When an Edmonton lawyer and former family court judge, James Koshman, passed away, his family faced unexpected issues transferring his survivor’s pension benefit to his widow. Despite the issuance of a $15,000 survivor benefit, the money ended up in the wrong account due to an incorrect transit number provided by CIBC. The Koshmans received the number from a CIBC employee, as confirmed by a call to the local branch.
The family later found out that crucial instructions regarding the use of the transit number were sent to James’s email account weeks after his passing, leading to further confusion. CIBC was only able to recover $3,200 of the misdirected funds, leaving Yvette Koshman with a significant loss of nearly $12,000. Despite months of communication with the bank, CIBC claimed there was nothing more they could do.
Consumer advocate Duff Conacher highlighted the deficiencies in bank accountability and Canada’s complaint resolution system. The Koshmans escalated the issue to the Ombudsman for Banking Services and Investments (OBSI), which prompted CIBC to reimburse the family in full after media intervention.
The case exposed the limitations of OBSI, as it lacks the authority to enforce its recommendations on banks. The Finance Ministry’s response indicated a lack of concrete action to address these issues, emphasizing the need for improved consumer protection in the banking sector.
The Koshmans expressed frustration over the mishandling of their funds and the lack of accountability for the unauthorized recipient. While grateful for the eventual reimbursement from CIBC, the family emphasized the importance of holding banks responsible and preventing similar incidents from impacting others in vulnerable financial situations.