07/09/2003 - Royal Bank pays back millions
Reported in a Canadian newspaper today (July 9th 2003) the
largest Bank in Canada, ROYAL BANK has quietly been mailing
out rebate cheques, because of calculation errors to 200,000
mortgage clients for a total of $13 million dollars. The errors
go back as far as 1992 and are because of interest calculation
errors due to the Royal Banks variable rate mortgages.
Michael Janigan, executive director of the Public Interest
Advocacy Group in Ottawa said the Royal Bank case “raises
the issue that you cannot rely absolutely upon calculations
done by your Bank at all times”.
This problem could have possibly been avoided if lenders were
legislated to provide up to date amortization schedules at
the end of each year. People make mistakes and so do computers
because people program computers. An amortization schedule
is a double check on the lenders.