Canadian Imperial Bank of Commerce [CIBC] review: Credit card

Subject: Formal Complaint Regarding Inappropriate Issuance of Credit Card to Vulnerable Young Adult

Dear CIBC Customer Care,

I am writing to file a formal complaint regarding the conduct of a staff member at your branch who approved and issued a credit card with a $2,000 limit to my 19-year-old autistic son when he attended the branch simply to open a bank account.

At the time, my son had never banked with CIBC before. He had only just started his first job and had not yet even received his first paycheck. CIBC therefore had no banking history, income records, or spending information on which to reasonably assess his ability to manage or repay credit.

My son is autistic and has significant difficulty understanding money management, debt, and financial consequences. Despite this, your employee approved him for a credit card with a substantial limit during what should have been a straightforward bank account-opening appointment. No concerns appear to have been raised regarding his age, lack of credit history, lack of established income, or his understanding of the financial product being offered.

Within three weeks, the card reached its limit twice. The first time, our family paid off the balance in full and physically removed the card from his possession in an effort to prevent further debt. Unfortunately, the card had already been saved digitally and additional charges were made. He is now approximately $2,000 in debt with little understanding of how this occurred or the long-term consequences.

I find it deeply troubling that a vulnerable young adult with no banking history and no demonstrated financial capacity was encouraged or permitted to take on this level of unsecured debt. I believe CIBC failed in its duty to lend responsibly and failed to exercise appropriate care when dealing with a potentially vulnerable customer.

I am requesting the following:

A full investigation into the circumstances surrounding the issuance of this credit card;
A review of whether proper lending and suitability procedures were followed;
Immediate assistance in addressing and resolving the outstanding debt;
Consideration of reversing or forgiving the balance given the circumstances;
Assurance that additional safeguards and staff training will be implemented to prevent similar situations involving vulnerable individuals in the future.
I would appreciate a written response within 10 business days outlining the steps CIBC intends to take to resolve this matter.

Thank you for your prompt attention to this serious concern. I hope CIBC will treat this matter with the care and responsibility it deserves.

Sincerely,
Diane Kelsey