Personal Finance

Transfer sent to wrong institute

  • Last Updated:
  • Sep 23rd, 2020 10:13 pm
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[OP]
Newbie
Mar 22, 2009
41 posts
5 upvotes

Transfer sent to wrong institute

My transfer request was incorrectly sent to the wrong institution. This was a manual transfer of a registered account as one of the institutes involved does not do electronic transfers. I am stressed out and trying to reach anyone I can in getting this resolved. This was for a relatively large amount. Does anyone have thoughts on what else I should do beyond customer care? Thank you in advance.
4 replies
Deal Addict
User avatar
Jun 23, 2009
1091 posts
63 upvotes
YUL
Actually happens sometimes.
You'd talk to your bank and they'd talk to the receiving and intermediary institutions to reverse the transfer. Expect to pay maybe $150 in fees.
Talk to your relationship manager/banker.
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Deal Fanatic
Jul 4, 2004
8583 posts
1521 upvotes
As a public service announcement, always test any external links or manual transfers with a small amount of funds first. Never assume anything as the cure to this issue could be as bad as the problem. Deal with the bank/credit union that you had initiated the transfer with and they will take it from there. It also can't hurt to contact the other institution as well and give them a heads up on what has happened.
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[OP]
Newbie
Mar 22, 2009
41 posts
5 upvotes
Thank you CrazyBubba and Frankie3s for you response.

Update: The sending institution was at fault. They sent it to the wrong institution and are now looking to reverse / correct it. I have lost a few hours of time and an opportunity to invest the funds. That's not too bad given where the world is right now.

What can we all learn from this - if you are transferring assets / accounts from one bank to another:

1. Ask if the transfer is electronic. In my case it was *manual*. The source institution literally receives a fax for the request, and then prepares a draft and puts it in regular Canada Post mail for the destination bank :facepalm: They will not tell you this in advance but this is literally what happens as I have been informed. So imagine your draft can also also get lost in the mail.

2. You need to be on top of your transfer and pretend as if one of the banks will screw up. Does not happen all the time - but when it does, they don't lose anything. Literally how the banking world operates is this: Your mistake we penalize you, our mistake, we still penalize you :rolleyes:

3. Bear in mind the average transfer time is between 2 to 4 weeks - from the time a request is received to the time you should see the assets / cash fully transferred over. I kept emailing all the time in between this period to the receiving institute but unfortunately they kept pushing back saying wait for the recommended time frame

4. If the transfer fails, there should be a rejection notice provided to the receiving institute. You will need to ask for this as it does not appear anywhere automatically for you

In my case, both the receiving and source institutions are major banks in Canada. I was fortunate to have a reasonable person at the other end to help expedite a resolution (still in progress).

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