bank accounts of eligible class members. Customers do not need to file a claim; the bank will review its records to identify those eligible and send them a notice.
“A hearing will be held on Oct. 19 where the court will decide whether to approve the proposed settlement,” the release said. “CIBC will review its records to identify all customers who are eligible for compensation. If you are eligible to receive compensation, you will receive a notice from CIBC. If the settlement is approved, you will not need to submit a claim – your compensation will be directly deposited in your CIBC or Simplii account.”
The settlement aims to compensate customers who were charged multiple NSF fees on re-presented pre-authorized debits during the specified period.
