NSF Fee Settlement
CIBC Announces Proposed Settlement in Class Action Over NSF Fees on PADs.
CIBC and law firm Koskie Minsky LLP have announced a proposed $10 million settlement in a class action over so-called "double-dipping" NSF fees — cases where the bank charged customers up to $45 twice for the same failed payment Koskie Minsky LLP. The case covers anyone who was hit with these fees on re-presented pre-authorized debit transactions between September 21, 2020, and May 31, 2024 Calgary Sun.
If a court approves the deal at an October 19, 2026 hearing, eligible customers will not need to file a claim. CIBC will use its own records to find affected accounts and deposit the money directly Chatham Daily News.
How a $45 Fee Became a $10 Million Lawsuit
A pre-authorized debit (PAD) is when a company — like a gym or a utility — pulls money from your bank account on a set schedule. If your account is empty, the bank blocks the payment and charges a non-sufficient funds (NSF) fee. CIBC typically charged $45 for this Investment Executive.
The problem: if the merchant tried to collect the same payment again a few days later and the account was still empty, CIBC charged a second $45 fee. Plaintiffs argued that CIBC's own contracts never clearly allowed this "double-dipping," and that it broke consumer protection laws Koskie Minsky LLP. The case was certified as a class action by the Ontario Superior Court of Justice on June 3, 2024 The Whig.
CIBC Is One Bank in a Long Line of Defendants
This case is not an isolated fight. Koskie Minsky has been working through Canada's biggest banks one by one. It already secured a $15.9 million settlement from TD Bank and $10.45 million from Scotiabank. Royal Bank of Canada paid $7.05 million Global News.
CIBC has not admitted any wrongdoing. The bank framed the $10 million payout as a way to avoid further litigation costs rather than an admission that it did anything wrong Canada Newswire. This is standard in large class action settlements.
Federal Government Stepped In and Capped the Fees
The lawsuits drew national attention and helped push Ottawa to act. Canada's 2024 federal budget announced a plan to cap NSF fees at $10 and ban banks from charging multiple fees for one re-presented transaction Government of Canada. Those rules officially took effect on March 12, 2026.
The government estimates the $10 cap will save Canadians roughly $4.1 billion over the next decade Government of Canada. Anti-poverty group ACORN Canada called the old fees "catastrophic" for people living paycheck to paycheck, arguing the charges effectively punished the poorest customers the hardest Yahoo Finance Canada.
What Eligible Customers Can Expect to Receive
The exact number of CIBC customers in the class has not been finalized publicly. But comparable settlements at TD and RBC involved between 105,000 and 172,000 members Ontario Superior Court. Based on those cases, individual payouts are expected to range from roughly $25 to $88, depending on how many fees a customer was charged Global News.
The court hearing on October 19, 2026 will decide whether the settlement gets final approval. If it does, CIBC will deposit funds automatically — no paperwork required from customers Fort McMurray Today.
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