Why you should closely monitor your bank account
July 6, 2017
I love online banking because I like to visit my money every day to make sure it’s still all there. So imagine my surprise when the RBC account I share with my mother and sister went within a couple of days from half a million dollars in arrears to a balance of +$500,000!
My sister discovered the deficit initially when in late May she tried to take out a small amount of cash for my mother and she was locked out of the account.
In fact, in mid-May at our request CIBC Investors Edge had processed a transfer of $512,000 from the RBC account to our CIBC investment account. This was the proceeds of sale from my mother’s condo. But then CIBC initiated a second transfer of the exact same amount on May 29th and since there was only a few thousand dollars in the RBC account to pay monthly bills, we were left with a huge negative balance.
When I contacted CIBC, our IE representative told us that as a result of “a bank error” thousands of May transfers into CIBC IE were duplicated and that the problem would be rectified within a day. Meanwhile, RBC said not to worry, because the second transfer out would be sent back and the negative balance in the account would be reversed as we do not have overdraft protection. However, just to make sure I was advised to notify any vendors with automatic withdrawals that their cheques may bounce temporarily.
That occurred within hours and our RBC account was unlocked. But the next day CIBC IE also “fixed” the problem by transferring $512,000 back into the RBC account, leaving us with a hefty, unwarranted surplus! Much as I was tempted to blow town and take an around-the-world cruise, I dutifully reported the new error to our CIBC IE representative. He said the second mistake would be quickly rectified.
Shortly after, I also got a call from the CIBC Director of Executive Client Relations apologizing for the inconvenience and assuring me the $512,000 erroneously deposited to our account would be out of the RBC account on Friday June 2nd. It took until June 6th for the extra $512,000 to disappear.
In spite of our conversation I still can’t figure out how similar mistakes possibly involving thousands of clients were never communicated to clients up front or investigated by the mainstream media. I was told CIBC had no idea there had been a computer glitch until their clients started reporting the mistakes.
This comedy of errors was reversed in a few days and the only residual effect that I am left with is a great story. But it could have been much worse if I wasn’t able to track the errors online and quickly make the necessary calls to understand and correct the errors. And it was also time-consuming and embarrassing to have to make multiple calls and stop payment on the monthly payment to my mother’s nursing home.
So the moral of the story is: Check your recorded bank account transactions frequently either in person or online. If something looks wrong it probably is. The sooner you intervene and get it fixed, the less chance there is that an error will go unnoticed, affecting both your cash flow and your credit rating.
|Written by Sheryl Smolkin|
|Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.|