My brother is overdrawn in his President's Choice Account a few thousand dollars and they sent a formal demand letter to get back the money. He deposited a couple NSF cheques and took out the funds thinking they were available since the bank does not put a hold on his cheques (those visa cheques got reject because they were overlimit). He said it will take him over a year to pay back the money since he spent the money already. What are his consequences if he cannot pay them back soon? I cannot offer him any advice so I turn to TERB. Can the back do repo or take his assets (his car, etc)? Thanks.
Overdrawn Pc Chequng Account Question For Experts
- Thread starter PurpleMonkey
- Start date
Ignoring the issue will only make it worse. He should go to a branch, talk to a manager or customer service rep, explain what happened, and offer to sign a loan note to repay the amount.
Worst case scenario, he takes out a 12 month unsecured personal loan at 10% and pays it back $100/month.
Semi-expert opinion.
Worst case scenario, he takes out a 12 month unsecured personal loan at 10% and pays it back $100/month.
Semi-expert opinion.
I believe it is unsecured. So in other words if he owes 10,000 (he owes less but that's just a bench figure) and he plans to pay 500 or more per month then he's okay? He's really afraid they will repo and take his car. I don't think he can deposit because he said the card just bounce back right out and says to contact the branch. He got a letter to send the overdrawn balance via bank draft or certified cheque to PC financial in Toronto. He hates talking to the bank people, he just wants to send them a bank draft every month until the balance is paid off then he'll call them to confirm.Razon said:
The problem is that he didn't know it was NSF until he found out the credit limit from his girlfriend's visas didn't cover the deposit amounts.thirdtime said:
He'll be happy to know he gets to keep his car and his household assets. So I guess the worse case scenario is that he'll be reported to collections and he'll have a messed up credit score?
He better talk to them quickly. They can sue him, then garnishee his wages or other accounts, give him a bad credit rating. He will find it difficult to open accounts with most of the major banks if they start to take action against him.
Smart thing is to call to make a repayment agreement or get a loan and that may sort the whole thing out.
Smart thing is to call to make a repayment agreement or get a loan and that may sort the whole thing out.
Fathomabove said:
Can they really do this? File a law suit against him or garnish his wages or other bank accounts? Even if he sends them a bank draft every month for repayment?
Over by NY city, some guy whos name is the same as another guys, got 5 million $ put in his bank account by mistake. He went to the bank and told them, they said NO, its yours.
So he starts to spend it, after blowing 2 million-gifts, loans, bad investments-the bank found out what really happen. They ask for the 2 million $ back, he didn't have it. So he gets arrested for grand theft and last I seen was still in jail.
This was a few weeks ago.
So he starts to spend it, after blowing 2 million-gifts, loans, bad investments-the bank found out what really happen. They ask for the 2 million $ back, he didn't have it. So he gets arrested for grand theft and last I seen was still in jail.
This was a few weeks ago.
A chartered bank in Canada cannot refuse to open an account if your credit is poor. They can refuse to grant you more credit but they cannot refuse to open a savings or chequing account. There are only a few reasons for them to (legally) not open an account for you.Razon said:
They cannot garnishee his wages at this point, but at some point they will be able to do that. To get to that stage they have to go to court and get a judgement against him. In the worst case they could force him into bankruptcy.
But...
He is willing to pay $500 per month, which is an acceptable repayment plan. For reference, if it were a line of credit they would demand only 3% per month and he is paying 5% so they should view that as acceptable. While they COULD go get that judgement they will probably CHOOSE to go along with a reasonable repayment plan if he proposes one and sticks to it. It's their choice, but they are in the business of banking, not in the business of filing lawsuits, so they would likely prefer a sensible plan to a lawsuit.
He needs to go and talk to them immediately and get them to AGREE to the repayment plan. They should becaues it is a reasonable one. His objective in this should be to secure a reasonable interest rate. No doubt right now they are charging him something like 22% per year interest. He should be able to negotiate 10% or 12%.
Your brother plainly has a money management problem. This is just the latest symptom. He plainly didn't have the money and yet he was spending it. Even if the cheques had cleared they were credit card cheques -- so that is still debt.
Your brother needs to stop living beyond his means. If he doesn't solve the underlying money management problem then he is not going to be able to stick to a repayment schedule and this is just going to get worse and worse.
The larger looming question is when your brother retires some day how does he propose to pay for that if he is continually in debt up to his ears with no savings?
But...
He is willing to pay $500 per month, which is an acceptable repayment plan. For reference, if it were a line of credit they would demand only 3% per month and he is paying 5% so they should view that as acceptable. While they COULD go get that judgement they will probably CHOOSE to go along with a reasonable repayment plan if he proposes one and sticks to it. It's their choice, but they are in the business of banking, not in the business of filing lawsuits, so they would likely prefer a sensible plan to a lawsuit.
He needs to go and talk to them immediately and get them to AGREE to the repayment plan. They should becaues it is a reasonable one. His objective in this should be to secure a reasonable interest rate. No doubt right now they are charging him something like 22% per year interest. He should be able to negotiate 10% or 12%.
Your brother plainly has a money management problem. This is just the latest symptom. He plainly didn't have the money and yet he was spending it. Even if the cheques had cleared they were credit card cheques -- so that is still debt.
Your brother needs to stop living beyond his means. If he doesn't solve the underlying money management problem then he is not going to be able to stick to a repayment schedule and this is just going to get worse and worse.
The larger looming question is when your brother retires some day how does he propose to pay for that if he is continually in debt up to his ears with no savings?
Who knows what will happen just now. We've always operated under the assumption that the banks and lenders were honest and straight up -- lately that doesn't seem to be the case.
From a purely honest standpoint, he should try to repay whatever money is outstanding and curtail his borrowing accordingly. But from the standpoint of operating on a par in the current system, who knows what is right or smartest??
When the banks and the lenders themselves prove to be crooks, what are the rest of us to think? I was floored that the Bank of Canada slashed it's interest rate last week. Europe and UK haven't done so, holding fast. And OZ has actually raised theirs recently, I think -- it's now at 7.5% or so (but don't quote me on that).
"Capitalism" and "Free Market Economy" here in North America has come to be synonymous with fraud and scamming. More's the bad for us and for legit business and investment here.
..c..
From a purely honest standpoint, he should try to repay whatever money is outstanding and curtail his borrowing accordingly. But from the standpoint of operating on a par in the current system, who knows what is right or smartest??
When the banks and the lenders themselves prove to be crooks, what are the rest of us to think? I was floored that the Bank of Canada slashed it's interest rate last week. Europe and UK haven't done so, holding fast. And OZ has actually raised theirs recently, I think -- it's now at 7.5% or so (but don't quote me on that).
"Capitalism" and "Free Market Economy" here in North America has come to be synonymous with fraud and scamming. More's the bad for us and for legit business and investment here.
..c..
As has been mentioned; they can commence legal action (freeze his other accounts, go after assets) or, if they may proceed with pressing fraud charges, if they feel he's trying to pull a fast one. He doesn't have to 'know' he was depositing NSF cheques, just that he should have known, to make it fraud.
The CIBC operates the PC Banking brand, and they are known for taking a hard-line on this sort of thing. It's in his best interest to contact them directly, and discuss options. Ducking them, is only more likely to make them take a hard approach.
Laz
The CIBC operates the PC Banking brand, and they are known for taking a hard-line on this sort of thing. It's in his best interest to contact them directly, and discuss options. Ducking them, is only more likely to make them take a hard approach.
Laz
it will go into collections and you will be getting a call from XYZ collection department. First it will go to in-house collection (CIBC Collections department), then it might be sold to a third party collection agency (D&A, TCR, etc).
From there, you if you make regular payments to your collection agency, they will not and cannot sue you.
But if you refuse to pay, then there might be a court order, which could result in a judgement.
Just slowly pay back collections department in monthly payments (whatever you can afford), you'll only get an R9 on your report.
if you dont want your credit report ruined, you refuse to pay collections even a single cent but take the risk of a judgement court order. its your call.
From there, you if you make regular payments to your collection agency, they will not and cannot sue you.
But if you refuse to pay, then there might be a court order, which could result in a judgement.
Just slowly pay back collections department in monthly payments (whatever you can afford), you'll only get an R9 on your report.
if you dont want your credit report ruined, you refuse to pay collections even a single cent but take the risk of a judgement court order. its your call.
