by jacqlemon » Fri Jan 09, 2009 07:23:17 PM
When we switched our mortgage to CIBC a few years ago, they offered us a chequing account with overdraft. We didn't really want it since we already both had overdraft on other accounts but we said okay. We used it once or twice, and then paid it and let it sit dormant.
The other day I went to the CIBC teller because I had a little extra money I wanted to put away in that account. She told me the account was closed. Anyway, I had her check it out and got a call from her today.
It turns out the account was closed and was put into collections in October 2008! I freaked-out. It turns out that this account was a "fee" account that that was accruing payments every month that was going into the overdraft. Since we never used the account and we hadn't received any statements in ages, we didn't know that it was in overdraft! They didn't send us a letter advising that the account was dormant and they were closing it - they didn't let us know it was in overdraft - they gave us no notice at all. All that was owing was $102.00. If they had of sent us a letter, we could have paid it off that very day.
We hold a mortgage with CIBC and I will never renegotiate a mortgage with them again for this. At any rate, what is the chance that it is already in Equifax and Transunion? Is there any possibility that we can pay them the $102 and any administration fee and ask that they remove it? Is it the banks responsibility to send you a letter to let you know they are closing an account and that there is money owing on it? This was a joint account and affects both of our credit. Prior to this, we both had excellent credit ratings, several major cards and two lines of credit. Our debt ratio is less than what we have in savings.
I am just sick over this and am unsure of how it will effect our credit rating - All for $102!!!! Any advice would be most welcome. Thanks.