CIBC Mortgages Prepayment Charge Class Actions - Notice of Settlement Approval

News provided by

Siskinds LLP

Nov 21, 2022, 08:00 ET

LONDON, ON, Nov. 21, 2022 /CNW/ - This notice is directed to mortgagors under mortgages issued by CIBC Mortgages Inc. who reside in Canada, excluding Quebec, and who paid a prepayment charge calculated in accordance with an Interest Rate Differential (not simply 3 months interest) when they prepaid part or all of their mortgages from 2005 onward (the "Class Members").

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 entered into 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.

WHO IS AFFECTED
BY THE CLASS
ACTIONS?

The Class Actions affect the rights of all Class Members.

 

If you are a Class Member and you did not opt out, you are automatically included in the Class Actions and
do not need to take any further steps right now to participate.

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 is a compromise of disputed claims and is not an admission of liability or
wrongdoing by CIBC. The Settlement provides for a payment estimated at CAD$224 (but that amount
may vary depending on the number of claims paid) 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. The
Settlement agreement can be found in full at https://www.cibcprepaidmortgagesettlement.com/case-
documents.aspx

 

The Settlement was approved by the Ontario Superior Court of Justice and the Supreme Court of
British Columbia on October 19, 2022.

HOW DOES THIS
AFFECT ME?

Class Members who borrowed and prepaid on certain dates are eligible for compensation estimated at
$224, but that amount may vary depending on the number of claims paid. To claim compensation,
Class Members must submit a completed claim form no later than May 21, 2023 (the "Claims Bar
Deadline"). If you do not file a claim form by the Claims Bar Deadline, you may not be able to claim
money from the Settlement, and your claim may be extinguished.

WHERE CAN I
GET
MORE INFORMATION?

For more information about how to claim compensation, please see the long-form notice online at:
www.branchmacmaster.com/class_actions/cibc-mortgages-prepayment-penalty and/or
www.siskinds.com/class-action/cibc-mortgages-prepayment-penalty.

WHO IS CLASS
COUNSEL?

The law firm of Siskinds LLP represents Class Members in Ontario and the other provinces and
territories, excluding British Columbia and Quebec:

 

Telephone (toll-free): (416) 362-8334
Email: [email protected]
Mail: 100 Lombard Street – #302, Toronto, ON, M5C 1M3, Attn: CIBC Mortgage Prepayments Class
Action

 

The law firm of Branch MacMaster LLP represents Class Members in British Columbia:

 

Telephone (toll-free): (604) 654-2961
Email: [email protected]
Mail: 777 Hornby Street – #1410, Vancouver, BC, V6Z 1S4, Attn: CIBC Mortgage Prepayments Class
Action

This notice was authorized by the Ontario Superior Court of Justice and the Supreme Court of
British Columbia.

SOURCE Siskinds LLP

Organization Profile

Siskinds LLP

The Siskinds LLP class actions team has offices in London, and Toronto and Vancouver, and an affiliate office in Québec City. The team, comprised of 25 lawyers admitted to practice in Ontario, British Columbia, Quebec and New York State, act exclusively for plaintiffs and...