Wednesday, August 25, 2010

Why I Don't Bank at CIBC

Every once in a while I have a disagreement with a financial institution.  I've learned to accept this as the reality of dealing with imperfect institutions.  Most bank employees try hard, and the issues can be complex.

However, for many years I have not banked at Canadian Imperial Bank of Commerce.

The reason began when my employer, the Province of British Columbia, issued B. C. Government bearer bonds to all employees many years ago as part of a contract settlement.  The bonds were for $100 each, redeemable on October 15 and April 15.  The redemption agent, printed on the bonds, was CIBC.

I bought a number of these bonds from co-workers for $98 with a $4 coupon; or $94 without the coupon.

On April 15 I took the bonds to the local CIBC.  They refused to redeem the bonds, telling me that they had arranged with the other banks that the bonds could be redeemed at any of them. I should go to my own bank, although the bonds stated that CIBC was the redemption agent.

I walked up the street to my bank, the Bank of British Columbia, only to be told that the mailbag had left for the day, and they wouldn't redeem the bonds.  The mailbag had gone at 1:30 pm; it was then 2:00 pm.

I returned to CIBC and told them what had happened.  They still refused to redeem the bonds.  They told me that they hadn't made any money on the bonds; and besides Premier Bill Bennett had "made" them issue the bonds.

"Made them?"  Bill Bennett had "made them" issue the bonds, and therefore they wouldn't redeem them?

I told them that they issued the bonds, because they were the "Principal Banker of the Province", and every night all of the government's receipts were deposited into their bank.

Still they refused.

I went home and wrote a letter to the CIBC head office.  A few days later I went downtown to their main branch and picked up a cheque.  But I still don't do business with them.  

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