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Email this8:51 am
July 19, 2013
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April 9 Promo Interest was paid for the 2.5% Promo. We were shorted almost $100.00. Promo interest paid was effectively 2.36%, NOT the 2.5% we had expected. When we challenged PCF we were told interest had been calculated correctly. We ESCALATED to Customer Care Dept to be told again interest was calculated correctly. Customer Care Mgr claimed promo interest is calculated on the average balance over the promo period and that we were calculating incorrectly. He stated many customers have complained about the methodology. He claimed executive management is well aware SOME customers are being short changed but it is a business decision to pay out under this methodology. He agreed on a one-time goodwill basis to credit us the almost $100.00. We have tried numerous interest calculation scenarios but cannot replicate the methodology PCF used to make our April 9 payment. We wish to bring this issue to everyone's attention to check they have received the correct Bonus. Under the 2.5% program interest was calculated as follows for the Non-registered Savings Accounts: Regular Interest 1.30% to Feb 4, 2015 + Bonus Interest 1.20% = 2.5% and Regular Interest 1.05% from Feb 5, 2015 + Bonus Interest 1.45% = 2.5%. We feel PCF's advertising is deceptive and PCF is hiding behind very fine legal print most people cannot understand. Please check to make sure you got your full 2.5%. For those enrolled in the current 2.6% promo make sure in July 2015 you have received your full 2.6%. Apparently it is the same methodology. And by-the-way we do know how to Correctly Calculate Interest! PCF should adopt the SIMPLE method Tangerine uses and pay out each and every month.
9:50 am
June 24, 2014
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JW, did you try: Regular Interest 1.30% to Feb 4, 2015 + Bonus Interest 1.20% = 2.5% and Regular Interest 1.05% from Feb 5, 2015 + Bonus Interest 1.20% = 2.25%. (I can't remember when they dropped to 1.05%. Assume it is Feb 5.) Regular interest rate is subject to change any time, as in their terms.
If the amount a customer complains is not big, banks usually satisfy him/her as "goodwill" to make the customer happy. If the customer keeps complaining, it will cost the bank even more.
1:52 pm
September 17, 2014
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That should not be the case as it states Promo rate of 2.5 % is a combination of both, so if the regular rate decreases the promotion rate should increase to equal 2.5 or for the latest promo 2.6%
"The special annual interest rate of 2.5% is a combination of the regular annual interest rate set by President's Choice Financial payable on an Eligible Account balance, plus promotional interest ("Promotional Interest") that is calculated during the Offer Period."
4:55 pm
July 19, 2013
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James1900, yes I tried the 2.25% scenario on the assumption PCF may have used 1.20% in error. This did not yield what PCF paid me on April 9. Maybe others have experienced being shorted. Don't just rollover and accept PCF representatives' word they calculated correctly. If PCF advertises 2.5% or 2.6% they should pay the full 2.5% or 2.6% and not short customers.
6:59 am
September 11, 2013
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JW, you said Customer Care Mgr told you "promo interest is calculated on the average balance over the promo period". Maybe a dumb question, but wouldn't that mean someone depositing $100K on the first day of the promo period would get the same promo interest as someone who deposited $100K on the last day of the promo period? Average balance "over the promo period" would be the same.
9:08 am
October 27, 2013
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There was a significant thread over on CMF http://canadianmoneyforum.com/.....est-payout that went through all the machinations, with I believe, the ultimate conclusion being the calculations were correct, albeit terms and conditions being a little confusing (or deceitful), not sure which.
See the last few pages of that thread in particular. I have interest in this since I am in this latest 2.6% promo ending June 30.
11:23 am
June 24, 2014
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JW said
James1900, yes I tried the 2.25% scenario on the assumption PCF may have used 1.20% in error. This did not yield what PCF paid me on April 9. Maybe others have experienced being shorted. Don't just rollover and accept PCF representatives' word they calculated correctly. If PCF advertises 2.5% or 2.6% they should pay the full 2.5% or 2.6% and not short customers.
JW, please see my TFSA account information:
Apr 09, 2015 INTEREST PROMOTIONAL INTEREST $6.28 $6.96
Mar 31, 2015 INTEREST $0.28 $0.68
Mar 10, 2015 TRANSFER OUT WITHDRAWAL $1,001.00 $0.40
Feb 27, 2015 INTEREST $1.17 $1,001.40
Feb 11, 2015 TRANSFER OUT WITHDRAWAL $1,007.00 $1,000.23
Jan 30, 2015 INTEREST $2.21 $2,007.23
Dec 31, 2014 INTEREST $1.89 $2,005.02
Dec 19, 2014 INTEREST PROMOTIONAL INTEREST $2.01 $2,003.13
Dec 09, 2014 TRANSFER IN CONTRIBUTION $1,000.00 $2,001.12
Nov 28, 2014 INTEREST $0.62 $1,001.12
Nov 20, 2014 TRANSFER IN CONTRIBUTION $500.00 $1,000.50
Nov 05, 2014 TRANSFER IN CONTRIBUTION $500.00 $500.50
Oct 14, 2014 TRANSFER IN CONTRIBUTION $0.12 $0.50
Calculation:
2014-11-1 to 2015-2-4: promotion rate 1.2%, actual rate: 1.206622%. (1+0.012/12) ^ 12 - 1.
2015-2-5 to 2015-3-31: promotion rate 1.45%, actual rate: 1.459675%. (1+0.0145/12) ^ 12 -1.
2014-11-5 to 2014-11-19: 500 * 15 * 1.206622 / 100 / 365 = 0.2479
2014-11-20 to 2014-12-8: 1000 * 19 * 1.206622 / 100 / 365 = 0.6281
2014-12-9 to 2015-2-4: 2000 * (23+31+4) * 1.206622 / 100 / 365 = 3.8347
2015-2-5 to 2015-2-10: 2000 * 6 * 1.459675 / 100 / 365 = 0.48
2015-2-11 to 2015-3-9: 993 * 27 * 1.459675 / 100 / 365 = 1.0722
0.2479 + 0.6281 + 3.8347 + 0.48 + 1.0722 = 6.263.
You see they paid 6.28 on Apr 9. It is as good as my calculation.
6:44 am
January 30, 2009
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I also tried to calculate the interest I was owed and it was very complicated. I don't see a reason for PCF to make things this difficult other than by design. Also, since the money isn't paid into your account until after the promotion is over, the rules about the promotion have disappeared from the PCF website so by the time you do the calculation, you don't have their terms and conditions, or the effective dates.
11:52 am
October 21, 2013
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I've never liked PC because of the way they operate, but, next time they have a promo, it would be a good idea to paste in the T&C so that everyone can refer to them. Always a good idea to keep them anyway, to refer to.
12:43 pm
June 24, 2014
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I like PC Financial very much. It is the only bank that offers free cheque-books. And there are people in Superstore who can help customers with paperwork to open accounts. The way they offer promotions is not complicated at all. I even did the interest calculation by hand. Of course, with a software, it is less than a piece of cake.
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