CIBC said today it will be refunding clients who were overcharged for certain borrowing transactions, some of which date back to 1993. These errors were identified as part of CIBC’s focus on governance and controls, and affect a small percentage of CIBC’s client base.

The total amount being paid by CIBC is approximately $27 million, including interest, to an estimated 200,000 clients and has been previously provisioned for.

The majority of refunds will go to clients who were overcharged for certain overdraft fees. Refunds will also be paid to clients for adjustments on mortgage charges, interest on business account overdraft facilities, or mortgage life insurance premiums. In cases where clients were undercharged, CIBC will not be seeking reimbursement.

“We apologize for any inconvenience this situation has created and want to assure our clients that the cause of these errors has been corrected,” said Raza Hasan, senior vice president, CIBC Mortgages, lending and insurance. “We have conducted a comprehensive review of all client accounts that might be affected, and are initiating refunds for these clients.”

Beginning April 28, most clients receiving a refund will be automatically refunded by electronic funds transfer or cheque, and notified by letter. Where clients no longer deal with CIBC or where up-to-date information is not available, CIBC will launch a client notification program advising clients and former clients on how to apply for a refund. Clients wanting more information can visit the bank’s Web site or contact CIBC’s dedicated customer service line at 1-877-248-4025.