Welcome to the Official Website for the CIBC Mortgages Prepayment Charge Class Action

DID YOU HAVE A MORTGAGE IN CANADA, EXCLUDING QUEBEC WITH CIBC, FIRSTLINE MORTGAGES OR PRESIDENT’S CHOICE FINANCIAL DURING OR AFTER 2005 AND PAID A PREPAYMENT CHARGE? YOU MAY BE ELIGIBLE FOR COMPENSATION.

 

In October 2011, a class proceeding was commenced in the Ontario Superior Court of Justice (the “Ontario Court”) against CIBC (the “Ontario Action”). Concurrently in October 2011, a class proceeding was commenced in the British Columbia Supreme Court (the “BC Court”) against CIBC (the “British Columbia Action”). 

 

The Class Actions challenged the validity of CIBC’s method for calculating mortgage prepayment charges, particularly the IRD formula. Prepayment charges can arise when borrowers pay off more of their mortgage than they are entitled to under their mortgage agreement.

 

The Settlement 

CIBC has agreed to pay the total amount of CAD$7.5 million in settlement of the Class Actions (the “Settlement”). The Settlement is a compromise of disputed claims and is not an admission of liability or wrongdoing by CIBC. The Settlement is subject to approval of the courts, and Class Members have a right to object to the Settlement. The Settlement provides for a payment estimated at CAD$224 to each claimant, depending on when Class Members borrowed money and prepaid their mortgage loan. In the event that the total amount claimed exceeds the amount available for claims then each payment will be reduced on a pro rata basis.

 

What are your options? 

 

ACTION

EXPLANATION

DUE DATE

Participate and Do Nothing

If the Settlement is approved by the Ontario Court and the BC Court, all Class Members will be bound by its terms. You do not have to do anything to stay in these Class Actions. If any benefits, including any settlement funds, become available for distribution to the Class, you will be notified about how to ask for a share. You will be legally bound by all orders and judgments of the Court, and you will not be able to sue the Defendant about the legal claims in these cases.

Provided the settlement is approved you must file a claim before the Claims Deadline in order to receive benefits.

 

You will be able to file a claim on this website.

 

Please monitor this website for updates on filing claims.

Participate and Object to the Settlement or Class Counsel Fees

If you wish to comment on or make an objection to the Settlement, you must deliver a written submission to Class Counsel at:

 

i) For residents in Ontario and the other provinces and territories, excluding British Columbia and Quebec

 

Siskinds, LLP

Attn: CIBC Mortgage Prepayments Class Action

100 Lombard Street, Suite 302

Toronto, ON  M5C 1M3

 

ii) For residents in British Columbia

 

Branch MacMaster LLP

Attn: CIBC Mortgage Prepayments Class Action

777 Hornby Street, Suite 1410

Vancouver, BC  V6Z 1S4

 

or to the Administrator via email at info@CIBCprepaidmortgagesettlement.com  or by mail at:

CIBC Prepaid Mortgage Settlement,

c/o RicePoint Administration Inc.,

P.O. Box 4454, Toronto Station A,

25 The Esplanade, Toronto, ON M5W 4B1

no later than January 23, 2022. Class Counsel will forward all such submissions to counsel for the Defendant and the Courts.

January 23, 2022

Exclude Yourself (Opt Out)

If you want to keep your right to sue the Defendant CIBC on your own over the claims in these cases, you need to opt out from these Class Actions. If you remove yourself, you cannot get any money or other benefits from this lawsuit and you will not be represented by Class Counsel.

 

To opt out of the class proceeding you must send a completed Opt-Out Form to RicePoint Administration Inc. via email at info@CIBCprepaidmortgagesettlement.com  or by mail at CIBC Prepaid Mortgage Settlement, c/o RicePoint Administration Inc., P.O. Box 4454, Toronto Station A, 25 The Esplanade, Toronto, ON M5W 4B1, no later than 5:00 pm Eastern Standard Time on January 23, 2022, (the “Opt-Out Deadline”). Those who opt-out will not be bound by the release in favour of the Defendant. You can access the Opt-Out Form here. No Class Members will be permitted to opt-out of the Class Proceeding after the Opt-Out Deadline without leave of the court.

January 23, 2022 (the “Opt-Out Deadline”)

PLEASE DO NOT CONTACT THE COURTS WITH INQUIRIES ABOUT THE CLASS ACTIONS OR THE SETTLEMENT. All inquiries should be directed to the Claims Administrator or Class Counsel.

CIBC is not responsible for this website or the administration of the settlement.  The Ontario Superior Court of Justice appointed RicePoint Administration Inc. as the administrator.  Any questions or concerns should be directed to RicePoint Administration Inc.