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Old 01-16-2020, 07:42 PM   #1
Engine09
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I have a mortgage renewal issue with Scotiabank and MCAP that is becoming absolutely ridiculous.

Scotiabank has been incredibly unhelpful, to the point of utter frustration. I basically hate their guts now and will never give them another penny as long as I am alive. They brush me off when I request copies of documents, will not give me a name or number of anyone higher up who can help, basically want me to get lost. They got their $3,200 of penalties but there were screw ups all the way around and I have questions.

The broker is trying to be helpful but passed me off to the people who do the paperwork and titles, they passed me off to MCAP who told me I need to go back and speak with Scotiabank. This is a recurring theme and I've gone through the cycle a few times.

I have zero knowledge in the area. Which ombudsman should I get in touch with and how does that work?

Thanks!
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Old 01-16-2020, 08:00 PM   #2
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So you're trying to switch from Scotia to MCAP? I would assume you need a payout statement? I think if I were you I'd go to the branch in person...with an appointment...and just tell them to get you what you need. There's usually a person you can talk to in person. But banks are notoriously unhelpful.
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Old 01-16-2020, 08:19 PM   #3
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I have a mortgage renewal issue with Scotiabank and MCAP that is becoming absolutely ridiculous.

Scotiabank has been incredibly unhelpful, to the point of utter frustration. I basically hate their guts now and will never give them another penny as long as I am alive. They brush me off when I request copies of documents, will not give me a name or number of anyone higher up who can help, basically want me to get lost. They got their $3,200 of penalties but there were screw ups all the way around and I have questions.

The broker is trying to be helpful but passed me off to the people who do the paperwork and titles, they passed me off to MCAP who told me I need to go back and speak with Scotiabank. This is a recurring theme and I've gone through the cycle a few times.

I have zero knowledge in the area. Which ombudsman should I get in touch with and how does that work?

Thanks!


I have a little bit of a banking and lending background so I can try and assist. What exactly are you trying to accomplish or need to do? I don't think was very clear in your post. Are you trying to get some of your $3200 in penalties back?

Thanks
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Old 01-16-2020, 08:33 PM   #4
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god I hate Scotiabank, many, many, years ago on a mortgage renewal I had the Bank mortgage desk offer me a 'valued customer' rate, it wasn't spectacular just the expected .25 point or what ever it was to keep me away from a discounter.
I said ok draw up the papers etc, anyway came in a day later and they drew the papers up without the discount and didn't bother to mention it, if I hadn't read through the scum would have screwed me for 5 years, they didn't even try to pretend it was a mistake, when I pointed it out the greasy **** told me he couldn't get permission for the discount rate!!

Told him he could stick it and went to a credit union
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Old 01-16-2020, 08:49 PM   #5
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Oh, I've been to the branch in person twice and left incredibly frustrated. I'm basically googling "ombudsman" right now and trying to figure out which one I should call and how that works.

I'll try to be succinct:

-Scotia renewal rate sucks, broker gets me great rate with MCAP
-I sign MCAP documents 14 days before renewal date
-Either MCAP sent payout statement request late or Scotia dragged their ass
-$3200 in penalties added to mortgage, I fight with Scotia, they refuse
-I tell broker I can't proceed with MCAP, I do not sign updated doc and DO NOT pay $900 portion of penalties by credit card
-MCAP proceeds anyways 6 days later, do not know why
-MCAP suggests "reversing" mortgage back, Scotia says not possible
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Old 01-16-2020, 08:54 PM   #6
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Shouldn’t your broker have handled all this? Sorry to hear.
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Old 01-16-2020, 09:03 PM   #7
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Maddening! See if mcap has any perks they could throw in to ease the pain?
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Old 01-16-2020, 10:14 PM   #8
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Broker gave it a shot, got zero info out of anyone and basically gave me MCAPs general number and told me to give them a call. I've been on hold with MCAP for over an hour twice when I'm supposed to be working. They do not pass on information as I ask, each time I speak to someone I have to explain the entire scenario again from the beginning. Last conversation I had with MCAP they told me there is nothing they can do and I need to call Scotiabank.

They are all passing the buck and basically hoping I'll shut up and go away.
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Old 01-16-2020, 10:49 PM   #9
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Banking is federally regulated so I think you can file a complaint here?

https://www.obsi.ca/en/index.aspx
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Old 01-16-2020, 10:50 PM   #10
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Sounds like a perfect storm of: Scotiabank being an ahole for not cooperating (because nobody likes to lose business), Lawyer being lazy (cause they’d rather be pumping through easier files than be tied up with admin work) or MCAP’s funding department is incompetent.

I agree, the lawyer (you didn’t mention any lawyers in this yet) should be handling this for you. However, if there’s one motivated party in all of this, it should be MCAP as they are acquiring your business.

Find any way to get a hold of the MCAP funding manager or a higher up. If you were at a point where you were signing MCAP docs and they proceeded anyways, you need to know exactly why it failed. Unless you had some undisclosed Liens or debt, this is passed the desk of the broker and underwriter and should be between your lawyer and MCAP funding dept. This could be on MCAP, not Scotiabank
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Old 01-16-2020, 11:06 PM   #11
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Go up the chain and perhaps email the district VP, they usually have more pull and want to try and void issues from going on and on and on due to cost and productivity concerns. You may need to do a little digging around for find out who they would be. Here is what I found for central Calgary. https://ca.linkedin.com/in/rod-wendt-85411017

I would emphasis the amount of time you and the Scotia have already spent on this file, none of it is beneficial to anybody. Speak to them in sales terms as that is what they know best. Something along the lines of "You want your sales staff selling and helping client's, not dealing with mortgage paperwork on business LEAVING the bank because I can't get decent renewal rate"

Continue to fight and if you think you have been officially wrong and have all your paperwork and everything in order, try going to the media. CBC Go Public, CTV Calgary, Global Calgary etc.

If that also doesn't suit you, than you can go up the chain via the official process. There is some work to be involved here as well. If Scotiabank screwed you over for $3+k in fee's, look at the time spent as how long you need to work for $3k.

https://www.scotiabank.com/content/d...-Complaint.pdf

Hang in there, I know it's not fun and hopefully your issue can be resolved to your satisfaction.
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Old 01-16-2020, 11:34 PM   #12
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Shouldn’t your broker have handled all this? Sorry to hear.
I’m sorry to say this but you likely won’t get anything back. This is the importance of working with a good broker. Banks will drag their feet providing payout statements so your broker should have told you to renew into a 6 month open mortgage with Scotiabank so that when the inevitable happens and the payout statement is late you would be renewed then switched to MCAP free of charge when they finally provide the payout.

There are no lawyers involved in transfers it’s handled by FCT. If the mortgage went to MCAP your broker would have still been paid maybe try and cut a deal with them to help you with your cancellation fees.
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Old 01-16-2020, 11:55 PM   #13
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Advice above about escalating with Scotia is good.

Looking for blame from your broker and MCAP is pointless. Neither can just magically make Scotia cooperate. However it is on them to submit the payout request on time and with the correct details. A good broker would have managed the situation to make sure the transfer went smoothly but it’s hard to tell who is at fault.

I’d ask the broker for proof of submission from MCAP if possible. Scotia isn’t likely to provide any proof of when they followed up with MCAP but maybe if you escalate and raise a stink they’ll relent.

The more time you take up of their higher ups the more it costs them. Eventually they may finally give in.
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Old 01-17-2020, 12:41 PM   #14
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Lot of great advice and insight, thank you very much.

My broker did advise me to request an open term. I had a huge blowout on the phone with Scotiabank, they reviewed recordings of a call when I informed them I would not be renewing and going with someone else. Since I did not specifically say the words "open term" they told me I'm out of luck. My inexperience, first time going through the renewal process.

But, I just found out that the request for payout was sent to Scotiabank 7 days before the renewal date. They dragged their ass, waited until 1 day later then added $3,200 and sent the payout details.

Scotiabank brushed me off again yesterday, saying they do not have a dated copy of the request to send me.
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Old 01-17-2020, 01:26 PM   #15
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Oh, Scotiabank...

I agree, find a vp email or president email. If you want to force the issue, something like that will get you action...
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Old 01-17-2020, 03:13 PM   #16
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Scotiabank is without a doubt the worst in the industry for handling payout statements. When they do finally get to it, they set an expiry of 24 hours on it, which makes things very difficult for FCT and the new lender, especially if they issue it on a Friday. From what I understand, it's not even 24 business hours.

Unfortunately, you're most likely out of luck because you didn't ask for an open term. However, if you do want to try to go up the ladder with them, you can reference the "FCT Payout Authorization Form" that reads:

Quote:
If this mortgage is due for renewal on or around the effective date of this statement, consider this your instruction to not renew this mortgage, pending payout of it. Should the mortgage have to be renewed, consider this your instruction to renew the mortgage only for a 6 month open term. These instructions are to have priority over any other renewal letter, document or other instrument you may have sent to me/us.
This is the form you would have signed for your broker, who would have submitted it to MCAP, who would have forwarded it to FCT, and then to Scotia. I don't actually know if it's binding, as I still always advise clients to personally request an open mortgage, and FCT agents advise of the same, which leads me to believe it is not binding until the customer requests it personally. Again though, worth a shot IMO.

Last edited by MillerTime GFG; 01-17-2020 at 03:19 PM.
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Old 01-18-2020, 01:30 AM   #17
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Lot of great advice and insight, thank you very much.

My broker did advise me to request an open term. I had a huge blowout on the phone with Scotiabank, they reviewed recordings of a call when I informed them I would not be renewing and going with someone else. Since I did not specifically say the words "open term" they told me I'm out of luck. My inexperience, first time going through the renewal process.

But, I just found out that the request for payout was sent to Scotiabank 7 days before the renewal date. They dragged their ass, waited until 1 day later then added $3,200 and sent the payout details.

Scotiabank brushed me off again yesterday, saying they do not have a dated copy of the request to send me.

I would push back on this once more and like I suggested above, getting a higher up who has the authorization to deal with this. You mentioned that they reviewed the call and that you didn't specifically mention "open" mortgage, I don't think that should really matter. If you conveyed to them what you were or are trying to do and were looking for flexibility, than that should be sufficient.

Don't forget, this isn't YOUR business, it's the bank's business to advise clients on financial matters, hence the need for banks and bankers.

It would be one thing if you had given them specific instructions and direction on what to do and they processed it, and you were in the wrong.

In this case it appears your broker sent a request PRIOR to the maturity and they didn't act on it in time. This isn't YOUR problem and I don't think YOU should be paying for it.

If you are using a real estate lawyer for this or any other transactions, have them get involved here. This sounds like an open and shut case as Scotiabank really wouldn't be out any actual cash, more of a timing and backdating issue.

From what I gather or assume is that the mortgage auto renewed into a new term and than they want to charge you a pre-payment penalty to get out of it. That's all fine from a paperwork and contract perspective but in YOUR case you had given them instructions to port the mortgage to another lender PRIOR to maturity.

If this was the investment industry and you had provided them with written instructions to sell a security on a specific date, they didn't and now the market value is lower, they are responsible financially.

Unless I am missing something from their end, I can't understand how this battle is continuing.

May I ask which branch this is? A friend of mine is also having an issue with renewing his Scotia mortgage and the advice and rates he is being offered to me sound insane. It sounds like he is dealing with idiots beyond belief.
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Old 01-18-2020, 03:27 AM   #18
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But you're richer than you think.

I would not give them any business for that reason alone.
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Old 01-18-2020, 03:15 PM   #19
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If this mortgage is due for renewal on or around the effective date of this statement, consider this your instruction to not renew this mortgage, pending payout of it. Should the mortgage have to be renewed, consider this your instruction to renew the mortgage only for a 6 month open term. These instructions are to have priority over any other renewal letter, document or other instrument you may have sent to me/us.
This is the exact wording that I just discovered was on the payout request, which was sent to Scotiabank 7 days before my renewal date. They dragged their ass, waited until 1 day after the renewal date then added on the penanties.

After asking Scotiabank a 2nd time for a DATED copy of the payout request showing when it was received they sent me a copy without a date. I specifically asked for a dated copy stating this detail was most important.

I'm going to get in touch with someone higher up at Scotia, I'm about to lose my temper with the current guy I've been dealing with.

Braeside location on Southland.
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Old 01-18-2020, 04:01 PM   #20
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But you're richer than you think.

I would not give them any business for that reason alone.
You mean for that slogan? I agree because I think sends a terrible message to some people, who likely least need that kind of encouragement.
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