Case name

Mortgage Prepayment Fees – Quebec Class Action

Quebec Superior Court file #



Plaintiffs allege that when mortgage prepayment charges exceed 3-months interest, Class Members paying the Interest Rate Differential (“IRD”) suffer lesion within the meaning of article 2332 of the Civil Code of Quebec (“CCQ”). The penalty in the form of the IRD is also abusive pursuant to articles 1437 and 1623 CCQ and abusive under section 8 of Quebec’s Consumer Protection Act (“CPA”);

This class action seeks the reimbursement of the amounts overpaid by Quebec Class Members to Defendants on account of abusive mortgage prepayment charges, as well as punitive damages for the exploitation of Quebec consumers;

Proposed Class


All natural persons resident or domiciled in Quebec, who, since May 31st, 2015, had a hypothecary loan and/or a collateral hypothec with any of the Defendants and who paid a mortgage prepayment charge in an amount that exceeds three months of interest as a result of paying off their mortgage early;

CIBC Class:

All natural persons who, since October 17, 2008, paid to Defendants CIBC or CIBC Mortgages Inc. (or to any of their affiliates) a mortgage prepayment charge in an amount that exceeds three months of interest when either entirely or partially paying off a hypothecary loan or a collateral hypothec on a property located in the province of Quebec;

Remedies sought for consumers

Compensatory damages in the amounts paid in excess of 3-months of interest and punitive damages in the amount of $1000.00 per Class Member.


On July 19, 2019, the Superior Court authorized this class action against CIBC only and dismissed the case against all the other Defendants. On August 20, 2019, the Plaintiffs appealed this decision and are asking the Court of Appeal to authorize the class action against all Defendants. A copy of the Notice of Appeal is available below.

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