A West Vancouver couple has filed suit against the Bank of Montreal (BMO) over term deposits which, the couple alleges, were not repaid by the bank on maturity.
Michael Moody and Carole Moody filed suit January 10 in BC Supreme Court, seeking the return of $76,958 plus damages.
The Moodys allege that they obtained mortgage financing in 2009 from BMO and that, as part of that agreement, they agreed to deposit three sums of $25,000 with the bank – one in a variable rate guaranteed investment certificate (GIC), one in a redeemable short-term investment certificate, and one in a rate-riser GIC.
The plaintiffs claim that, upon maturity of the deposits, they requested the return of the funds. They allege that BMO “has been either unable or unwilling” to repay the deposits, and has re-deposited them in a term investment and a GIC.
“As the result of the failure of the defendant, Bank of Montreal, to pay the aforesaid amounts, the plaintiffs have had to use alternative financing on their mortgage properties and as such have incurred financial losses and incurred [a] higher rate of interest than would otherwise be payable by the plaintiffs,” the statement of claim alleges.
In a statement of response, BMO said that the $1.9 million in mortgage financing provided to the Moodys for two properties was subject to various terms. The bank alleged that, for example, the plaintiffs agreed to deposit $75,000 in cash collateral until judgments registered against the properties were removed.
“The judgments have not been removed from the titles, and the defendant is not liable to repay the $75,000.00,” the response argues.
BMO states that it opposes all the relief sought.
None of these allegations have been proven in court. •
