PC Finacial bank accounts

EdRenkema

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#1
Today I tried to open a new PC Finacial bank account, I have another one for a rental property. When speaking to them on the phone they asked me what the purpose of the account was and I indicated it was for depositing rent payments and paying bills on a property. They immediately rejected my application since it contravenes their rules since it is considered a business account. I`m aware of many REIN investors who have multiple PC accounts, is this in fact illegal or better termed fraudulent?
All I need to tell them really is its for making deposits and paying bills on my own house and it would be OK.
How does everyone else feel about this?

Here`s another example: I have a phone line dedicated strictly to my fax machine and my primary phone is my cell. If Bell Canada finds out this is a fax line for business purposes they would charge me a much higher rate for what is essentially the same phone line. So I just don`t tell them and why should I, I`m paying the going rate for a standard phone line.
 

RobMacdonald

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#2
Hi Ed,

I haven`t come across that dealing with PC Financial and I`ve got 5 accounts with them. I don`t think I`ve even been asked that question. If I was asked, I would just say that it`s going to be for savings and paying some bills
 

marcola

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My wife and I have 4 accounts with PC - and never was I asked what the account was for.
Sometimes to less you tell people, the better off you`ll be.
 

21krunner

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Humm,
We do know that all banks have an increasing focus / accountability on identifying potential money laundering activities. It sounds to me like the question was likely part of that agenda. You probably just ran into an over zealous interpretation of the bank`s AML protocols.

I presume that if you hold title personally you are within the law (if not PC internal guidelines) to pay your bills etc. using a personal account. In fact when opening a business account I have always been asked for a copy of the first page of the articles of incorporation. If you have an incorporated company holding title I can see PCF`s position.

Thats my common sense opinion......but I am no lawyer.
 

TodorYordanov

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#6
Ed, since you are running everrything out of your name, not a company, I don`t see how this is any different than any other "business like" activities that you may be doing with your own money.

Todor
 

kboughen

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#7
QUOTE (EdRenkema @ Jan 2 2009, 10:35 AM) is this in fact illegal or better termed fraudulent
Hi Ed,

I use PCF accounts for my properties, I have always added new accounts online and have therefore never spoken with a representative (note: if you don`t request an over-draft the online process is immediate)

As all my properties are in my personal name, and these are personal accounts, I do not believe there to be any fraudulent activity.
 

EdRenkema

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QUOTE (TodorYordanov @ Jan 2 2009, 02:11 PM) Ed, since you are running everrything out of your name, not a company, I don`t see how this is any different than any other "business like" activities that you may be doing with your own money.

Todor


Good point.
 

EdRenkema

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#9
QUOTE (kboughen @ Jan 2 2009, 02:28 PM) Hi Ed,

I use PCF accounts for my properties, I have always added new accounts online and have therefore never spoken with a representative (note: if you don`t request an over-draft the online process is immediate)

As all my properties are in my personal name, and these are personal accounts, I do not believe there to be any fraudulent activity.


I didn`t know I could add new accounts online, I will check it out.

Thanks Kevin
 

greg12

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#10
One thing about adding extra accounts though is that they will hit your Credit Bureau with a visible "Inquiry" each and every time! You can avoid this by opening all the accounts you need on the same day - hence only one inquiry is needed. I asked to speak with a manager who confirmed that this was their policy.

QUOTE (EdRenkema @ Jan 2 2009, 04:17 PM) I didn`t know I could add new accounts online, I will check it out.

Thanks Kevin
 

kboughen

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#11
QUOTE (greg12 @ Jan 3 2009, 05:20 AM) One thing about adding extra accounts though is that they will hit your Credit Bureau with a visible "Inquiry" each and every time! You can avoid this by opening all the accounts you need on the same day - hence only one inquiry is needed. I asked to speak with a manager who confirmed that this was their policy.
The telephone staff also told Ed that he could not use their accounts to deposit rent cheques and pay bills
.

I`m not convinced that when an existing client, in good standing, adds an account on-line without overdraft privileges, there is a "hard hit" to the bureau. If there was a "hard hit", it would have a negligible impact on the credit score as it would only occur when you purchase a new property and open an additional account.

My recommendation would be to add accounts as you need them vs opening multiple accounts in anticipation of multiple purchases.
 

EdRenkema

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#12
QUOTE (kboughen @ Jan 5 2009, 09:51 AM) The telephone staff also told Ed that he could not use their accounts to deposit rent cheques and pay bills
.

I`m not convinced that when an existing client, in good standing, adds an account on-line without overdraft privileges, there is a "hard hit" to the bureau. If there was a "hard hit", it would have a negligible impact on the credit score as it would only occur when you purchase a new property and open an additional account.

My recommendation would be to add accounts as you need them vs opening multiple accounts in anticipation of multiple purchases.


Good point Kevin, I tried to open a hi interest account same time but could only do one. It will need to be a separate transaction each account. They also require a current utility and phone bill to be faxed or mailed in each additional account. Small inconvenience in my mind for the convenience of doing it all online!
 

greg12

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#13
I found out about the hits when I pulled my own credit bureau in December. I didn`t apply for any lending - just plain checking accounts. And yes I am in very good standing with them. I was upset because the staff never got my consent to pull my bureau. But then they referred me to some clause in the membership agreement I had signed 3 years ago before I became a sophisticated investor
.

If you know the layout of an Equifax report, you`ll notice they group the inquiries into "Soft Hits" and "regular" hits. PC`s hits are in the "regular" section and look just like any other credit-seeking inquiry. I am not clear how much of an impact it had on my score however. I encourage everybody to pull their own bureau at least 2ce a year like Don advises. You will see stuff you never expected.



QUOTE The telephone staff also told Ed that he could not use their accounts to deposit rent cheques and pay bills
.

I`m not convinced that when an existing client, in good standing, adds an account on-line without overdraft privileges, there is a "hard hit" to the bureau. If there was a "hard hit", it would have a negligible impact on the credit score as it would only occur when you purchase a new property and open an additional account.

My recommendation would be to add accounts as you need them vs opening multiple accounts in anticipation of multiple purchases.
 

greg12

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#14
Just an update to this topic. I found out that you can "opt out" of PC`s credit bureau inquiries. But in order to do this:

1. You must be in a branch or "Pavilion" with ID (does not work on phone or internet)
2. You must be an existing client whose credit file has been accessed at least once before
3. This only applies to opening checking/savings accounts (not loans, credit lines etc)
4. At the start of the transaction, you must clearly advise the staff member that you do not wish for your credit bureau to be accessed.
5. She/he will then have you sign a form, and henceforth PC will not access your credit bureau when you are opening new accounts! If they don`t know what you are saying (happened to me), then have them call their "boss" for guidance.

Again, the default procedure is for PC to access your credit file each & every time you open an account. Anybody wanting to avoid this must follow the above process. Good luck!
 

jkcomm

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#15
I see that everyone is a PCF fan here!


Quick question - is it better to have one account per property or one account for all properties?

James