RBC customers outraged over partial refund after unauthorized withdrawals

A British Columbia couple is expressing frustration over what they claim is a banking error involving one of Canada’s largest financial institutions.

Jason and Susan Lyne allege that money was being withdrawn from a joint RBC account they share with their daughter without their authorization.

“They (RBC) could never answer the question, ‘How can someone else access my daughter’s account?’” Jason told Consumer Matters.

The Lynes say their issues with RBC began when their daughter noticed unauthorized payments to Telus being withdrawn from their joint account. According to them, neither they nor their daughter had any connection to the company. “It was $130 each time, and it wasn’t her payment. She’s never had a Telus account,” said Susan.

Susan explained that her daughter, who lives in Calgary, first noticed the withdrawals in February 2023 and reported the issue to her local RBC branch in Alberta. “The teller’s advice was that it wasn’t an RBC problem and that she needed to take it up with Telus, as Telus was the one taking the money,” Susan said.

However, Telus had no record of her daughter as a customer and advised her to return to RBC to address the issue. “For nine months, she was bounced back and forth between RBC and Telus,” Susan explained.

In February 2024, Jason stepped in and visited his local RBC branch to stop the payments. While the payments were halted, RBC later informed the Lynes through its internal appeal process that no banking error had occurred. The couple received a partial refund of $393.75 due to a delay in reporting the issue.

RBC cited Payments Canada guidelines, which require clients to report incorrect or unauthorized pre-authorized debit transactions within 90 days to their financial institution for potential reimbursement. RBC also claimed it had no records of their daughter visiting the branch or any documentation of the issue in February 2023.

The Lynes assert they are still owed over $1,500.

“How can they be responsible for our money, allow this to happen, and then not make it right?” Jason asked.

Susan said she was informed verbally by an RBC branch manager that another RBC customer had mistakenly entered incorrect information while setting up pre-authorized payments with Telus. Telus confirmed to Consumer Matters that its initial investigation showed no record of the Lynes’ daughter being a customer.

Consumer Matters reached out to RBC for comment regarding the unauthorized withdrawals. RBC responded in part:

“…While we cannot comment further on this specific case due to client privacy, we have shared our findings with the client directly and explained the reasons for our decision, based on a thorough investigation. RBC follows Payments Canada’s pre-authorized debit rules, including those related to transaction disputes. We remind clients to regularly review their statements and report any irregularities immediately…”

Duff Conacher, co-founder of the non-profit Democracy Watch, commented that the system is generally designed to protect banks from accountability.

“Banks have set up electronic banking systems in their favor. If money is taken from your account due to a mistake, scam, or fraud, the banks are protected, and you lose your money,” Conacher said.

His advice to consumers is to file a complaint with the ombudsman. “If the bank isn’t refunding all of your money and it’s their fault for not protecting it, the ombuds can at least increase the level of embarrassment for the bank,” Conacher said. “I would also suggest going public and contacting the media.”

Susan and Jason Lyne are considering their next steps, which may include leaving RBC and transferring their funds elsewhere.

“For such a large and profitable organization, they could easily make this right,” Susan added.

RBC recently reported a third-quarter profit of $4.49 billion, up from $3.86 billion a year ago.