Personal Finance

CIBC is charging checking account holders a overdraft fee of $4 without account holders permission

  • Last Updated:
  • Jan 12th, 2020 10:28 pm
[OP]
Deal Addict
Jan 12, 2014
3193 posts
5699 upvotes
Laval

CIBC is charging checking account holders a overdraft fee of $4 without account holders permission

I just came from CIBC branch since I noticed that they were charging my mother a senior citizen $4.00 a month for a service fee for overdraft which she never asked for!

Their reasoning was that they use to charge this service as a per use, but now head office decided this year 2020 to just charge everyone the monthly fee and let them opt out if they want to ( supposedly they sent a letter, which she never received)!

This fee is for overdraft protection, is something my mother has never needed or used since opening her first bank account and I'm sure there are lots of other people especially seniors being charged this fee without them being aware of it!

check your statements
7 replies
Newbie
Apr 2, 2013
60 posts
18 upvotes
Fredericton
There was a recent change because the $5 pay per use fee is no longer offered in Quebec. I'm guessing it is because of some legal reason.
Deal Fanatic
Nov 22, 2015
5671 posts
5066 upvotes
Quebec only. Just have them remove the overdraft and reverse the fee
Deal Addict
Dec 12, 2009
4315 posts
1992 upvotes
Toronto
2Riskit wrote: I just came from CIBC branch since I noticed that they were charging my mother a senior citizen $4.00 a month for a service fee for overdraft which she never asked for!

Their reasoning was that they use to charge this service as a per use, but now head office decided this year 2020 to just charge everyone the monthly fee and let them opt out if they want to ( supposedly they sent a letter, which she never received)!
...
check your statements
Unless they are pre-billing for the service, it shouldn't show up on the first statement until the end of the month. Online CIBC is usually a couple of days behind and backdates service charges a day or two after month end to show up on the prior monthly statement when it is printed.
IOW one would not see the charge on a statement until early in FEB.
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Newbie
Jun 25, 2012
26 posts
13 upvotes
MONTRÉAL
I received a letter regarding to Overdraft Fee from TD couple months ago. I called them and was told this is for Quebec only because the legal reason. I checked with Desjardins, the FI for Quebec. They said the same thing, and told me they have overdraft protection from credit card (if there is no enough money in my Desjardins bank account, they will withdraw from credit card to avoid the NSF fee).
Deal Addict
Dec 25, 2017
1833 posts
1289 upvotes
tryitagain wrote: I received a letter regarding to Overdraft Fee from TD couple months ago. I called them and was told this is for Quebec only because the legal reason. I checked with Desjardins, the FI for Quebec. They said the same thing, and told me they have overdraft protection from credit card (if there is no enough money in my Desjardins bank account, they will withdraw from credit card to avoid the NSF fee).
So Desjardins gets a cash advance from your credit card to cover the excess?
Newbie
Jun 25, 2012
26 posts
13 upvotes
MONTRÉAL
Yes, I think that will be cash advance. This is why I re-activate my LOC and close checking account. Until now, LOC works very well, like checking account. Only one thing is I have to pay the interest, but it is less than the overdraft fee and cash advance. I just paid 2-3 months interest to LOC, which is few cents. I do not mind.

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