Pefferlaw’s only bank slated to close in October

By Mike Anderson

The CIBC has confirmed it will close its branch in Pefferlaw on October 13.

Located at 254 Pefferlaw Rd., the CIBC branch, which has a 24-hour ATM, is the town’s only bank.

According to CIBC, the branch is no longer profitable as most customers are now using telephone and online banking.

“The decision to close any of our banking centres is not taken lightly, and we carefully consider all options before making this decision,” said Trish Tervit, CIBC’s director of public affairs, in an email to The Post.

“We remain committed to meeting the needs of our Pefferlaw clients. While the majority of clients at our Pefferlaw branch are banking using digital options, our team will spend time with clients in the coming months to help them learn more about the convenient options that are available to them for their everyday banking and to help them through this transition.”

Tervit says the closure will not result in layoffs, as staff will be reassigned to other branches.

But with the nearest full-service CIBC branch located in Beaverton — a 15-minute drive — residents are understandably not happy.

Garry Harpley, one of the Pefferlaw Association of Ratepayers (PAR) founding members, disputes CIBC’s claim that more people use online banking.

“They’re using that as an excuse,” Harpley said.

“The average age of people in Pefferlaw is, probably, well over sixty; most of those people don’t use online banking.”

Harpley says the big banks make so much profit they should be forced to keep small-town branches, like Pefferlaw’s, open.

“When they phoned me and told me, they were closing it, and the reason is it’s just not profitable. It blew me away. These guys make so much profit; it’s a joke.”

“I asked them if there is going to be another source for seniors that live in town and that don’t drive. They said nothing.”

“They wouldn’t even entertain the idea of having an ATM in town. They wouldn’t even talk about that.”

Harpley adds the closure will hurt the town’s image.

“It’s a huge inconvenience. And it stigmatizes the town too. Here’s the town of Pefferlaw that’s growing like crazy, and we don’t even have a bank.”

According to Harpley, this isn’t the first time CIBC has tried to close the branch.

“We lobbied against it at least 10 or 12 years ago when they were going to pull it out, and they decided that they were going to leave it open.”

But he worries this time; the decision may be final.

“I don’t think they have the public interest at heart at all; nor the town’s,” he said.

“This town went through COVID and everything else and supported the bank. Then, suddenly, you get a slap in the face, and they claim it’s not profitable. I don’t think anybody is making more profits than the banks right now other than oil companies. They’re just pulling out because it’s not convenient for them.”

“The whole profit angle just doesn’t carry water. That dog ain’t going to hunt.”

Harpley thinks the bank is making a mistake and may regret its decision.

“We’re a small community, and we’re a tight-knit community. But we’re also a community that’s growing. If CIBC had enough patience to hang in for another two years, there are a lot of families moving in, and they are going to need banking. “

While York-Simcoe MP Scot Davidson admits getting the bank to change its mind may be a tall order, he’s encouraging residents to contact CIBC and voice their concerns.

“It is entirely CIBC’s decision where they choose to operate their branches. However, in-person banking remains essential in small, relatively isolated communities like Pefferlaw,” Davidson said in a media release.

“Pefferlaw has a vulnerable population that will be unable to use online banking or travel to a different branch in other communities. Online banking is also not viable for the many other residents who still do not have broadband access.”

“Small towns and rural communities like Pefferlaw need to be supported – not forgotten – by federally-regulated industries like telecoms and banks.”

Davidson’s release lists two CIBC managers that Pefferlaw residents can contact:

Deborah Rowe at Deborah.rowe@CIBC.com or 416-586-7019.

Davina Ramnarine at Davina.Ramnarine@cibc.com or 416-309-7956.