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Holds on transfers
July 31, 2023
10:46 pm
Norman1
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UkrainianDude said

At first there was no hold in my online banking account. So I went to the bank and ask if I can withdraw cash or money order (if charge is waved). And RBC decided to put money on hold. I complained to rbc hotline about this and manager personally called me on Friday (deposit was made on Monday and Tuesday), and told that the fund were cleared. Just my real life experience. If weren’t to withdraw the funds there was probably no hold.

That hold was not a regular hold on deposits.

A regular deposit hold is applied when the deposit is accepted. Not when an attempt is made to withdraw the funds from the deposit.

A regular deposit hold on a Canadian deposit item is four or five days starting with the business day after the day the deposit was accepted, according to the RBC Hold Policy Guide.

You had access to the funds from both deposits on Friday. That's only a hold for three days and two days, counting from the day after the deposits on Monday and Tuesday.

I suspect the holds applied were for the suspicious attempt to withdraw funds from the "Misc Payment" direct deposits by cash or money order. I think the RBC staff would not have been as suspicious had the attempt been to withdraw in cash direct deposits with the type "Payroll Deposit" or "Pension".

May 12, 2024
11:07 pm
Hmm
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I was told by Tangerine, Simplii, and RBC that once the funds are pushed or pulled, there is no way to reverse the transactions. I had situations with Tangerine specifically where I wanted to cancel the pull or push within minutes but I was told many times this isn't possible.

Additionally, I don't see in the legislation https://laws-lois.justice.gc.ca/eng/regulations/SOR-2012-24/page-1.html#h-785130 funds can be on hold for 9 days.

Even so, Manulife's policy (without exception) on new accounts more than $1500 is 10 business days. Seemingly in contradiction to their own terms and legislations. They add caveats in their agreement for which they can delay for any reason. Doing so, in my opinion doesn't make it legal.

In my case, they assume that I'm doing something illegal or it is a new account which allows them to bypass the legislation. Again, this timeline is not mentioned anywhere.

May 13, 2024
4:48 am
Alexandre
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Hmm said
I had situations with Tangerine specifically where I wanted to cancel the pull or push within minutes but I was told many times this isn't possible.

For Tangerine that has changed, I think not so long ago. Perhaps, to accommodate people who have second thoughts.

Just now, I initiated small transfer from Tangerine to my linked account of another FI. Transfer is shown in the list of Pending Transfers, with the date of tomorrow. In Pending Transfers, I was able to cancel that transfer.

That, of course, also means when someone initiates push, Tangerine will be holding their funds for one more day.

May 13, 2024
7:29 am
Norman1
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Hmm said
I was told by Tangerine, Simplii, and RBC that once the funds are pushed or pulled, there is no way to reverse the transactions. …

That's false. The resulting automated direct deposit or pre-authorized debit can certainly be disputed by holder of the targeted account and be reversed.

Payments Canada Rule H1 section 23 allows 90 calendar days after a pre-authorized debit is posted to dispute it. Financial institutions regularly allow around 30 days after the statement the pre-authorized debit appears on to dispute it.

Access to Funds Regulations SOR/2012-24 do not apply to automated funds transfers. One is not depositing anything with magnetic ink when one does a pull:

Application

2 Sections 3 [Maximum Cheque Hold Period] and 4 [Availability of First $100] apply only with respect to paper-based cheques or other instruments deposited in Canada that are encoded with magnetic ink to allow for character recognition, are not damaged or mutilated such that they are unreadable by cheque clearing systems, are drawn on an institution’s branch located in Canada and are issued in Canadian dollars.

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