Don’t Assume It’s Okay Just Because It’s from a Bank. Check Your Credit Card Statements for These 5 Errors.

If you have gotten into the habit of paying your credit card bill without a second thought simply because it’s from a bank, this news is for you.

A recent enforcement action against Canada’s largest bank, RBC, serves as a timely reminder that even routine account errors can add up.

Here’s what happened: The Financial Consumer Agency of Canada (FCAC) has fined RBC $4.25 million after discovering that the bank issued inaccurate credit card statements to nearly 228,000 customer accounts. The issue arose when some customers received replacement cards after reporting fraud, but certain credits were not transferred correctly to the new accounts; the FCAC said this resulted from inadequate operational controls and oversight within RBC.

In its defense, RBC stated that it self-reported the issue to the regulator and fully cooperated with the investigation. The bank also claimed it refunded more than $22.4 million to affected customers and donated an additional $299,000 to charity on behalf of customers it could not locate.

This case serves as a useful reminder for all of us to review our statements carefully, especially after we or the bank have made changes to our accounts.

5 Things to Check the Next Time You Receive Your Credit Card Statement: 

1. Check that Refunds and Credits Have Been Applied: If you’ve recently returned an item, disputed a charge, or received a statement credit, ensure it appears on your account. Missing credits can affect both your balance and the interest you are charged.

2. Review Your Statement After Receiving a Replacement Card: If your credit card was replaced because it was lost, stolen, or compromised due to fraud, compare your first statement with the last one from your previous card. Outstanding credits, payments, and balances should be transferred correctly.

3. Look for Unfamiliar Fees or Interest Charges: An incorrect balance can sometimes trigger additional interest or fees. Even small errors are worth questioning if something doesn’t look right.

4. Pay Extra Attention After Switching Products or Accounts: Whenever your bank moves you to a new credit card or account, check that previous transactions, automatic payments, and credits have all carried over properly.

5. Report Problems as Soon as You Notice Them: If you believe your statement contains an error, contact your bank promptly. Keep copies of your statements and any correspondence until the issue has been resolved.

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