Update: August 16, 2024
We are pleased to report that this Class Action against Haventree Bank (“Haventree”) has settled.
This lawsuit alleges, among other things, that Haventree breached the terms of its contracts with Settlement Class Members in connection with the involuntary and/or automatic renewal of certain mortgages, resulting in additional interest, costs and fees. Haventree denies any liability whatsoever and has not been found liable for any of the claims raised in this lawsuit. The Parties have instead agreed to a Settlement in order to avoid lengthy litigation (the “Settlement”).
On July 2, 2024, the Ontario Superior Court of Justice approved the Settlement on behalf of the Settlement Class. Under the Settlement, Haventree and its insurer will pay $1,500,000 to settle the lawsuit. This amount will be used to pay the successful Claims of Settlement Class Members as well as certain fees and expenses, including Class Counsel Fees in the amount approved by the Court.
Settlement Class Members may be eligible for a Settlement Payment, provided that they submit a valid and timely Claim. Payments to Settlement Class Members with Approved Claims will not exceed $5,000 per mortgage, but could be less than that amount per mortgage. This amount will be divided evenly between any Settlement Class Members with Approved Claims related to the same mortgage.
After satisfying all Approved Claims, any excess or remaining amount of the Settlement Amount will be donated to a cy-près recipient – a charitable organization – to be jointly agreed to by the Parties and approved by the Court.
Who can participate?
All persons in Canada (including their heirs, estates, executors, trustees or personal representatives) whose mortgages held by Haventree were involuntarily and/or automatically renewed, and who paid any amount of additional interest, costs, and fees as a result are each known as “Settlement Class Members” and are collectively the “Settlement Class.”
The deadline for submitting a claim is May 16, 2025
The period for submitting a Claim begins on August 16, 2024 and runs until May 16, 2025. During that period, you may make a Claim by filling out the Claim Form and submitting it to the Claims Administrator, by mail or email, on or before May 16, 2025. Please keep a copy of your completed Claim Form for your own records.
Email: info@haventreemortgagerenewalsettlement.ca
If you fail to submit a Claim Form on or before May 16, 2025, you will not be eligible to claim any distribution from the Settlement. Sending in a Claim Form late will be the same as doing nothing.
A copy of the Claim Form and other court documents can be found on the Settlement Website: Haventree Mortgage Renewal Settlement
Update: April 4, 2024 – a proposed settlement has been reached in this class action lawsuit. For more information on settlement benefits and deadlines, as well as your legal rights and options, please visit this website:
Under the proposed Settlement, Haventree and its insurer have agreed to pay an all-inclusive Settlement Amount of $1,500,000. Payments to Settlement Class Members with Approved Claims will not exceed $5,000 per mortgage, but could be less than that amount per mortgage. This amount will be divided evenly between any Settlement Class Members with Approved Claims related to the same mortgage.
Class Counsel will also seek the approval of an Honourarium of $15,000 for the Representative Plaintiff and Class Counsel Fees in the amount of $450,000 plus HST and disbursements (estimated to be approximately $49,000).
After satisfying all Approved Claims, the Honourarium, Class Counsel Fees, Administration Expenses, interest, and applicable taxes, any excess or remaining amount of the Settlement Amount will be donated to a cy-près recipient – a charitable organization – to be jointly agreed to by the Parties and approved by the Court.
The proposed Settlement must be approved by the Court to become effective. The Court will decide whether or not to approve the Settlement on Friday, June 28, 2024 at 10:00am EST virtually over Zoom at the Ontario Superior Court of Justice, 330 University Avenue, Toronto, ON M5G 1R7.
Update: a proposed class action commenced.
The proposed class action seeks damages for unlawful overcharging of interest and fees on automatically renewed Haventree Bank mortgages.
As plead, Haventree Bank has processed automatic renewals of mortgages without the knowledge, consent, or signature of mortgage borrowers, and has subsequently then charged the borrowers unlawfully high interest rates and fees.
Haventree Bank was created pursuant to an amalgamation and has operated as its own entity since 2018. Before that, operations (including the practice of mortgage lending) carried on under the name and entities associated with “Equity Financial Trust Company”.
The law firms of Landy Marr Kats LLP and McKenzie Lake Lawyers LLP have commenced the proposed class action against Haventree Bank.
If you are someone who has, or previously had, a Haventree Bank mortgage or mortgage product that was automatically renewed, please email us at haventreebankclassaction@lmklawyers.com