It doesn’t happen very often, but a bank can ‘un-bank’ you, telling you to take your business elsewhere and closing your accounts with them.
In one Ontario man’s case, he said he was shocked when it happened to him and he is still not completely sure why.
“There is no reason for this,” Tomas Nassab of Alliston told CTV News. “I’m not part of any criminal network. I’m not into fraud. I’m just an average guy trying to get through this Canadian world.”
Nassab said he has been a customer with the Royal Bank of Canada (RBC) for nearly 30 years. He told CTV News he has lines of credit, credit cards, and investments with RBC and oversees his parent’s accounts with the bank as well.
However, Nassab said when he was trying to move money in his investments, he encountered difficulties getting in-person service, so he complained to the bank.
“I made complaints to a couple of branch managers as well as a regional community manager and within seven days I was told all my accounts were being closed,” said Nassab.
Nassab told CTV News he received a letter from RBC stating in part, “We are no longer in a position to continue our banking relationship with you,” and was advised he would be given 30 days to close his accounts and move his money out of the bank.
“We’ve built a great portfolio and always treated the bank with respect, but expected adequate service... To be removed completely with zero explanation, it’s very disappointing,” Nassab said.
Nassab said he appealed to RBC in hopes to have the decision overturned.
“I’d love for this to be reversed. I’d love for some kind of clarity of the reasons and better customer service at all levels of banking.”
When CTV News reached out to RBC on Nassab’s behalf, a spokesperson said in a statement, “A client or the bank may choose to end a banking relationship. For its part, RBC makes such a decision only after a thorough review of the circumstances. If the bank does decide to end a banking relationship, we work with the client through the transition period and provide them with time to make alternate banking arrangements.”
“While we are unable to comment on the specifics of this particular situation, we can share that decisions regarding client relationships are never made lightly.”
Nassab told CTV News he felt his accounts shouldn’t have been closed because he complained about customer service.
“The customer service is getting so poor that even if you make reasonable tempered complaints, they’re ready to make that move as a stop gap measure to get rid of you,” he said.
Reasons banks could close accounts include suspected money laundering, fraud policy violations, or abusive or disrespectful behaviour.
If the decision is made to end the relationship, the bank does not have to explain the reason behind it. However, they do have to give former clients enough time to move their money and investments.
If you feel you were wrongfully told by a bank that they will be closing your accounts, you can file a complaint with the Ombudsman for Bank Services and Investments (OBSI).
Have you been dropped by your bank? CTV News Toronto wants to hear from you.
Email us at torontonews@bellmedia.ca with your name, general location and phone number in case we want to follow up. Your comments may be used in a CTV News story.
