Disappearing deposits: What happens when banks lose your money | Page 4 | General financial discussion | Discussion forum

Norman1 said
Car buyer likely refused initial request to give another $21,000 certified cheque after his/her bank asked for indemnity for the lost $21,000 of certified cheques. An indemnity bond would have cost 2% to 3% or $400 to $600.

Doug said
Not exactly and unlikely. As both a former bank employee and a bank customer, I have never seen, or been asked, to purchase an indemnity bond by a Canadian financial institution. It's always just an indemnity form the customer signs with their financial institution.

Indemnity form is not enough if the customer isn't good for the $21,000 or whatever the amount of the lost certified cheques or bank drafts is.

As well, the buyer would be stupid to sign the $21,000 indemnity. Buyer has already had $21,000 debited to pay for the certified cheques. Agree to pay another $21,000 to the bank should those "lost" certified cheques end up being not "lost" and cashed?

Bad advice from poorly-informed bank employees is why a person would recklessly send a $846,000 bank draft by courier uninsured. As one couple found out, TD asked for more than their signature on some forms to replace the $846,000 draft when the draft was lost by UPS.

Last I know, that widow, who lost the $273,225 bank draft from her lawyer, is still out the money from the sale of a rental property. Why doesn't she just sign the indemnity form and have a $273,225 replacement draft in her hand? Must be too obvious for her, her lawyer, her family members, and the bank staff to see that solution to her $273,225 predicament.