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RBC freezes client’s bank account by mistake – and keeps it frozen without explanation

By BERNIE BELLAN (June 14, 2024) What would you do if, one day, you tried to use your debit card to pay for something or to take a cash withdrawal – and the card didn’t work? But then, after contacting your bank to try and find out why that’s happening, you’re simply told your account is frozen – without any further explanation? And, only after deducing that the bank froze the account of the wrong individual, does the bank finally admit its error.
Such was the case recently with an RBC client who happened to be a relative of mine and who enlisted my help in trying to figure out why their account had been frozen by RBC.

On May 1 I was contacted by my relative asking for my help. They couldn’t understand why their debit card wasn’t working. They told me that their card had stopped working five days prior. (It should be explained this individual does not have sophisticated knowledge how to deal with a problem of this sort and they simply thought there was a glitch in using their card that would be corrected in short order by the bank.)

After several days of not being able to use their card, my relative explained, they had phoned RBC on April 30, but were not offered any explanation as to why their account had been frozen. They were told, however, that the matter was in the hands of a Vancouver branch of RBC. My relative was even further puzzled. They lived in Winnipeg and had never even been to Vancouver. What did their account being frozen have to do with a Vancouver branch of RBC, they wondered?

The day my relative contacted me, I told them to come over to my house and that I would try and get an RBC customer service representative on the phone to obtain some sort of explanation as to why their account had been frozen. After getting an RBC customer service representative on the phone and explaining who I was, I asked permission to listen in on the conversation between my relative and the RBC customer service representative. The customer service representative agreed to allow that, but during the course of the conversation they said they were not able to offer any information as to why the RBC client’s card had been frozen.
Both my relative and I were totally puzzled. RBC had frozen their account but would offer no explanation for why that had happened.

Later that day, however, my relative contacted me again to say that they wondered whether it was possible their account had been frozen by mistake because they had the same name as another relative? That other individual does live in Vancouver, so it began to make sense to me. I don’t know that individual well, but was able to contact them after getting their phone number from someone who knew them.
I phoned that person but just got their voice messaging, so I left a message asking them to call me. In a few minutes that individual did call me back and did say, not only that they had an RBC account, but that they had some legal issues related to debts (without going into specifics).

Immediately it occurred to me that my Winnipeg relative’s account had been frozen by mistake and that it was this Vancouver relative whose account was the one RBC had intended to freeze.

I phoned RBC back again and said that it was apparent RBC had frozen the account of the wrong individual. When I gave a detailed explanation of what evidently had happened, this time the RBC customer service representative told us to go down to the branch where my relative does their banking, where we would be met by a banking representative.

At the branch we met with a very nice RBC representative who said they had been brought up to speed as to what had happened. The bank representative explained that my relative’s account had been frozen as the result of a court order that had been issued in Vancouver to freeze the account of someone with the same name. The representative said that my relative could still not use their debit card to access cash, but the representative would be able to give them cash that they could use until their account was unfrozen.

At that time I suggested that what RBC had done was an outrageous mistake and that RBC ought to offer compensation to my relative. The branch representative said RBC was willing to waive bank fees for my relative for six months – apparently worth something in the order of $80 altogether.
The representative also gave me the name of the law firm that had applied for the court order that had led to the wrong account being frozen.

I contacted that law firm the same day and explained what had happened to a lawyer from the firm. The lawyer told me that the court order that had been applied for and had been issued by a court specifically gave the number of the bank account that was to be frozen. The lawyer sent me a copy of the bank order.

It was apparent that someone at RBC had made a huge mistake. They had ignored the order to freeze a specific account belonging to a specific RBC client and instead had frozen the account of a totally different RBC client who happened to have the same name!
When I discovered how egregious a mistake RBC had made – after reading the court order, I contacted the same RBC branch representative who had offered to freeze the fees on my relative’s account and said that my relative expected a lot more in compensation for such an outrageous mistake than simply having bank fees waived for six months.

On May 22, the RBC branch representative wrote in an email to me:
“Your request for compensation has also been escalated to our RBC client care department. They will reach out directly.”

On June 11 we contacted the branch representative to say that my relative had not heard anything from the client care department. On June 12 the branch rep wrote to me to say that an RBC client care representative had indeed attempted to contact my relative – both via phone and email. The phone number that was given in the email though was no longer in service and when we checked with our relative they said they hadn’t received an email.

On June 12 we emailed the RBC client care representative to ask them to attempt to contact our relative again. We did not hear back from that representative. To date our relative says they have not heard anything from the client care representative.

The upshot is RBC made a huge mistake and froze an account of the wrong individual – causing them distress and frustration, and only after we were able to figure out what had led to the wrong account being frozen, did RBC unfreeze the account. And, even though we asked for compensation over a month ago, no response has been received from RBC.

Update June 25: In a letter dated June 18, 2024 RBC client care representative Michelle Smith finally responded to the RBC client. In her letter, Ms. Smith wrote that the client “accepted the Branches (sic.) offer to waive the monthly fee on” her “RBC Advantage Banking Account for 6 months…for a total amount of $47.70…No further compensation will be provided.”

What Ms. Smith does not address in her letter, however, is the fact that when the RBC client attended her local branch to find out why her account had been frozen, she was told it was a result of an order by a BC court to freeze an account belonging to a client with the same name.

As noted in the story though, it was only after receiving a copy of the court order that had led to the freezing of the bank account from the lawyer who had applied for the court order did it become apparent that it wasn’t simply a mistake of freezing an account for the wrong person, it was also a mistake of ignoring the specific instruction on the court order to freeze an account with a specific number attached to it. It wasn’t just a mistake – it was gross incompetence on the part of an RBC employee. Yet Ms. Smith conveniently chooses to ignore that in her letter rejecting any further compensation to the client.

In her letter, Ms. Smith does invite the client to take the matter up with the RBC Client Complaints Appeal Office. If anything ensues from that we will update this post.

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1 Comment

1 Comment

  1. Libby

    June 20, 2024 at 7:43 pm

    Not surprising Financial Institutions have become incompetent at all levels from tellers to managers.
    When AI takes over jobs will be gone and CEO and VPs will be compensated

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Temporary Federal Government visa program paves way for Israelis looking to Canada for reprieve from war

By MYRON LOVE Shortly after the Oct. 7th Hamas attack, Immigration, Refugees, and Citizenship Canada (IRCC) instituted a temporary immigration measure for Israelis (as well as Palestinians from Gaza and the West Bank) to apply for a temporary reprieve in Canada through applications for work permits. According to Iael Besendorf, Jewish Child and Family Service’s Settlement Services Team Lead, since last October, 70 families have arrived from Israel, comprising 191 individuals. 
“While some of these families were already in the process of applying to move to Winnipeg, the conflict in Israel hastened them to leave sooner,” she reports. 
She adds that approximately 50 of the families – comprising over 150 adults and children – have come through under the aegis of the temporary work visa program.
Besendorf points out many of the individuals, couples, and families arrived in Winnipeg in great distress, only taking the few belongings they needed to settle here.
“Most left behind family, friends, and jobs in a sudden state of emergency,” she notes.
”During the first few weeks following their arrival, JCFS was there to hear and acknowledge their immediate trauma.  We at JCFS continue to provide individual counselling and group supports as needed.”
She further adds that JCFS created – with the financial support of the Jewish Federation of Winnipeg –  a special War Response Team to assess and respond to the needs of local community members and new arrivals.
“Mental health and counselling professionals on our team are available to meet with anyone needing services,” she says. 
“As an adjunct of this, we at the JCFS Settlement Team are the first to interface with newcomers to our community and are also available to help triage and refer clients in need.  These new arrivals receive our typical settlement supports such as: information and orientation about their first steps in Canada, which includes help with practical needs such as housing, daycare, schools for their children, employment resources, and an orientation to all the various Jewish organizations.” 
The newly arrived Israelis have also been showing up at our community’s summer camps and Gray Academy of Jewish Education. 
“After October 7, we welcomed 17 temporary students who came from Israel to be with friends or family in Winnipeg,” reports Lori Binder, Gray Academy’s Head of School and CEO of the Winnipeg Board of Jewish Education.
“Eight of those students remained at Gray Academy, and 12 more Israeli students have joined us for the 2024-2025 school year.”
 
She adds that enrolment at the school is over 500 (as compared to 472 last year) – with almost 100 of them brand new to the school.  Quite a number of the new students, she points out, are from local families who see the value in a Jewish education.
Ian Baruch, Camp Massad’s Planning and Engagement Director, reports the camp at Sandy Hook welcomed “quite a few” IsraeIi kids this past summer among the 136 campers who were registered.
“About a quarter of our campers and half our staff are Israeli or from families from Russia who came here by way of Israel,” he notes.
 
The BB Camp office was closed through the first half of September so no comment was available as to the number of Israeli children at the Lake of the Woods camp.
 
Iael Besendorf further observes that among the challenges the Israeli newcomers are facing here is the length of time that it is taking the Federal Government to issue work permits. 
“As a result,” she says, “the adults are unable to work, and many families are feeling this financial pressure.” 
She adds that “as the situation in Israel appears to be far from over, we expect more people will seek reprieve outside of Israel. The Federal Government just announced an extension of one more year, to March, 2025, for this temporary visa program.  As such, JCFS expects that more will arrive and that we will are likely to see a steady stream of more people over that time.” 

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Argentinian-born architect Juan Sternberg shares his success story in Winnipeg

By MYRON LOVE Upon his arrival in Winnipeg from Argentina in 2004, architect Juan Sternberg metaphorically unlocked a door to a world of endless possibilities. Sternberg told the story how he arrived in Winnipeg and how his career as an architect has flourished here at a joint Jewish Business Network/GrowWinnipeg/Rady JCC program on Thursday, September 19.
As has also been the case with most other Argentinian Jewish newcomers to Canada over the past 25 years, Juan hails from Buenos Aires, which is where he graduated from architecture – at the University of Buenos Aires, in 1986. His passion for innovation led him to pursue post-graduate studies in CAD/CAM design and a teaching position in the university’s Faculty of Architecture for more than 5 years. He then worked for more than 20 years for a major construction company in Argentina’s capital city as an architect and project manager. The company’s projects include the stunning MALBA (Latin-American Art Museum of Buenos Aires), the Galicia Bank Tower, and the impressive Metrogas Argentina.
 “It was in 2001 that my wife and I decided to move our family – including our 12-year-old son and 9-year-old daughter to Canada,” Sternberg says.  “I had a friend whose brother lived in Canada. Through our research, we became aware of the Jewish Federation of Winnipeg’s Outreach program.”
 In 2004, Sternberg and his family arrived in Canada. Soon after, he obtained status as a LEED AP (Leadership in Energy and Environmental Design Accredited Professional) with the Canada Green Building Council. Sternberg also became certified with the Canadian Architectural Certification Board, the Royal Architectural Institute of Canada, and the Manitoba Association of Architects to practice architecture in Canada. He practiced at a local architecture firm in Winnipeg for ten years.
 In 2016, it was time for Sternberg to open his own office – SA Sternberg Architecture – at 611 Corydon Avenue. Sternberg and his staff focus on institutional, commercial, and government projects country-wide.  “Regardless of the project size, at Sternberg Architecture the job must be done right. We started with small projects,” Juan notes, “which led to larger, more interesting assignments.” SA Sternberg Architecture believes that client collaboration is the key to success. The firm’s steady growth over the years is due to client satisfaction and word of mouth.
Sternberg believes that,  from concept to completion, each project and each client requires a unique solution, where quality and design are paramount.  “By understanding the needs of our clients we can create beautifully designed functional buildings while keeping the projects economically feasible – and our clients appreciate that,” he says.
Current projects that SA Sternberg Architecture is working on include school renovations and a childcare centre in Dauphin that will be able to accommodate up to 120 children. Sternberg has also done residential work, projects for Manitoba Housing, First Nations, and renovations for higher education facilities. His practice embodies the spirit of architectural excellence and entrepreneurial drive.

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‘STAND-UP NATION” – New book highlights Israel’s many contributions to world through international development

cover of 'STAND-UP NATION"/author Aviva Klompas

Review by BERNIE BELLAN Elsewhere on this website we have a story about an event that was sponsored by JNF Canada at Camp Massad on Sunday, September 1, during which the guest speaker was someone by the name of Aviva Klompas.
As we noted in that story, Klompas is the author of a recently published book whose title, “STAND-UP NATION” is an unabashed emulation of the wildly successful ‘”START-UP NATION,” which was published in 2009.
As I noted in my review of ‘START-UP NATION” in the December 16, 2009 issue of The Jewish Post & News, “This book, simply put, is one of the most uplifting pieces of writing about Israel that has come out in a very long time. For anyone who is a strong supporter of Israel, the stories that (Dan) Senor and (Saul) Singer relate about Israel’s emergence as a high-tech superpower will be reminiscent of past stories about Israel’s military brilliance.”
Fifteen years later, Klompas adopts a very similar style that Senor and Singer employed in their book, which was to provide a series of case studies that illustrated how Israeli creativity and entrepreneurship combined to turn Israel into an economic success story.
While “START-UP NATION” suggested that Israel’s brilliance in the economic sphere was something that had only been a relatively recent development – beginning in the 1990s and fuelled largely by the influx of massive numbers of Russian immigrants, Aviva Klompas’s thesis is that Israel has had a tradition of international development and aid from the very beginning of the foundation of the state.

Her book was 10 years in the making, she explained in an interviews she gave at a recently held event near Boston. It first took root when she was Israel’s sole speech writer at the United Nations (from 2013-15), she said. In that capacity, Klompas noted, she had to immerse herself in a whole range of subjects – including international aid and development – about which, she admitted, she knew very little prior to her period of service at the UN.
But, as she learned more about how much international aid development had been a part of the very fabric of Israel’s founding ethos – especially as it was promoted by Israel’s first prime minister, David Ben Gurion, Klompas began to develop an especially keen interest in finding out as much as she could about how Israel came to be one of the very first nations that advanced the notion of international development in third world countries.
As Klompas explains in the book, the tremendous challenges that the newborn State of Israel faced in the first two years of its existence – when it absorbed over 800,000 new immigrants comprised of Holocaust survivors and refugees from Arab countries – leading to a doubling of Israel’s population almost overnight, “Despite the small population and lack of natural resources, the country’s leaders had big ambitions. Ingenuity and entrepreneurship were celebrated. Chutzpah took root as a national ethos. As time passed, the country’s confidence grew, and its citizens turned outward. They shared their success with other countries confronting similar challenges. With each passing decade, as Israel grew more secure and prosperous, it became a model and inspiration to developing countries that sought to achieve the same transformation.”

How Klompas came to write this particular book is an interesting story in itself. She said, during the interview that, after she left the UN, she began something called “Project Inspire,” in which she took young people on study tours to third world countries such as Kenya, Uganda, Nepal, Guatemala, and India.”
During those tours she encountered project after project that had been started by Israelis who had been inspired by a combination of idealism and experience. Of course, she uses the phrase “tikkun olam” quite often in her book, but that particular phrase is trotted out so often by Jewish organizations and is so general in its meaning that it loses its impact.
Instead, what Klompas does is tell a series of 20 different stories in which Israelis – often Americans who emigrated to Israel by the way, turn to using education and skills that they acquired in Israel into very imaginative projects in countries all around the world.
It was during the Covid epidemic that Klompas first thought of writing a book filled with stories of Israelis who had travelled to distant lands to initiate a variety of aid projects – often without any assistance at first, but then through a combination of fund raising and appealing to the governments of countries to which they had travelled, had achieved remarkable success almost always through their own ingenuity and resourcefulness,
What is so remarkable about many of these individuals is that their stories begin with travelling to a particular country, often backpacking – usually seeking adventure, and during the course of their experiences in those countries, they come to realize that they are well suited to providing exactly the sort of expertise that is so sorely needed in those countries.

Whether it’s in the areas of agriculture – which is a very common theme in the book, or often health care, Israelis time and time again have gone into some of the poorest parts of the world to offer assistance. And, in contrast to many other individuals from other countries that have also become involved in development projects, many of the Israelis profiled in “STAND-UP NATION” have stayed for years, rather than mere months. Often they’ve learned native languages – and customs, and rather than attempting to inject foreign concepts into the lives of the people with which they’re living, they adapt those concepts to native traditions.
Even after they’ve returned to Israel a great many of the individuals Klompas describes in the book have kept going back to the countries where they helped to initiate projects – often to check up on those projects or to begin new ones.
At the beginning of the book, Klompas describes Israel’s very first international development agency, known as MASHAV, and how it actually preceded international development agencies from countries such as the US, Canada, and Britain, as well as the UN’s own international aid agencies.
While Klompas does concede that, to a certain extent, MASHAV was intended to improve Israel’s image within third world countries, she notes that even to this day, MASHAV has training programs for thousands of individuals coming from countries that have been highly critical of Israeli policies – especially since Israel’s incursion into Gaza.

Given that the book was released only recently, Klompas often refers to how much Israel’s image in the world has changed for the worse since October 7. Yet, in a series of often poignant post scripts that she includes at the end of many of her chapters, Klompas quotes from many individuals who have either been working closely with Israelis in their respective countries or who have benefited from receiving training and education in Israel itself. In many of those excerpts from emails sent by various individuals, they remark upon how much anguish they feel for Israelis – also for Palestinians.
One question that did occur to me as I read this very well written book (and Klompas’s years of experience as a speechwriter shine through as she manages to imbue each story she tells with a freshness that keeps the book from bogging down into repetitiousness) is: How many of the many aid projects that had been undertaken by Israeli-based organizations have been severely affected by how badly Israel’s image has suffered in the past year? In many of the cases Klompas cites – and these were situations in which Israelis had gone to countries that either had no relations with Israel at all or had very poor relations with Israel, the Israelis going into those countries hid their identities as much as they possibly could.
Klompas also describes how Israeli disaster relief teams have gone into countries – such as Turkey and even Syria, to provide relief, often at great danger to the members of those teams.

One final note: Considering that Aviva Klompas was the special guest speaker at an event sponsored by JNF Canada Manitoba-Saskatchewan Region, and JNF Canada is now in the midst of a terrible situation in which its charitable license has been revoked by the CRA, I thought it appropriate to refer to a section of “STAND-UP NATION” in which Klompas writes about the many projects in which the JNF has been involved that have directly led to enormous benefits, not only for people in many third-world countries but, at least prior to October 7 – Palestinians from the West Bank and Gaza as well. (Again, I would have liked to know to what extent projects involving students from the West Bank and Gaza have now had to cut ties with students from those areas since October 7. What a tragedy.)
Klompas writes about the Central Arava Research and Development Centre, “which is developing new crops and improving existing techniques so farmers in the Arava Valley can compete in the global produce market;” about the Kasser Joint Institute for Food, Water, and Energy Security, “which develops techniques and technologies to aid communities in arid and hyper-arid low income countries in addressing their food, water, and energy insecurities cost effectively and sustainably;” about the Arava Institute for Environmental Studies, which brings together “students from Israel and Jordan, along with Palestinians from the West Bank and the Gaza Strip…who train together in the fields of sustainability and the environment;” and the Arava Institute for International Training, which is “attracting young men and women from developing countries all over the world.”
While Klompas doesn’t specify exactly how much the JNF has been involved in each of those projects, the point is that the JNF’s contributions to research in the areas of crop development in even the harshest, most arid conditions, have been of benefit not only to Israel, but to countries all over the world – also to Palestinians in the West Bank and Gaza. And to think: the CRA has questioned JNF Canada’s “charitable object.”

Just as Israeli international aid organizations have been motivated by a combination of a desire to do good – as in the concept of “tikkun olam,” also to a certain extent, Israel’s desire to improve Israel’s image in the third world, what difference does it make so long as all those individuals working in third world countries are contributing so mightily to the well being of the people with whom they are working?
The same can be said of JNF Canada. While the CRA may be nit picking individual projects in which JNF Canada has been involved, saying the paperwork trail is deficient, how can one question the incredible humanitarian contribution that the JNF has been making for years – in ways Klompas cites?
Perhaps at some point we’ll be able to find out from Klompas how each of the 20 projects she profiles in this very important book have been affected by what’s been going on in Gaza the past 11 months. But, if anyone needs to get a better idea how enormous an impact Israel has had in the area of international development – on a scale the country has had in the area of entrepreneurship – as described in ‘START-UP NATION,” read “STAND-UP NATION.”

“STAND-UP NATION…Israeli Resilience in the Wake of Disaster”
By Aviva Klompas
213 pages
Published by Wicked Son, 2024
Available at the JNF office in Winnipeg (phone 204-947-0207) or an Amazon.ca

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