CIBC will pay $19.5 million to settle a class-action lawsuit by Visa credit cardholders over fees for foreign exchange transactions.

In a court-approved deal, the bank said it will pay $16.5 million to settle all claims of the class members, including interest, plus $3 million to cover costs of the plaintiffs’ legal counsel.

CIBC said in a release it has not admitted any liability “and is settling to avoid further litigation with its cardholders.”

The Ontario Superior Court lawsuit alleged CIBC had charged its Visa cardholders undisclosed, inadequately disclosed or unauthorized fees or charges for debits and credits incurred on CIBC Visa accounts in a foreign currency.

Up to $13.85 million will go directly to class members, at least $1 million goes to the United Way on behalf of class-action members not included in the “final distribution group, and $1.65 million to the class proceedings fund of the Law Foundation of Ontario on behalf of the members of the class action.

Notice of the approved settlement is to be published across Canada in 28 newspapers. CIBC Visa customers can get more information at www.cibc.com or 1-800-465-4653.