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. |
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