A B.C. couple is expressing anger over what they say is a banking error at one of Canada‘s largest banks.
Jason and Susan Lyne say money was being withdrawn monthly from a joint RBC account they share with their daughter without their authorization.
“They (RBC) could never answer the question ‘how can someone else’s account or how does someone access my daughter’s account?’” Jason told Consumer Matters.
The Lynes say their frustration with RBC started when their daughter noticed payments to Telus exiting their joint account. They say those payments had no association with them or their daughter. “It was basically $130 per time coming out that was not her payment. She’s never had a Telus account,” Susan said.
Susan says her daughter, who lives in Calgary, first noticed the Telus payment withdrawals in February 2023 and reported the incident to her local RBC branch in Alberta. “The advice from the teller was it’s not an RBC problem it was something she needed to take up with Telus because Telus was taking the money out of that account,” Susan said.
However, Susan says Telus had no record of her daughter ever being a customer and was advised to go back to RBC to resolve the matter. “Literally, for nine months she was ping-ponged between RBC and Telus,” said Susan.
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Jason says in February 2024, he intervened and approached his local RBC branch to get the payments stopped. The payments did stop. However, RBC told the Lynes in its internal appeal process, that there was no bank error made and only partially refunded them $393.75 due to the time lapse in reporting the incident.
RBC noted as indicated in the Payments Canada guidelines, clients have 90 days from the date of the withdrawal to report incorrect or unauthorized pre-authorized debit transactions to their financial institution from whom they may seek reimbursement. RBC also stated it had no records of Susan and Jason’s daughter visiting the branch or documentation of any interactions with the bank back in February of 2023.
The Lynes say they are still owed over $1,500.
“How are they allowed to be responsible for our money and then let that happen and then not make it right,” Jason asked.
Susan says she was informed verbally by an RBC branch manager another RBC customer had incorrectly entered information when setting up the Telus pre-authorized payments. Telus confirmed with Consumer Matters, through an initial investigation, that it has no record of the Lynes daughter being a customer with Telus.
Consumer Matters reached out to RBC asking about the unauthorized withdrawals. RBC stated in part:
“…While we cannot comment on this situation further due to client privacy, we can advise that we have shared our findings with our client directly and explained the reasons for our decision, based on a detailed investigation. RBC follows Payments Canada’s pre-authorized debit rules, including with respect to transaction disputes. We remind clients to review their statements each month and report any irregularities to us right away…”
Duff Conacher, co-founder of the non-profit Democracy Watch, says overall the system is rigged in favour of protecting the banks from accountability.
“Banks have set up electronic banking and they have set up the system to favour the banks. If they by mistake or through some scam or fraud there’s money taken out of your account that they are protected and you lose your money,” said Conacher.
Conacher’s advice to consumers is to file a complaint with the ombuds. “If the bank is not giving all of your money back and it was the bank’s fault for not protecting your money, at least the Ombuds will be able to increase the embarrassment level for the bank,” said Conacher.
“I would also go public with it and contact the media wherever you are in the country.”
Susan and Jason Lyne say they are planning the next steps which include leaving RBC and taking their money elsewhere.
“For an organization as big and as profitable as they are they could make this right very easily,” said Susan.
RBC recently reported a third-quarter profit of $4.49 billion, up from $3.86 billion a year earlier.
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