The Canadian Imperial Bank of Commerce (CIBC) has reached a proposed $10-million settlement in a class-action lawsuit concerning non-sufficient funds (NSF) fees. The lawsuit challenged CIBC’s practice of charging NSF fees on re-presented preauthorized debit transactions occurring between September 21, 2020, and May 31, 2024.

The settlement was announced on June 24 following mediation and does not include any admission of liability by CIBC. The class action, certified by the Ontario Superior Court of Justice in 2024, alleges that the bank unfairly imposed fees when it reattempted to process preauthorized debit payments that initially failed due to insufficient funds.

If approved by the court, the settlement will result in direct deposits to the bank accounts of eligible class members. A hearing to consider the settlement is scheduled for October 19. The resolution was reached in collaboration with Koskie Minsky LLP, the law firm representing the plaintiffs.