A class action lawsuit against some of Canada’s largest banks was filed today in the Supreme Court of B.C. for backdating credit card interest charges. According to the claim, the Royal Bank of Canada, the Canadian Imperial Bank of Commerce, and the Bank of Montreal have been overcharging their credit card customers.

The suit was filed by Cheryl Dahl of Mission, B.C. and Donna Lewis of Vancouver. According to their lawyer, David Rosenberg, “If you don’t pay your credit card bill on time, interest is charged from the time of each purchase even though the bank doesn’t pay the merchant until many days later. The effect is that the bank is receiving interest on money it hasn’t lent, and is misrepresenting the interest rate.”

According to Rosenberg, this practice violates the Consumer Protection Act, the Trade Practices Act, and the Interest Act. Rosenberg is a Vancouver lawyer who, in 1998, chaired the B.C. government’s task force on bank mergers.


The action is brought on behalf of all persons who have incurred interest in the use of credit cards and seeks reimbursement for the interest that the banks have collected. If successful, the suit could force the banks to repay millions of dollars to their credit card customers.