Banks Right to Set-off after Completion of Consumer Proposal
I filed a Consumer Proposal in 1996. It was fully paid in 1998, and I received a Certificate of Full Performance.
One of the creditors included in the proposal was the Royal Bank. I have not dealt with them since then. My parents, however, have always banked with them. My parents are now disabled and depend on me for many things. As a result, they want to add me as a joint holder on one of their bank accounts so I can buy groceries for them, pay their bills, etc.
The bank, however, said that they would seize any money in the account now or deposited in the future if my name is added to the account due to my past debt with the bank. They also said interest has continued to accrue on the now legally discharged debt.
Does the bank still have the right to set-off and to accrue interest after all these years even though I fulfilled my obligations under the proposal? My credit reports and the public database of insolvencies show this to be true.
The bank has no right to take any of the funds, since you do not owe them any money.
The completion of your consumer proposal clears your past debt with them.
Further, the bank cannot deny you their services, simply because you filed a consumer proposal:
Earl Sands, Licensed Insolvency Trustee