July 2, 2015
My husband and I have been using ING/Tangerine products for the past 12+ years; mortgage, line of credit etc.and in the past year we have been taking advantage of the joint chequing/ savings accounts. Yesterday we were unable to access his pay cheque which had been deposited the night before. From the beginning we have both had access to $2000.00 immediately with the remaining balance of the deposit being available in five business days. An inconvenience from the onset as our previous bank gave us access to the entire amount immediately, but we were willing to concede this point to take advantage of the no fee banking being offered at Tangerine. Yesterday we contacted tangerine to find out why a hold had been put on our account. After 1+ hours of sitting on the phone and re-explaining that my husband had access to 2000.00 immediately and asking for answers the operator and his manager finally came to the conclusion that every 90 days a credit check is done and accounts are adjusted accordingly to those results, and that in the future my husband's funds would be held for five days. Where in the policy and papers that we signed when we opened accounts is it stated that they will treat long time clients who have never defaulted on a mortgage payment or line of credit and have always maintained good standing in all of their accounts will have the screws put to them because of a credit rating that might have dropped one point on the credit scale? If we had not of noticed the hold immediately all of our payments would have gone into default including our mortgage , further marking the credit scores.The operator informed us that the best way to work around this policy would be for me to deposit my husbands cheque from my card/phone app into the joint account. Really??? We are not a family that has thousands of dollars just sitting in an account, we need our funds available to live, we have pre-authorized payments coming out, we work three cities from each other and we are under the time restraint of the 6:00 deadline to have the cheque deposited to be counted in that days transactions. So our conclusion to this dilemma would be to add my client card to his phone app giving him access to my client card information so that he can deposit his cheque on time, a suggestion I might add that is in direct violation of tangerines own policy. Absolutely ridiculous. There is no way that we can stay with a banking institution that chooses to treat its clients this way, up until this point we have raved about the company's ease of access etc .But a practice of randomly holding a consistently deposited pay cheque is unacceptable, further more the unpredictability of this practice without any type of notification is poor business practice. Our emails are on file we receive notifications all the time about our accounts yet the company sees no need to notify its clients about impending changes to their fund access. Their operator stated there is definitely an "inconvenience to this situation". My husband and I agree and will be moving all of our accounts to a bank that offers the exact services promised but with a stability and predictability in accessing our hard earned income.Furthermore we will be discouraging friends and family from using their products as well. Unfortunately they have not only lost two clients but all future business from numerous people in our circle over this disreputable practice that is applied to low risk clientele. The real sticking point for us is that we spent a lot of hours on the phone with them working out the details of a plan that would work for us. At no time was this random demotion ever mentioned.
October 21, 2013
Clients should absolutely be given advance notice of a change in policy that could have such serious consequences. I hope they will fix that.
On the other hand, three things:
I think we may see more tightening in this regard. Banks are a lot more wary than they used to be.
I hope there is some way you can restructure your budget so that you aren't running so close to the wire all the time. Sh*t happens.
It might be a good idea to check your credi rating. It's not all that unusual for them to have incorrect info on file. What changed?
July 10, 2011
Typically pay cheques arent held.. I've had deposits done manually that were however.. Maybe an error at payroll?
Banks will often reassess your rating to determine pre-release its not that uncommon I don't think.. Sucks that it was a tough week..
Would definitely check report to make sure nothing has changed
April 6, 2013
It sounds like the husband is depositing a paper payroll cheque and not receiving a direct payroll deposit.
There's nothing special about a payroll cheque. It is not a certified cheque or a bank draft. A payroll cheque can bounce.
I think it is reasonable for the financial institution accepting it for deposit to put a hold on a payroll cheque deposit unless it is confident that the account holder is good for the full amount of the cheque should it bounce.
Before, Tangerine would allow immediate access to $2,000 of the payroll cheque. Now, no immediate access. If it was a credit score change, I doubt that it was a just a one point drop.
It would be a good idea for the husband to check his credit record. It looks like Tangerine saw something and no longer thinks he is good for $2,000 of credit.
If it's not the husband, then it may be the employer! Perhaps, Tangerine had a few customers who deposited cheques from the same employer recently and the cheques came back NSF.