Frequently Asked Questions
- What are these Class Actions about?
- Who is affected by the Class Actions?
- What settlement has been reached?
- Who is Class Counsel?
- When were settlement cheques issued?
- How is the Settlement payment calculated?
- Why did I not receive a cheque?
- I have moved. Can you please reissue my cheque?
- Why am I receiving a residual settlement cheque?
- What are these Class Actions about?
Two actions (Jordan v CIBC Mortgage Inc. and Sherry v CIBC Mortgage Inc., together the “Class Actions”) were brought against the defendant CIBC Mortgages Inc. (“CIBC”) in connection with the calculation of certain prepayment charges on mortgages across Canada, excluding Quebec. The Class Actions apply to CIBC mortgages as well as mortgages through related entities such as Firstline Mortgages and President’s Choice Financial.
Top - Who is affected by the Class Actions?
Persons residing in Canada, except persons residing in the provinces of British Columbia and Quebec, who: (i) were or are mortgagors under mortgages issued by CIBC as mortgagee from 2005 onward on residential properties located in Canada; (ii) prepaid all or part of those mortgages; and (iii) in so doing paid a prepayment charge based on an Interest Rate Differential (“IRD”). An Interest Rate Differential compares the prevailing interest rates at the time of borrowing and the time of prepayment;
(this group of individuals is known as the “Ontario Class”)
-and-
Persons resident in British Columbia who (i) were or are mortgagors under mortgages issued by the defendant as mortgagee, (ii) prepaid part or all of the principal amounts secured by those mortgages from 2005 onwards; and (iii) paid a prepayment charge;
(this group of individuals is known as the “British Columbia Class”)
The Ontario Class and the British Columbia Class are defined collectively as the “Class Members.”
*Excluded Persons are the Defendant CIBC Mortgages Inc. (“CIBC”) and its subsidiaries, affiliates, officers, directors, senior employees, legal representatives, heirs, predecessors, successors, and assigns.
Top - What settlement has been reached?
CIBC has agreed to pay the total amount of CAD$7.5 million in settlement of the Class Actions (the “Settlement”). The Settlement was approved on October 19, 2022.
After deduction of Class Counsel Fees and Administration Expenses, the balance of the Settlement Funds (the “Net Settlement Amount”) will be distributed to Class Members in accordance with the Distribution Protocol.
Each Class Member who files a valid, eligible claim will receive a portion of the Net Settlement Amount calculated in accordance with the Distribution Protocol. The Distribution Protocol provides for a payment estimated at CAD$224.00 to each eligible claimant (but that amount may vary depending on the number of claims paid), in accordance with the following Chart that was developed with the assistance of an expert hired by Class Counsel:
Each Class Member’s entitlement to compensation will depend on when the Class Members borrowed money and prepaid their mortgage loan. This is because changes in interest rates over time mean that some Class Members did not have to pay the charges that are at issue in these class actions.
• If the Claimant’s date of loan origination or renewal intersects with the date of prepayment in a ‘no’ square, the Claimant will not be eligible to share in the Net Settlement Amount.
• If the Claimant’s date of loan origination or renewal intersects with the date of prepayment in a ‘yes’ square, the Claimant will be eligible to share in the Net Settlement Amount.
In the event that the total amount claimed exceeds the amount available for claims, each payment will be reduced on a pro rata basis. Once the allocations of all Class Members who have filed eligible claims have been ascertained, the Net Settlement Amount will be distributed.
In the event that any amounts remain undistributed after the distribution of the Net Settlement Amount (whether as a result of a failure to locate claimants, the failure of any Class Member to make a valid claim, or as a result of any tax refunds or any distributed cheques having become stale-dated or ineligible for redemption), those amounts will be distributed to eligible Class Members in accordance with the Distribution Protocol (if sufficient to warrant a further distribution) or allocated cy-près to the Law Foundations of Ontario and BC.
Top - Who is Class Counsel?
The law firms of Siskinds LLP and Branch McMaster LLP are Class Counsel. Inquiries may be directed to:
Siskinds, LLP
Barristers & Solicitors100 Lombard Street, Suite 302
Toronto, ON M5C 1M3Alex Dimson
Jared S. RosenbaumTel: 416-362-8334
Fax: 519-672-6065
Email: [email protected]Website: www.siskinds.com/class-action/cibc-mortgages-prepayment-penalty/
Branch MacMaster LLP
Barristers & Solicitors777 Hornby Street, Suite 1410
Vancouver, BC V6C 1S4Luciana Brasil
Conall KellyTel: 604-654-2961
Fax: 604-684-3429
Email: [email protected]Website: www.branchmacmaster.com/class_actions/cibc-mortgages-prepayment-penalty/
Top - When were settlement cheques issued?
The distribution of payments to approved Settlement Class Members occurred in Mid August 2023 via regular mail.
Top - How is the Settlement payment calculated?
Your settlement payment has been calculated on a pro rata basis as stated in the Settlement Agreement.
Top - Why did I not receive a cheque?
If you did not receive a cheque, your claim was denied due to inapplicable dates. Therefore, you are ineligible to receive a settlement cheque. Unfortunately, you cannot cure your claim.
Top - I have moved. Can you please reissue my cheque?
Please contact the claims administrator to update your address and have your settlement compensation cheque reissued.
Top - Why am I receiving a residual settlement cheque?
A residual settlement cheque will be issued Mid-December as the BC and Ontario courts approved a larger entitlement amount per class member due to the excess funds remaining in the settlement account. Please make sure to cash your initial settlement cheque if it remains uncashed.
Top