Personal Finance

Locked out of bank account

  • Last Updated:
  • Mar 20th, 2020 5:46 am
[OP]
Member
Aug 3, 2015
366 posts
260 upvotes
Toronto

Locked out of bank account

Hi everyone. I was selling something cheap on Kijiji and accepted an etransfer. I was about to send the item but buyer wanted a refund and called his bank and claimed that he didn’t make the payment and now my credit union has locked my account with all my funds in it. I can’t log in or anything. They also asked me how I knew this person. Anything have experience with this? I thought etransfers could not be reversed?

How is it safe to use etransfer if the sender can just report it and lock your accounts?
18 replies
Sr. Member
User avatar
Jan 15, 2017
806 posts
418 upvotes
They can't be reversed. That's not what happened. Just show your bank the message chain and ask them to remove the freeze.
Deal Guru
User avatar
Mar 23, 2008
11170 posts
7445 upvotes
Edmonton
in4red wrote: Hi everyone. I was selling something cheap on Kijiji and accepted an etransfer. I was about to send the item but buyer wanted a refund and called his bank and claimed that he didn’t make the payment and now my credit union has locked my account with all my funds in it. I can’t log in or anything. They also asked me how I knew this person. Anything have experience with this? I thought etransfers could not be reversed?

How is it safe to use etransfer if the sender can just report it and lock your accounts?
The buyer probably reported it as a "fraudulent transaction", which means that your account (as the benefactor of the transaction) got locked. Wouldn't be surprised if theirs was as well, but since I've never done that, I don't know for sure.

Basically, the safe thing is to never do these types of transactions with someone you don't know. And if you do, make sure it's fully documented outside of the sales tool, in case your Kijiji/FB Marketplace account gets locked too. But cash is still best.

C
Deal Guru
User avatar
Mar 9, 2007
13253 posts
8207 upvotes
Think of the Childre…
most importantly, what did you sell that was cheap??

WOULD SOMEBODY THINK OF THE CHILDREN!!!
[OP]
Member
Aug 3, 2015
366 posts
260 upvotes
Toronto
CNeufeld wrote: The buyer probably reported it as a "fraudulent transaction", which means that your account (as the benefactor of the transaction) got locked. Wouldn't be surprised if theirs was as well, but since I've never done that, I don't know for sure.

Basically, the safe thing is to never do these types of transactions with someone you don't know. And if you do, make sure it's fully documented outside of the sales tool, in case your Kijiji/FB Marketplace account gets locked too. But cash is still best.

C
Yes that’s really strange. Etransfers should be done only if you know the person. My account is locked and i have no access other than my credit cards.
Deal Fanatic
Dec 5, 2006
8071 posts
3565 upvotes
Markham
CNeufeld wrote: The buyer probably reported it as a "fraudulent transaction", which means that your account (as the benefactor of the transaction) got locked. Wouldn't be surprised if theirs was as well, but since I've never done that, I don't know for sure.

Basically, the safe thing is to never do these types of transactions with someone you don't know. And if you do, make sure it's fully documented outside of the sales tool, in case your Kijiji/FB Marketplace account gets locked too. But cash is still best.

C
You are probably right

But it shouldn't work the way if i call my bank and report it whatever, then your account is locked

It's only one side of story and make people suffer. And OP shouldn't be the one to prove he is innocent
Deal Fanatic
User avatar
Dec 28, 2007
7798 posts
4133 upvotes
Alberta
in4red wrote: Yes that’s really strange. Etransfers should be done only if you know the person. My account is locked and i have no access other than my credit cards.
Not true. I've done nearly 200 eTransfers with total strangers on the CGN website and never had a single issue. You were probably dealing with scammer on kijiji.
Deal Addict
Feb 4, 2010
3515 posts
2324 upvotes
Perhaps he was counting on the fact that you had already shipped out the item and then he reported it - his way of getting the item for free.

I personally will only do in person cash transaction for Kijiji buy/sell to avoid issues like this. Let us know what ends up happening.
[OP]
Member
Aug 3, 2015
366 posts
260 upvotes
Toronto
hierophant wrote: Perhaps he was counting on the fact that you had already shipped out the item and then he reported it - his way of getting the item for free.

I personally will only do in person cash transaction for Kijiji buy/sell to avoid issues like this. Let us know what ends up happening.
My accounts got unfrozen finally.
I was selling a digital item. I finished work late so he thought I was scamming him or ignoring him so he called his bank to file a report. They said the etransfer was reported as a “scam” and they locked my account for my protection, meanwhile I had to go a day without access to any of my funds.

But I got a call and they told me one more report and they’d revoke my etransfer privilege.

I also asked him what protections seller has if buyers can just claim scam and file a report. This isn’t Paypal, everywhere they throw the assumption that etransfers are cash equivalents which is absolute BS if they lock your funds and investigate the transaction and revert your privileges after 2 complaints.

He also said that there is essentially no buyer protection offerer, yet buyers can still report transactions as a scam in terms of materiality of the item you are selling, not solely because of unauthorized use.

Then he said that etransfers are risky because buyer can lie and claim fraud and there isn’t anything you can do. So someone can send you money for something, claim the item isn’t what it is, and get their money back.

I believe there is an internal dispute process with the banks acting as arbitrators, but they dont tell you since they want you to believe etransfers are like cash and cant be reversed.

Think twice before using etransfers.
Deal Fanatic
Dec 5, 2006
8071 posts
3565 upvotes
Markham
in4red wrote: My accounts got unfrozen finally.
I was selling a digital item. I finished work late so he thought I was scamming him or ignoring him so he called his bank to file a report. They said the etransfer was reported as a “scam” and they locked my account for my protection, meanwhile I had to go a day without access to any of my funds.

But I got a call and they told me one more report and they’d revoke my etransfer privilege.

I also asked him what protections seller has if buyers can just claim scam and file a report. This isn’t Paypal, everywhere they throw the assumption that etransfers are cash equivalents which is absolute BS if they lock your funds and investigate the transaction and revert your privileges after 2 complaints.

He also said that there is essentially no buyer protection offerer, yet buyers can still report transactions as a scam in terms of materiality of the item you are selling, not solely because of unauthorized use.

Then he said that etransfers are risky because buyer can lie and claim fraud and there isn’t anything you can do. So someone can send you money for something, claim the item isn’t what it is, and get their money back.

I believe there is an internal dispute process with the banks acting as arbitrators, but they dont tell you since they want you to believe etransfers are like cash and cant be reversed.

Think twice before using etransfers.
Thanks for update, learn something everyday

Just feel funny they locked you out to protect you and after protect you twice, they remove your privileges lol
Banned
User avatar
Jul 17, 2008
11042 posts
3816 upvotes
in4red wrote: My accounts got unfrozen finally.
I was selling a digital item. I finished work late so he thought I was scamming him or ignoring him so he called his bank to file a report. They said the etransfer was reported as a “scam” and they locked my account for my protection, meanwhile I had to go a day without access to any of my funds.

But I got a call and they told me one more report and they’d revoke my etransfer privilege.

I also asked him what protections seller has if buyers can just claim scam and file a report. This isn’t Paypal, everywhere they throw the assumption that etransfers are cash equivalents which is absolute BS if they lock your funds and investigate the transaction and revert your privileges after 2 complaints.

He also said that there is essentially no buyer protection offerer, yet buyers can still report transactions as a scam in terms of materiality of the item you are selling, not solely because of unauthorized use.

Then he said that etransfers are risky because buyer can lie and claim fraud and there isn’t anything you can do. So someone can send you money for something, claim the item isn’t what it is, and get their money back.

I believe there is an internal dispute process with the banks acting as arbitrators, but they dont tell you since they want you to believe etransfers are like cash and cant be reversed.

Think twice before using etransfers.
Ok please tell us what bank/CU this is. I will DEFINITELY never deal with them. Horrible customer support
[OP]
Member
Aug 3, 2015
366 posts
260 upvotes
Toronto
Messerschmitt wrote:
Ok please tell us what bank/CU this is. I will DEFINITELY never deal with them. Horrible customer support
Meridian.
I will be moving my money from them once my rate expires.

Imagine having your funds locked during this crisis especially if you have a family. It was locked for technically 2 and a half days. I have heard other banks do this too so ymmv.

Buyer reporting etransfer as fraud is “unfortunately a risk” (he literally said that to me). So I believe the “fraud” buyer can report consists of item not as described or unauthorized activity, or did not arrive similar to paypal (which also rarely favours sellers).

I think it is ridiculous because you cant even call them since its a special team that deals with this. I think they also scrutinize your account during this ordeal because he said etransfer made for business are against the terms or some shit like that
Deal Fanatic
User avatar
Jun 19, 2001
8357 posts
2025 upvotes
I had that happen a long time ago with my TD account. Someone bought on ebay, then claimed fraud on everything they had bought. I messaged some of the others, they got a call, went in to the bank and it was fine. It was ~$200, I had a lot more then that in my account

For me, I never heard anything until I tried to use the atm. It wouldn't work, so I went in to the branch. The lady said she would take care of it, but disappeared for quite awhile. She came back and said there is fraud with your account, not unlocking it and you can't have any money. This was on a saturday, no one that could be reached.

So Monday I went to my own branch. The rep i was dealing with says just a minute and leaves, and the manager comes in. He has a printout of my account, starts pointing out to a big transfer from ING (which was my money). He says he will look into it the next day. Though stongly implying I did something wrong

I went balistic on them, got a VP working on it. Then a call back that my account was unlocked, and she would send me something ($20 gc for harveys). Then I got a call from the VP, then the branch manager who put $50 in my account too. I was really mad about how they handled that.
Sr. Member
Nov 6, 2015
867 posts
452 upvotes
Guelph, ON
This is why I advocate having at least two banks, I've heard these stories about accounts getting locked too often.

Top