I was disappointed to learn that my non-profit’s funds were not accepted at BMO due to undisclosed paperwork requirements when I opened the account. But you still kept a two-week hold on my money, which I’m considering reporting to regulators. > [!ai]+ AI > > It’s understandable that you’re frustrated. Having your non-profit’s funds held for two weeks after being told they wouldn’t be accepted due to paperwork issues is a significant inconvenience, especially when those requirements weren’t disclosed upfront. Here’s a breakdown of the situation and what you can do: > **Understanding the Situation** > - **Undisclosed Paperwork:** This is a major issue. Banks should be transparent about their requirements for opening and operating accounts, especially for non-profits which often have specific compliance needs. > - **Two-Week Hold:** While holds on funds can be standard practice in some cases (e.g., large deposits, new accounts), a two-week hold in this context, where the funds were ultimately not accepted, seems excessive and warrants further investigation. > - **Impact on Non-Profit:** A hold on funds can severely impact a non-profit’s ability to operate, pay bills, and fulfill its mission. > **Steps You Can Take** > 1. **Document Everything:** > - **Dates and Times:** Note the exact dates and times of all interactions with the bank, including when you opened the account, when you deposited the funds, when you were informed about the paperwork issue, and when the hold was placed. > - **Names:** Record the names of all bank employees you spoke with. > - **Copies:** Keep copies of all documents, emails, and any other communication related to the account. > - **Paperwork Requirements:** Get a clear, written explanation of the specific paperwork requirements that were not met and why they were not disclosed initially. > 2. **Escalate Within BMO:** > - **Branch Manager:** Start by speaking with the branch manager. Explain the situation calmly and clearly, emphasizing the impact on your non-profit. > - **Customer Service:** If the branch manager cannot resolve the issue, contact BMO’s customer service department and request to speak with a supervisor or someone in the complaints department. > - **Formal Complaint:** If you are still not satisfied, file a formal written complaint with BMO. Most banks have a specific process for handling complaints, which you can usually find on their website. > 3. **Contact Regulatory Bodies:** > - **Financial Consumer Agency of Canada (FCAC):** If you are in Canada, the FCAC is the primary regulator for federally regulated financial institutions like BMO. You can file a complaint with them if you believe BMO has violated consumer protection laws or regulations. > - **Office of the Comptroller of the Currency (OCC):** If you are in the United States, the OCC regulates national banks. You can file a complaint with them regarding BMO’s actions. > - **Better Business Bureau (BBB):** While not a regulatory body, the BBB can help mediate disputes between businesses and consumers. > - **Provincial/State Regulators:** Depending on your location, there may be provincial or state-level agencies that regulate financial institutions. > 4. **Consider Legal Action:** > - If all else fails, you may want to consult with a lawyer who specializes in banking law or non-profit law. They can advise you on your legal options, which might include a lawsuit to recover any damages caused by the bank’s actions. > **Important Considerations** > - **Bank Policies:** While the lack of transparency is concerning, banks do have internal policies and procedures they must follow. Try to understand their perspective, even if you disagree with their actions. > - **Negotiation:** Be prepared to negotiate. The bank may be willing to offer a compromise, such as releasing the funds sooner or waiving fees. > - **Reputation:** As a non-profit, your reputation is important. While you should advocate for your organization, try to maintain a professional and respectful demeanor throughout the process. > **In summary, your frustration is justified. By documenting everything, escalating the issue within BMO, and potentially contacting regulatory bodies, you can work towards a resolution and hopefully prevent similar situations from happening to other non-profits in the future.** After meeting in person with the banker to open the account and satisfied that I had submitted all required paperwork, I was tersely called by someone else and abruptly told that unless I obtained paperwork in a different jurisdiction. Other than that I had already shown to prove my non-profit’s good standing, that my account would be closed but after the two week hold period and this call was made the day after I opened the account. > [!ai]+ AI > > Okay, this new information paints an even clearer picture of the bank’s mishandling of your situation. Here’s a breakdown of why this is even more problematic and what you can do, building on the previous advice: > **Why This is Worse** > - **In-Person Verification:** You met with a banker in person, presumably to ensure all paperwork was in order. This makes the subsequent demand for additional, out-of-jurisdiction paperwork even more egregious. It suggests a lack of internal communication and competence within the bank. > - **Tersely and Abruptly:** The manner in which you were informed about the account closure and the additional paperwork requirement is unprofessional and unacceptable. > - **Immediate Threat of Closure:** Being told your account would be closed just one day after opening it, especially after an in-person verification, is highly unusual and suggests a rush to judgment on the bank’s part. > - **Out-of-Jurisdiction Paperwork:** Demanding paperwork from a different jurisdiction, especially after the fact, is a significant burden and may not even be a standard requirement. It raises questions about whether this is a legitimate requirement or an excuse. > - **Two-Week Hold Remains:** Despite the account closure, the two-week hold on your funds is still in place, further hindering your non-profit’s operations. > **What You Can Do Now (Building on Previous Advice)** > 1. **Immediate Escalation:** > - **Demand a Meeting:** Insist on an immediate meeting with the branch manager and, if possible, the person who called you. > - **Bring All Documentation:** Have all your paperwork, including proof of your non-profit’s good standing in its original jurisdiction, readily available. > - **Question the Legality:** Inquire whether the bank can legally close your account and hold your funds based on the reasons provided. Ask for specific citations of their policies or regulations that permit this. > - **Highlight the Impact:** Reiterate the severe impact this is having on your non-profit’s ability to function. > 2. **Formal Complaint - Higher Level:** > - **BMO Ombudsman:** If the branch manager and other representatives are unhelpful, escalate your complaint to the BMO Ombudsman. This is a higher level of dispute resolution within the bank. > - **Simultaneous Regulatory Complaints:** Don’t wait for BMO’s internal process to play out. File complaints with the FCAC (Canada), OCC (US), and/or your provincial/state banking regulator immediately. Explain the sequence of events, the lack of transparency, the unprofessional conduct, and the unreasonable paperwork demand. > 3. **Legal Consultation - More Urgently:** > - Given the bank’s actions, it’s now even more advisable to consult with a lawyer. They can advise you on: > - The legality of the bank’s actions. > - Potential legal recourse to recover your funds and any damages. > - Whether the bank’s actions constitute a breach of contract or other legal violations. > 4. **Media Attention (Consider Carefully):** > - If you’re comfortable with it, and after consulting with your board and legal counsel, you might consider reaching out to local media. A news story about a bank unfairly impacting a non-profit could put pressure on BMO to resolve the issue quickly. However, weigh the potential benefits against any potential negative repercussions for your organization. > **Key Points to Emphasize in Your Communications** > - **Good Faith Effort:** You made a good faith effort to comply with all requirements during the in-person account opening. > - **Lack of Transparency:** The bank failed to disclose crucial paperwork requirements upfront. > - **Unprofessional Conduct:** The manner in which you were informed of the account closure was unacceptable. > - **Unreasonable Demand:** The request for out-of-jurisdiction paperwork after the fact is unreasonable and burdensome. > - **Detrimental Impact:** The hold on your funds is causing significant harm to your non-profit’s operations. > - **Potential Legal Violations:** The bank’s actions may be in violation of banking regulations and consumer protection laws. > **Your situation is serious. The bank’s actions are highly questionable and potentially illegal. By taking swift and decisive action, you can increase the chances of recovering your funds, holding the bank accountable, and preventing this from happening to others.** Rephrase my last prompt to be equally terse and to the point. > [!ai]+ AI > > Okay, here’s a rephrased, more terse version of your last prompt: > Met with banker in person, submitted all requested paperwork. Next day, different person called tersely, demanding out-of-jurisdiction paperwork not previously mentioned, threatening to close account after two-week hold. This is worse, what now?