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Repayment Amount Incorrectly Calculated

Posted on Thursday, November 12, 2009 12:45 PM

A client applied for a $120,000 personal loan from her local branch in order to purchase a boat costing $140,000. The client was approved for the loan consisting of monthly payments of $615 (principal + interest) for 15 years with a $15,000 down payment. Nine months later, the client received a statement from the bank saying she owed more each month than what was initially agreed.

After reviewing the contract, the client noticed that monthly payments of $615 for 15 years totaled $110,000, not even...

Investor Incurred Additional Fees on a Group RESP Account

Posted on Wednesday, November 12, 2008 01:00 PM

The client had opened a group RESP for each of her two children with a scholarship plan dealer. After a year, she started experiencing administrative problems with the plans. The problems persisted and she was not able to get a clear explanation from the firm's telephone representatives. As a result of the problems, she incurred additional administrative fees and was unhappy with the firm. She complained to the firm and, not satisfied with its response, brought her complaint to OBSI.

In reviewing...

Divorced Partner Refused to Help Repay Joint Line of Credit

Posted on Monday, November 12, 2007 12:45 PM

The client and his now ex-wife had a joint unsecured line of credit with $8,800 owing when their marriage ended. Neither was willing to make any payments on the line. Before long, the bank's collection centre contacted the client. He told them to contact his ex-wife and said that he would not be making any payments.

Two months later, the client's exwife paid about 50 per cent of the outstanding balance and the bank removed her name from the line of credit. A few months after, the collection centre...

Payments Processing Scam

Posted on Monday, December 11, 2006 12:00 PM

The client was recruited by a company, via the Internet, to collect accounts receivable on their behalf. She would be sent cheques from Canadian companies to be deposited to her account. She would then wire 90 per cent of the amounts to designated third parties overseas, and keep 10 per cent as her collection fee.

The company gave her four cheques, written by companies, payable to her. All the cheques later turned out to be fraudulent.

Her account was charged for the unrecovered amount, resulting in...

Forged Signature on Lost Cheques

Posted on Saturday, December 10, 2005 12:00 PM

The client was shocked to discover that a cheque for $4,900 has been cleared through his account the previous month – and he didn't write it. He informed the bank immediately, which produced the original cheque. It was obvious that the signature was a forgery, and the client asked for the money back.

However, the bank refused, saying the client was to blame. He couldn't remember receiving the cheques for the account, or where they were stored, and the bank cited the account agreement which required...

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