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1. How did you discover that some clients were not receiving the discounts they were eligible for on their Safe Deposit Box rental fees?
We recently conducted a review of our Safe Deposit Box billing records which revealed that some clients were not receiving the discounts they were eligible for on the rental of these boxes. With several of our banking packages, clients receive a discount on their Safe Deposit Box of between $5 and $40 per year. Most discounts were correct. However, in some cases, clients did not receive the discounts they were eligible for through their banking package. In some other cases, clients were receiving a higher discount than they were eligible for, or they were receiving a discount when they were not eligible for one.
2. Why did this happen?
Discounts for Safe Deposit Box fees were applied manually and in the majority of cases the process had been especially complicated when there were multiple banking packages and boxes connected to multiple owners. Also, changes made by clients to their Safe Deposit Box or banking package were not automatically tracked to ensure all available discounts were used. For example, a client who had one or more Safe Deposit Boxes and selected a banking package at a later date may not have received the available discounts.
3. What is RBC doing to correct this situation?
In cases where we were able to identify the Safe Deposit Boxes that were eligible to receive a higher discount, we will be sending those clients a cheque for the difference plus taxes and interest beginning September 18, 2006. To ensure this does not happen again, we have simplified the administration of Safe Deposit Box discounts. Our systems will assign the appropriate discount once you select an eligible banking package and your choice has been recorded.
We have also reinforced our policies and procedures to ensure that you have the information you need to make informed choices about your banking needs.
4. How do I know if I should make a claim?
If you have not received a payment adjustment from RBC, or if you did but believe you may be eligible for a different amount, you may qualify for an adjustment.
This claims process is primarily designed to reach individuals who closed their box or changed/closed their banking package prior to 2002 when details were not in electronic format and readily accessible, or where current contact information is not on file.
If you meet the above criteria, please complete a Discount Adjustment Claims form and mail it to us at the address provided. We will investigate whether an adjustment applies.
5. What happens once I submit my claim?
We will investigate whether you qualify for a payment adjustment or additional amount and will respond to your request within four to six weeks.
6. I may have received a higher discount on my Safe Deposit Box rental fee than what was available for my banking package, or I may have received a discount when I was not eligible for one. Will I be asked to pay retroactive fees?
No, you will not be asked to repay these amounts. However, you will receive a letter in the coming weeks informing you of the rental fees and discounts if available for your Safe Deposit Box effective January 2007.
7. Where can I find out the annual Safe Deposit Box discount for the banking package I have chosen?
Please refer to our Safe Deposit Box - Rental fee discount brochure.
For more information about the banking package you have selected, including any Safe Deposit Box rental discounts, and how that discount may be applied in your specific situation, please call us at 1 800 769-2511 or visit your local branch.
8. I share the rental of my Safe Deposit Box with another family member. Who receives the payment adjustment cheque?
A Safe Deposit Box discount is a benefit associated with a banking package. Generally, the letter will be sent to the primary owner of the banking package associated with the affected Safe Deposit Box. A cheque will be enclosed with the letter and it will be payable to a maximum of 5 owners associated with the banking package and the box (i.e., the "common owners").
9. I claim my Safe Deposit Box fees as a tax deduction. What are the tax implications?
We suggest speaking with your tax advisor who can assess your personal tax situation.
10. What interest rate did you apply to the interest portion of my adjustment?
Please refer to the Annual Weighted RBC Prime Interest Rate chart.
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