Collateral mortgages and the lack of disclosure and understanding are costing Canadians. CBC did an excellent investigation into banks misleading consumers. Their findings are both in writing, “Banks misleading on mutaul funds” and video “Busting the banks“. I won’t go into misleading consumers when it comes to mutaul funds nor will I discuss the crazy fees the banks charge, CBC has done a fabulous job. It’s all very interesting but the collateral mortgage investigation is something that has hit a never with me.
All banks use collateral registration on certains products, but there are a few banks who use this type of registration on ALL their products. CBC’s investigation looks at TD bank specifically. Throughout the undercover video investigation, CBC speaks with a TD bank consumer who was not aware of the collateral registration and as a result became very upset with the lack of disclosure and additional fees. You’ll have to watch for yourself to believe. Here is the video again and fast forward to a time of 8:20, which is where the collateral discussion begins.
For more information on the collateral mortgage, please call my office at 403.242.5547.
