April 28th, 2009 by Questions
My new employer wants to direct deposit my paycheque but I have been refused an account at the bank because I am in bankruptcy. What can I do?
Posted from: Alberta
April 29, 2009 at 10:26 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
When opening a deposit account, a financial institution must provide you with the following information in writing (either at or before the time the account is opened):
– A copy of the account agreement
– For an account that pays interest, the rate of interest on the account and how it will be calculated (this rule doesn’t apply to an account opened with a balance in excess of $150,000)
– All charges applicable to the account
– How you will be notified of any increase in those charges and of any new charges to the account
– The institution’s procedures if you have a complaint about any charges to the account
– The institution’s policies with respect to hold periods on deposits.
There is Federal legislation that stipulates a bank must open a basic account for you under most circumstances. For instance, you can open a personal bank account if you don’t have a job, or even if you have declared
bankruptcy. The only circumstance where the bank can refuse to open an account for us is if your bankruptcy was the result of illegal or dishonest activity.
In any of these situations, if the bank refuses to open an account for you, you can make a complaint. If you feel you presented proper identification to the bank and it
refused to open an account for you then follow these steps. First, ask the bank how you can make a complaint. All banks must have a way to handle complaints. Second, contact the Financial Consumer Agency of Canada (FCAC) to let us know about your situation. This Agency is part of the Government of Canada and is in place to make sure that banks follow specific federal laws that protect
consumers like you. If you need it their number is 1-866-461-3222.
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