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FAQ about RBC’s Cost of Borrowing Correction
Below is a list of questions and responses to address concerns you may have about your impacted products.
About the Discrepancy
- RBC identified system issues with interest rounding to the decimal, leap year and day-count averaging conventions that impacted mortgage, auto finance and personal lending clients.
- This issue resulted in minor discrepancies between information disclosed in the agreement and the Cost of Borrowing (COB) disclosures or renewal documents and what clients were charged.
- The discrepancies resulted in clients being charged slightly more or less than the amount stated in their disclosures. Depending on the type of mortgage and payment frequency the client had, they may not have been impacted and were charged correctly.
Can such a discrepancy happen again?Can such a discrepancy happen again?
- RBC has corrected its systems to ensure this issue no longer impacts clients.
What is the Refund Process?
No, if clients were charged less, RBC will not seek reimbursement.
No, all existing RBC clients with impacted loan, mortgage or auto finance loan accounts will be contacted and refunded with no further action. If you are an existing RBC client and have a loan, mortgage or auto finance loan that was closed 7 or more years ago, information will be provided at a later date as to the steps you may take to claim a refund.
How do I know my refund amount is accurate? How do I know my refund amount is accurate?
RBC has carefully evaluated and recalculated to ensure that impacted client’s receive refunds including interest on the refund amount if applicable. Where information was unclear or unavailable RBC has calculated in the clients benefit.
Will the refund go directly into my RBC bank account?Will the refund go directly into my RBC bank account?
If you still have your lending product’s payment account open, then your refund will be directly deposited. For all other cases you will receive a letter with a cheque.
No, RBC will be refunding clients in phases and there may be a period of time between a refund for one product and another. This may span over a few months and into early 2024.
How will I be Communicated with?
This means that you are not one of the impacted clients for whom refunds are being calculated.
Yes, you will receive a communication for each impacted product you held during the relevant time period.
No, you will receive your communications advising if you were impacted and refunds over a span of a few months and into early 2024 as clients will be refunded in phases.