Big bank sees error in its ways

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Scotiabank offered its apologies and waived the $7,000 in fees that it applied to an injured soldier who broke his mortgage contract to move back to his home in New Brunswick.

Master Cpl. Martin Pitre, who served and was injured in Afghanistan, planned to move from his Ontario home near CFB Petawawa where he was stationed following his medical discharge from the Canadian Armed Forces. However, the bank didn’t offer Pitre the option to transfer his mortgage to his new home on the east coast, the mortgage for which is also through Scotiabank.

“After looking into this situation, we believe we erred in not offering Mr. Pitre the option to port his mortgage. We understand this has caused frustration and we have worked with Mr. Pitre and found a solution, which does not include a mortgage prepayment charge,” said Scotiabank.

“We are a proud supporter of our Canadian Armed Forces and we have the utmost respect for veterans and their families.”

The error stems from cuts to government funding that previously covered relocation expenses for military personnel. The military still covers the cost of a final move for its members, but in 2012 the government quietly cut funding that covered any fees or penalties that military members may incur as a result. That change could affect some 14,500 members who relocate each year.

“The provision of comprehensive and fair compensation to our [Canadian Armed Forces] members and their families must be balanced with the requirement for responsible management of public money,” the Department of National Defence said in a statement to CBC News.
 
  • A Broker on 2014-06-24 11:32:34 AM

    Unbelievable that the bank would not actually just port the mortgage even though it ended up with the east coast mortgage because it knew it could get another $7,000 from the government, or so it used to be able to. Good for the unscrupulous branch manager. One lender no broker should ever use.

  • NMH on 2014-06-24 11:42:45 AM

    Oh BNS is waiving fees for an injured soldier, I applaud them for that but the banks have been gouging Canadians of all stripes old , young in firmed and all others in between since 2008 and neither consumer protection agencies the dept of Finance /OSFI or the media for that matter have taken the banks to task over the way they calculate prepayment penalties/IRD from a posted rate. The practice is fundamentally unfair ro consumers and that is why monoline lenders are far more consumer friendly in their penalty calculations , they are at least fair. The banks practices and the fact that regulators etc have allowed it to continue has been egregious.

  • Kim Mortgage Broker on 2014-06-24 11:59:11 AM

    Well said A Broker!

  • Daniel McKay on 2014-06-24 2:11:20 PM

    The Government/Department of Finance needs to amend the Mortgage act to make it illegal to use any other rate than the contract rate in IRD penalty calculations. Canadian mortgagors and the government themselves when they covered those penalties have been unfairly bilked by the banks for far too long. If CAAMP was not useless and controlled by the banks, this would be an issue they would lobby for this.

  • Daniel McKay on 2014-06-24 2:13:09 PM

    *lobby for (remove "this"). So hard to edit your posts writing in these tiny windows, wish this site would fix that.

  • Russ Cameron on 2014-06-24 5:59:55 PM

    Come on ..the bank reversed it..it was an officer error..us brokers deal with banks all the time every human makes mistakes its just some don't correct them..its called service weather your injured or not
    thanks Russ

  • Nelson Da Silva on 2014-06-25 8:30:46 AM

    Never trust banks. I'm pretty sure that since they revoked the $7K they will make that back from others paying fees. When do you know of a bank losing money? Never, they lose on what they expect to make during next year. I even hate keeping my money in saving accounts in big banks. And what makes they even more sad is that most of those tellers and management are consumers just like us, but they pretend to be different and help the big banks scam us customers with dam fees high fees. For the little work they do. If I could keep my money elsewhere besides banks that are safe I would most likely change from these moronic big banks.

  • Ron Price - DLC on 2014-06-25 9:39:26 AM

    Nelson we bank w credit unions, forget the big banks

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