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RBC Issues Refund To App. 23,000 Clients Who Prepaid Their Mortgage Between 1999-2004 |
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Written by Wire
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Tuesday, 24 January 2006 |
RBC Royal Bank announced today that it is providing refunds to approximately 23,000 residential mortgage customers who were assessed an incorrect mortgage prepayment charge. The mortgage prepayment charge applies when a customer breaks, converts or early renews their mortgage before maturity.
The refunds are for a portion of each client's prepayment charge and relate to mortgage prepayments made from 1999 to 2004. The total amount refunded will be approximately $7.2 million including interest, which has been accounted for in RBC's 2005 Financial Statements.
"We regret this situation and have been working diligently since it was discovered to fully identify all affected accounts," said Catherine Adams, head of RBC Home Equity Products. "We immediately conducted an in-depth review and our employees have also been correcting the situation on an individual basis. The review is now complete and refunds have been initiated for the remaining accounts affected."
The majority of mortgage holders will be automatically refunded by cheque. In some situations where clients no longer deal with RBC or where some prepayment information cannot be retrieved automatically, the bank will initiate a manual review upon request. Customers wanting more information on refunds can visit the bank's website at www.rbcroyalbank.com/prepayment or call their customer service line at 1 800 ROYAL 11. |
