At least 52,200 British Columbians could qualify for refund cheques from CIBC (Canadian Imperial Bank of Commerce) if a newly certified class-action lawsuit succeeds, says Kieran Bridge, a lawyer involved in the case.
Erin Sherry of Victoria is the representative plaintiff in the case. She wanted out of a CIBC mortgage when her marriage ended. CIBC charged her $47,869 in fees because she was only two years into a 10-year mortgage and interest rates had fallen between when Sherry took out the mortgage and when she wanted to break it.
"The mathematical formula that the bank used is improper," Bridge said. "If an appropriate formula was used then the penalty would have been less."
All those who obtained mortgages with CIBC Mortgage Inc., through its FirstLine Mortgages and President's Choice brands, after mid-2005 are automatically part of the class action unless they choose to opt out.
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