CIBC, a major Canadian bank, has been overcharging its customers for years. Bank customers who used their investment services might be seeing some of that money returned to them in the near future. The bank will be reimbursing $73 million in fees charged to clients on certain investment accounts and mutual funds.
The Canadian press says the bank will also pay $3 million to the Ontario Securities Commission toward the protection of investors, and $50,000 to cover the costs of the investigation conducted. The issue was reported to the commission by CIBC itself, initiating the investigation into overcharging from 2002 to as late as January of this year. The OSC is not investigating any wrongdoing by the bank since the company agreed to the settlement without having to admit fault or agree to the results of the investigation.
Canada’s ‘big five’ banks, including CIBC, TD Canada Trust, Bank of Montreal, Scotiabank, and Royal Bank of Canada have attempted to increase bank fees for customers since the middle of 2015. These increases include monthly service charges and further limits to discounted accounts such as those for students and seniors, though backlash from customers has caused several of the institutions to backpedal.
These repayments to CIBC’s investment clients will have no effect on everyday banking customers.