Refund of CIBC GIC deducted more than 400 dollars

[edaxe]

So, I've canceled my GIC from India amid the pandemic and asked for a refund. It was approved and they sent me about 400 Canadian dollars less than what the gic was worth.
So like they sent me 9484 CAD instead of 9980 CAD. What do I do?

When I asked them before initiating a refund, the support team told me the exchange rate would be the same as the portal used for applying. I'm so confused They kinda deducted my dad's 1-month salary at once with false information and no details.

 

[jweekend]

Early withdrawal fees?

 

[edaxe]

Early withdrawal fees?

Nope, I don't think GIC refunds got any other charges than 20$ processing fee. Also, I withdrew after 4 months.

 

[getsthingsdone]

Check the rate.

 

[edaxe]

Check the rate.

Where? It's definitely not from https://isbo.cibc.com/#/payment

 

[getsthingsdone]

Where? It's definitely not from https://isbo.cibc.com/#/payment

Did they refund a smaller amount or did they give you the same amount and you lost money due to forex?

 

[edaxe]

Did they refund a smaller amount or did they give you the same amount and you lost money due to forex?

Idk they say their exchange rate is 53.890925 for a refund on the portal, and they won't even tell me which portal. I paid in 56.45571. I've no idea why such a spread exists without making their clients aware of it.

 

[getsthingsdone]

Idk they say their exchange rate is 53.890925 for a refund on the portal, and they won't even tell me which portal. I paid in 56.45571. I've no idea why such a spread exists without making their clients aware of it.

That is outright robbery. The refund rate should only be little different but those cheats charged so much.

 

[edaxe]

That is outright robbery. The refund rate should only be little different but those cheats charged so much.

Yep, Idk what to do, that's like half of my family's monthly income

 

[jigzyy]

What was the original method that you used? Money sent in USD -> USD, INR -> CAD, USD -> CAD? If it's not USD <-> USD.. you will loose in forex rates.

 

[edaxe]

What was the original method that you used? Money sent in USD -> USD, INR -> CAD, USD -> CAD? If it's not USD <-> USD.. you will loose in forex rates.

I wasn't informed by them.
I paid a local currency(INR) branch in my country in CIBC's name. It was 56.45571 when I applied from this portal https://isbo.cibc.com/#/payment
No idea what happens behind the scene with the money, they just applied a refund exchange rate of 53.890925 and stole about 5% of the GIC.

 

[jweekend]

It's not uncommon to have a spread of 5% at retail banks.

 

[Impatient Dankaroo]

The money probably got double converted like Jigzy stated above. It happened to me once, never again. Basically your money is getting converted INR to USD to CAD back to USD back to INR. Each time there will be a % conversion cost

 

[jigzyy]

Buying and Selling rates are always different. That's why. Whatever the selling rate of the intermediary bank was, you got it.

 

[scylla]

So, I've canceled my GIC from India amid the pandemic and asked for a refund. It was approved and they sent me about 400 Canadian dollars less than what the gic was worth.
So like they sent me 9484 CAD instead of 9980 CAD. What do I do?

When I asked them before initiating a refund, the support team told me the exchange rate would be the same as the portal used for applying. I'm so confused They kinda deducted my dad's 1-month salary at once with false information and no details.

This is due to fx rate differences on the buy and sell side. This is normal and how banking works gloabally where you are exchanging currencies. I don't see there's anything you can do since you agreed to this when you signed up for the GIC. See CIBC's terms and conditions:

https://www.cibc.com/content/dam/special_offers/international-student-gic/isbo-terms-and-conditions-en.pdf

Returns and Refunds: A. If, for whatever reason, a funds transfer or any other payment you make via the Online Platform is returned or refunded to you, we will reconvert the returned or refunded funds at the then-prevailing CIBC foreign exchange rate for the relevant currency pair. This foreign exchange rate may be different than the one quoted to you when you transferred funds to us. The funds will be transferred back to the exact same bank and account they were originally sent from. This means you may not receive the amount that you originally transferred or paid and you shall be responsible for any resulting Losses, including any foreign exchange losses due to fluctuations in foreign currency pricing, and any intermediary bank charges or fees. We may also charge you a refund processing fee, which will be disclosed to you on the Online Platform.